Important Factors to Consider When Choosing an Area for Your Business

A business requires a lot of labour to launch. Months will probably be spent on chores like creating a company plan, finding funding, and organising your legal papers. But selecting the ideal location is one of a business owner’s most crucial jobs.

Your potential for financial gain, market impact, operating costs, and other factors will be impacted by where you launch your firm. Likewise, if it inhibits you from making enough money, your location may limit how you do business and possibly put it in danger. Let’s examine the factors to take into account when selecting a business location and how to locate the ideal spot to open your doors.

Geographic location

You must first launch your company in a location that puts you in close proximity to your target clientele. 93 per cent of consumers, according to Access Development, travel 20 minutes or fewer to make regular purchases. Consumer behaviour is similar in urban and rural areas, albeit consumers in the latter will sometimes go further for some commodities.

It should go without saying that you must select a location that is inside this 20-minute interval. However, how can you figure out this distance? Consult your company strategy and the market study section while you look at potential locations. Based on your research, pick the area of town where you have the most customers.

Operational Needs

Next, you should search for a workplace or structure that complements your business strategy. It is ideal to obtain a retail space for a retail business, while you can easily operate a store in an old restaurant. Similar to that, it’s always possible to modify a structure to meet your operational requirements, but doing so is expensive and rarely essential.

Among the crucial elements to consider are:

Kitchen: Does the kitchen have adequate room to accommodate your crew and appliances if you plan to create meals?
Floorplan: Does the design of the facility fit your preferred operating method? Does it contain all the rooms, bathrooms, and other necessities you require?
Size: Will there be adequate room to seat guests or exhibit your products?
How much inventory will you store?

Rent Cost

Once you narrow down your selection of locations, you will want to compare costs. If buildings are located near one another, your lease will likely be near the same price.

According to Hartman Income REIT, most businesses should pay 10% or less of gross income for rent. For example, if you generate $20,000 revenue each month, your rent should ideally be $2,000 or less. You will need to compare value when factoring in rent costs. Ask yourself these questions to see if the rent price is worth it:

Is parking included?
Are any utilities included?
Does the property have any energy-saving features?
Will one space cost more or less to heat and cool than another?

Security

Some companies require more security than others. A modest restaurant could only require a reliable lock, whereas a jewellery store might require a sizable safe and sophisticated alarm system. Compare locations and note any security measures already in place. Additionally, find out if there is any way you can improve the property, such as by adding security gates or cameras, from the property owner. Analyze the region’s general safety in a similar manner. There are more crimes in some areas than others. Make sure you take the necessary steps to prevent theft or property damage if you are conducting business in these regions. Additionally, you might want to think about another location if your industry is one that is prone to theft.

Competition

Should you open your store near a competitor? Common sense might say no, but you actually can benefit from selling near similar businesses. Did you know that the average CVS store is less than a mile away from Walgreens? Likewise, did you know that the average Lowe’s is less than four miles away from a Home Depot?

Why is this?

Consumers like having choices. They also like convenience when they shop. This is why malls and shopping centres are so popular among retailers. Think about the typical outlet mall. There are dozens of retailers selling similar products, yet the majority are profitable. Why is this? Generally, these stores benefit from the large consumer demand in the area. Shoppers know the location has plenty of choices, so all stores benefit from the high foot traffic. If these stores were alone on the side of the road, how many consumers would visit for a t-shirt or pair of jeans? So, when you consider where to open your business, make sure that the area has a healthy level of competition so you can benefit from the consumer demand.

Conclusion

Any new small business will need hardware and software to manage daily operations. A point of sale system, or POS, is a must-have device for operating a retail or hospitality business. The type of system you choose can affect your business. An old system can slow you down, while a new system can help you do business better.

With a modern POS, you can: