Tuesday, October 21, 2014

What to Consider in the Search for a Business Location


Consider the Surrounding Community
Determine if the community is actively seeking new companies. Learn of possible incentives by contacting the local economic development agency. You could receive financial support for tenant improvements, municipal programs giving preferences to area businesses or local tax and planning department waivers.

Tip: Try to lock in incentives prior to signing a lease to ensure you get the incentives you are promised.

Beware of Problem Locations
Some locations are simple bad for business. So look out for revolving business sites that is the home to a new business every few months. Remember the goal is not to buy the cheapest location. According to lease consultant, Dale Willerton, the goal is to select a site that will help you maximize sales.

Identify Target Customers
Seek locations that have an abundance of your target customers and employees with the necessary skills to get the job done. Other considerations for your customers include market size, customers’ purchasing power, traffic flow, and any physical barriers and traffic limitations or detours.  

Pay a Fair Price
Be realistic and ready to pay for a good location. Good locations are not cheap, but they will contribute toward business success.

Know the Competition
Evaluate the competition and be certain there is enough business to go around. If the area is saturated with similar businesses then you may want to consider a new location. If you are determined to compete in a tight market you must be able to offer a product or service that sufficiently changes to the game and draw enough business to make the operation workable. Assessing the competition will also help determine if your company can gain a competitive advantage by offering something the existing competition doesn't or determine if your business idea is feasible.


Note: These tips were taken from the article “5 pointers for Selecting a Site for Your Business”. For the full article refer the following link: http://www.entrepreneur.com/article/238700

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