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How to Choose a Business Location: 7 Factors to Consider

Updated: Jan 5, 2023


location, blue tag

First things first, the business location you choose will depend on the type of business you operate. You should do some research to study the business and target market to see where you can find business support services and a growing community of people with regular incomes and interest in the goods or services you plan to offer.


With these helpful tips, you can determine the best place to set your expanding business.



shop lot, colourful shop lot

1 Decide on a business type


Here are five common types of business, define your business and then only you can choose the shop locations:

  • Home-based business - suitable for online business, so that you can work from home

  • Retail business - shopping malls, shop lots, retail space in airports

  • Mobile business - suitable for food truck which can move around

  • Commercial business space - office building, but best for businesses that do not rely on heavy customer traffic

  • Industrial site - suitable for manufacturing and distribution business


budget, calculator, pen, eye glass

2 Make sure the business location is within your budget

One of your major priorities will be finding a location that fits within your company’s budget. But not to forget, you may consider the different hidden costs such as taxes, renovations, utility upgrades, minimum wage requirements, and economic incentives.



brand

3 Consider your brand

Keep your brand in mind when developing your business location strategy and looking at options. For example, you probably would not want to set a Michelin restaurant in the middle of a college town or rural area, because customers in that area have less spending power and are used to spending less money on cuisine.



shake hand, business partner

4 Think about vendors and suppliers

You will need to choose a location that is easy for you to connect with your vendors and suppliers. So, when considering your options, ask yourself which location site makes it easier and cheaper for you to get the raw goods you need to operate.



beautiful places, beach

5 Find a safe and secure location

Operating a business where you feel safe and protected should not be underestimated. Your own safety, the safety of your employees, and business safety should be taken into consideration. This is especially important for businesses with inventory or businesses which sell luxury products such as jewelry, gold, or electronic products that may be at a higher risk for burglary and theft.



cafe, buy stuff, buy product, sell, buy, shop

6 Go where there is high demand

You should look for areas where your product or service is in high demand. For instance, opening a mini market in a rural area is fairly high demand, as they want to buy groceries, so the need to go into town is fairly far.



parking lot, many cars

7 Look for sites with parking options

Lastly, does your business location have a convenient parking lot, or will your customers need to pay for parking and will they be willing to pay?


There are several business location factors to consider, from pricing and availability to parking, and market appeal. Choosing the perfect location for your business is crucial, so it is essential to do the research before committing to a location.


We can help you with finding the best commercial properties that suit you, click the button below to reach us out.






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