Tips for Choosing the Best Location for Your Business
Starting a new business can be an exciting adventure, but choosing the right location for your business is an important step that requires close consideration.
Whether you are starting a new business or expanding on a current venture, choosing the right site is one of the most important decisions that goes into developing a thriving business. The impact of a business’s location is crucial to any company, whether you are involved in manufacturing, retail, or service businesses. Although the process may feel overwhelming, there are a few key steps that can be taken to make sure a location is perfect for you and your business. It is important to think about the future of your business and what strengths it possesses when it is time to eventually sell. An ideal location may raise your chances of finding the best buyer and securing the best possible price for your business that you worked so diligently to build and grow.
1. Obtain Demographic and Economic Information
Considering the surrounding population of a site is an important aspect to examine when surveying potential locations. Obtaining demographic information that includes the density of population, income levels, and education levels can help you to decide if a location is right for you. Evaluating the demographics and economic makeup of a location should also include other businesses in the area. This will give insight into potential traffic generators, competition, or businesses that may complement your own. Traffic generators can be movie theaters, parks, schools, or hospitals and help to guarantee patrons and exposure. In some cases, traffic generators may be a negative feature of a site, so it is important to decide what is best for your business. A simple search online can provide you with demographic and economic information, but if you wish to find more specified information you can work through a real estate professional.
2. Research Local Codes and Development Plans
Reviewing the codes of a location is another important step when deciding to invest in a possible site. Local codes can impact what kind of signage, colors, or other physical aspects of your business are permitted. Impact fees are left to the developer, so considering codes involving roads, sidewalks, lights, and sewage will help you to understand the potential costs and responsibilities of developing at a location. Learning about zoning and business activity in the area can aid in your decision making, you can contact your local government to learn about future and potential development plans that could affect the property. Researching local real estate taxes, as they can vary by region, is encouraged as well.
3. Evaluate Physical Traits of Location
Assessing the physical build of a potential location may seem like an obvious step, but it is important to note specific characteristics of a location to determine if it is the best choice for you. Considering a site’s visibility and the traffic count can aid in marketing efforts, a good example of how location affects many different facets of your business. Another aspect of this step is comparing price-per-foot for rentals, this includes researching what others have paid for rent or real estate in the area. It is also helpful to consider your layout and space requirements, as well as any potential repairs a site may require. Checking functionality of utilities such as ventilation, plumbing, and lighting is important to factor into potential costs and repairs.
Investing in a location for your new or expanding business is a huge step in anyone’s career. Having a clear idea of what your business needs out of a location and conducting the proper research can help to guarantee you make the right decision. There are many different points to consider when searching for the right site, but taking the time to look into each feature of a location will ensure that your business is a success. It will also increase your chances of getting a higher price for your business when it is time for you to sell. If you’re ready to sell your business, Viking Mergers & Acquisitions can assist you in determining the value of your business. Request your free valuation today or see our current businesses for sale.