How to choose the right location for your business
There’s no denying that remote working has revolutionised the way we work, but there will always be businesses that require an actual physical presence. A place where customers can visit, stock can be stored and where employees can work together. In this post, Quality Company Formations share their advice for choosing the right location for your business. Let’s get started.
Write down your requirements and your budget
Before you start scouting potential locations, jot down everything that you need from the space, as well as the money that you can dedicate towards it. It’s vitally important to be realistic at this stage.
What you require will obviously depend on the services(s) you offer and how you offer them. If you’re looking to open a cafe, you ideally need to set up on (or near) a high street that receives consistent footfall and can provide you with the necessary space for a seating area and kitchen.
Alternatively, you may be operating an online business where your sole requirement is an office where your team can comfortably collaborate. In this case, your needs will focus less on the actual location and more on the amenities available, such as high-speed internet, air-conditioning, meeting rooms, and so on.
Whatever it is that you need, write it down and keep it on hand, so you can tick off each requirement as and when you visit possible locations.
The impression you make
Will you be continually trying to attract customers (and partners), or is the idea of ‘wooing’ business contacts irrelevant to your industry?
If it’s the former, you’ll be regularly hosting meetings where your goal is to impress, so you should be looking to set up shop (or office) in a reputable location that will demonstrate just how attractive your business is – in the heart of a city centre, or a trendy suburb, for example.
However, if it’s the latter, and there is no real need to ‘sell’ your business, you can settle for a less prestigious, and therefore less expensive location.
Stay away from competitors (or get close)
If you’re operating in a competitive industry, you should carry out research into the locations of your main rivals.
Not only will this give you insight into the types of areas that businesses within your sector are working in (and perhaps inform your decision), but it will also help ensure you don’t pitch up next to a competitor.
Of course, this may work if you were opening a restaurant that offered a different cuisine to a neighbouring restaurant, but it wouldn’t be ideal if you were opening a hair salon next to another hair salon.
Match the location to your business
If the work you do is primarily offline, there must be a need for your business type in your chosen location.
For example, if you wanted to set up a dog grooming shop, you should open up in a prosperous area where pets are prominent. Likewise, if you were setting up a children’s nursery, you must be based in a location that obviously has plenty of children, as well as parents who can afford to pay your fees.
‘If you build it, they will come’ is a high-risk strategy for any business. The perfect scenario is opening up in an area where you know there is an appetite for your offering.
Give yourself room to grow
There’s no point moving into an office, shop, or warehouse that you’re going to outgrow within a matter of months. Revisit your business plan and look at where you are now and where you want to be in 12 months, then ask whether the space you are looking at facilitates this growth.
On the other hand, you need to be realistic. If you aren’t on target to meet your goals, will a smaller location suffice?
Businesses move all the time, and this is to be expected. However, you don’t want to move into a space, only to realise within a short period of time that it’s wholly inappropriate.
Thanks for reading
So, there you have it, how to choose the right location for your business. We hope you find this post helpful as you endeavour to find the perfect home for your operation.
At Quality Company Formations, we offer a number of address services designed to help the small business owner protect their residential address from the public register, and make a great impression at the same time.
