- Factors to consider when choosing a business location
- How to choose a business location
- Bonus Tips
As an entrepreneur, one of the most important things to consider is where your business will be located. We have written this article to show you how to choose a business location.
The site of a business venture has a huge say on the welfare of the business and represents the reason why a lot of thought is given by startup entrepreneurs to where their business is to operate from.
Have you ever asked yourself why most of the thriving companies in Nigeria are located in Lagos, Abuja, Port Harcourt, Enugu etc?
Even in the US, most successful companies are located in New York, California, Silicon Valley etc.
Statistics show that 65% of businesses in Nigeria are in Lagos, thanks to a dense population.
Due to its large number of inhabitants, a metropolis is a more fruitful place to run a business and also one of the business location ideas you should consider.
Factors to consider when choosing a business location
1. Determine the type of Location
There’s always a perfect location that best suits every lucrative business idea, whether you want to work from home or rent a public space. Consider the following location types
- Commercial Space – This is like having your business located among other businesses and sometimes close to your competitors.
- Retail Business – You can get a retail space to sell your products.
- Mobile business – Some business ideas require you to move around to reach more people as possible per day.
- Home-based – This is a good option if your business can be run from home.
- Industrial Areas – This is for businesses that let off major pollutants.
2. Do your Research
Before you locate your business in a particular place, you should do some research to know if there is a demand for your products or services.
Your business will experience a sharp decline whenever the number of patronisers begins to drop.
The ideal business location should be compatible with the law of demand and supply which provides a steady stream of customers.
A good business location should possess the ability to always provide those who will buy from you even when the market competition gets tougher. It should be closer than far to your clients and at the same time accessible.
Research your competitors
Competition is a good thing for business.
Before you launch your business in a particular location, you should at least know who your competitors are. You wouldn’t want to locate your business next door to your competitor.
3. Availability of Raw Materials
The availability of raw materials is the best thing that can happen to any business.
A cement industry should be located in an environment where there is the availability of limestone and other necessary raw materials
An oil company should be located in an environment where there is the availability of oil like Rivers and Bayelsa state.
However, you should locate your business in a place where there is an efficient supply of raw materials.
4. Adequate Security
Your safety, goods and customers’ safety should never be compromised in the right business location.
Running a business in a serene environment makes clients feel at ease whenever they visit your firm and also confers a degree of trust in your enterprise.
Employ a security guard if your business can cater for it and also ensure security agencies are only a phone call away.
5. Availability of Basic Amenities and Incentives
A healthy transport link, standby electricity as well as other publicly provided amenities should be obtainable wherever you decide to set up your business.
This will save you extra costs that would be incurred if you go about providing these for yourself while also making jobs/tasks easier to meet up with.
You should also choose a location where there are government incentives. These startup incentives help to encourage small businesses to open in certain locations.
6. Capacity for the future
The ideal business location must have a long-term future, entailing that you can also carry out future expansion work on the location. It should boast a guaranteed duration of at least 50 years or above.
Always switching business locations will make you lose clients from time to time which is an ordeal you do not want to envisage.
If you’re renting the business location, then make sure the structure will be able to serve you till you get enough money to build yours.
How to choose a business location
Now you have considered some of the factors mentioned above, you can go ahead to Find the perfect spot for your business. This is how to choose a business location for your small business.
1. Find a Space
The space you should look for determines the kind of business you want to do.
Let’s say you want to run a barbecue business, your location has to be a place where there’s a lot of foot traffic.
You can hire a company to help you find a good space for your business.
2. Make your payment
If you have found a space and it perfectly fits what you want, you need to make a payment for the space before someone else does.
3. Refurbish and Decorate your space
The space you rented probably might be messed up. You should refurbish and decorate to suit your needs. You can hire a cleaning company to clean up the environment.
4. Start operations
Set up all the equipment you need for work and then start operations. If your business requires more hands, then hire someone to work with you.
Get on Google map and Bing Places for Business
Google maps and Bing Places for business is a great ways to kickstart your business. Google and Bing help you to list your business and drive customers to your business location.
As potential customers search for your services, your listing appears with your business name, phone number and address thereby allowing them to easily contact you or visit your business location.
Get a website
Getting online is an advantage for your business. A website will help you get leads and customers searching for your services. You can hire a company to create a website for you.