You might be considering starting your own business or you are choosing to relocate your business for whatever reason you have.
Business location is just as important as all other factors to consider before starting a business.
The location of the business plays an important role and will also detect the future performance of your business.
In this article, I shall share some of my tips to help you make a wise choice on where to locate your business.
Business accessibility is essential in all types of business.
You ought to consider if your chosen location favors your target customers. Will your business be a far reach or an easy reach to your customers?
Look into the goods and services you want to offer. Are they in demand at the said location?
If not, then there will be no need to set your business premises there. Look for a target customer that suits the services and goods you intend to sell.
Employee accessibility is also important.
You have to make it easier for your employees to get to work and if you cannot compromise with the distance, the least you could do is have a designated means of transport or set up residential areas for your employees.
All these will depend on the scale of the business.
Another aspect to consider is market competition.
The lesser the competition is in the area, the better it is for your business.
Take note that competition may lack in some areas because the consumer market is not in demand of that particular service/goods.
You therefore should avoid this location because it might injure your performance as a business.
As much as I encourage you to go for a location with less competition, you should know that there should be an established healthy competition between you and other businesses.
Healthy competition would mean that all businesses in the area offering the same goods/services offer them in a manner that is profitable to each and the price/fee is satisfactory to the customers.
Business monopolies can be harmful to the economy. We should not as businesspersons be guided by individual interests.
2. Customer appeal
You might think that you have just the right location for your business and forget this other important aspect of any business, customer appeal.
How you present yourself to your customers will go a long way to determine the success of your business.
Customer appeal will cover the general outlook of your business. The theme, the color code, the appearance, e.t.c.
Have you ever walked into any company’s customer service desk and are amazed at how beautiful the company has presented itself, because I have.
Maybe it is also time for you too to consider getting stylish, presentable, and appealing furniture for your business.
Next is on security. Every business should be located in a secure environment.
The aspect of security will cover the security of your business, the security of your employees, and yourself.
By labor laws, all employees should be given a proper and secure environment to work in, if so not granted, employers are at risk of being held personally liable.
You should therefore take very seriously matters of security.
If your final location is in an area where you have doubts as to the security of that location, then I suggest that you consider other protective measures that you might get for your business.
This might be getting an insurance policy to cover any risk that may arise, for instance, theft, fire, e.t.c
4. Local Tax implications
Governments have in the past been seen to set taxation policies that differ depending on your location.
Some locations have lower tax charges than others, especially in rural areas.
This is done as an effort to encourage economic productivity in the rural areas and discourage the overpopulation of industries in urban areas.
Understanding the taxation system will help you choose a better location for your business.
Locational tax implication is not absolute as in some states, all businesses are taxed the same, regardless of the location.
It is therefore my opinion that you understand how local taxation is done and go for locations that favor your income or expected income.