The success of any business begins with the ability to choose the right business location. Many small business owners have asked me this question many times and I want to address it now.
Just like many of them will ask, “how can I choose the best location for my business?”
Choosing the right location for your small business is a matter of determining what is absolutely important to the success of the business and alternative forgone other factors you think you can compromise.
Following and answering the questions below correctly can help you find the location that will give your business the best possible chance of success.
1. Who is your target customer?
Your target consumers are your target market. This depends largely on the products or services you are delivery or offering. How close are your consumers to this location? Will they be willing to travel to your business location to buy things from you at no cost? What about your key distributors, wholesalers and retailers? These are all you target market and you have put them into consideration before locating that your business at site.
2. Who are your competitors?
Imagine how much small business owners sweat over finding a location where there is no competition so as to enjoy some ‘monopoly’ advantage. Unfortunately, it doesn’t work that way. You need to be close to competitors, in the retail market, so that you can sell to both your customers & to that of your competitors. A well-established competitor indicates plenty of target customers to go around
3. How much do you have for the business?
The old saying “you get what you pay for” is by far the best advice when choosing the right location for a business. High risk = high reward. Period! There is no such thing as perfection but there are “close to’s”. If you can’t afford it, find where you can afford and then relocate when you can.
4. Can you allow your business fit into normal life?
It’s important to ask yourself this question, “how much am I willing to disrupt normal life in order to be close to my customers? At the beginning of every business, it requires long hours on the site – so you need to ask how much time you’re willing to spend traveling to-and-fro from your home staying away from your family. This may seem like a loaded question but it is decisions you have to make for yourself. I believe that what is best is to be close to places that you can enjoy and provide a high quality of life.
5. Where are your business labor forces or employees?
Your workers or labor forces are very crucial to business. Are they readily available? Will be ready to pay for their transport fare to-and-fro your business site
6. How will tax rate affect this business on this location?
If your business is going to cut across more than one state in your country, you’ll need to compare tax rates; these can vary a great deal in maximizing profit and really affect your business bottom line.
7. How close are the business raw materials?
Basing your business outside of the biggest cities can be a good choice, especially if you need to bootstrap the business and avoid health hazard implication. But you can’t be too far off from those cities, especially if you are going to need raw material or similar help.
8. Where is your business mentor or consultant?
Someone you can trust and who really knows the market very will be a great help, as well as your own common sense and attention to detail. How far is this person from your location?
9. Is this business an area zoned type of business?
Make sure you don’t fall outside the zone if your business is zoned type.
10. How secured is this location?
Any locations you are going to situate your business should be fortified with security otherwise your business is at risk. You have be security minded when choosing a location for your large, medium or small scale business.
11. Any local business organizations that will help with marketing?
Marketing is crucial component in business; it plays a vital role to the success of any business. Therefore, when choosing location for your business think of setting where local organization can help market your product or service.
12. Are you ready to ask questions?
When starting any business, try to visit those who are already into the business similar to yours and take a good look at the customers. Find out if they are older, younger, more affluent or less affluent? Do more women usually frequent the business than men, or vice versa? Ask the existing business owners what they’ve learned about their customers and how they location affect their business. I bit you, they will be surprises
13. Will the business affect the health safety of the neighborhood?
Industry based business are usually suited close people because of health implications. Where you will locate your business largely depend on what you produce or services you will be rendering.
14. Will you be able to establish a good working relationship with the locality?
Obligations and rules demand that you should be able to establish good relationship with your locality or neighborhood
15. Does the site have a good layout?
If there is a need to expand, will you be able to do so?
In summary, a lot of hard work and careful consideration must be put into place when seeking out for the right location for your small business. If you sincerely answer the above question correctly; I’m quite sure that you are close to the perfect location for your small business.