Whether you are starting a new business or simply relocating an existing one, choosing a location to operate should be a planned decision. This should be executed carefully and many aspects need to be looked over. It’s never an easy process to undertake but one thing is certain, the right location can make or break a business.
Know your clientele.
Many businesses don’t need to be located in a prime area. Some are based online. Others may be catering to a local community and relocation may have core customers diverted. Knowing the habits of your customers should factor heavily into consideration for choosing a new location to set up shop. Moving a business location may seem like a great idea, but it can also be like starting completely over in terms of regular customer business.
Estimate your business growth.
There are several expenses involved with moving a business, some of which include a temporary company shutdown to accommodate the move. Relocation should be an option only if the move is good for business. Evaluate potential business growth that can come with the move and compare it to the productivity that is currently keeping your business going.
Weigh out the pros and cons.
Choosing a new space to operate comes with several positives and negatives that could help grow or hurt a business. In either case, there are going to be changes involved with the move of a business. If the space is bigger than a previous space, evaluate to see if that extra space is indeed necessary. If so, what would be the impact of the move? For new businesses starting out, figure out how the location benefits business while paying attention to the negatives that could hurt business as well.
Scout out locations.
Most of the best locations are rarely ever advertised online or through agencies. By doing some independent legwork, finding the right location might be easier than you think. Do some research on different neighborhoods, take a drive to the location, and check out a variety of different spaces. Many businesses owners will be surprised by what they find!
Talk to other businesses.
As a business owner, making contacts and networking is invaluable. Talk to fellow business owners and discuss different potential locations. If a general location has been chosen, talk to the surrounding businesses. Asking questions and discussing how business is going in certain areas will help in making the decision whether or not the location is right for your business. Current residents will share their experiences with customers as well as with the management.
Contact the management and negotiate.
The final step in choosing a location to set up shop is to contact the management of the building. They know what the location is worth and will likely try to push that envelope higher. They may also push for a long-term lease where it’s not quite reasonable. Remember that everything is negotiable and if something seems too perfect then there are likely to be hidden items in the contract so be sure to read everything thoroughly before you sign any documents.
As the saying goes, one of the keys to business is location, location, location. Choosing a location that is beneficial to business is an essential part of operating one. Choosing wisely, using educated and well planned information will certainly help your business prosper.
Katie Kent is a real estate agent and published writer from Tucson, Arizona. She has a passion for real estate, mortgage rates, and helping her fellow real estate professionals reach their maximum potential.