What do investing in real estate and starting a business have in common?
Location, location, location!
Just as in real estate, location can make or break your investment. A good location will spur the growth of the business while a bad location can ultimately be the primary reason a business closes shop.
This begs the question: what factors should an entrepreneur consider when choosing a commercial address for their business?
The blog post has a couple of handy tips to keep in mind as you start your search.
1. Business Location Type
While we’d all like our businesses to be located in the heart of the city, the nature of your business can dictate the location.
For example, if you’re opening a law firm, by all means go for an office in one of your city’s skyscrapers.
But what if you’re opening a manufacturing plant? You need an industrial location, and those tend to be located towards the outer parts of a city or town. Or, some cities are known for their industrial vibe, so you may want to locate your business in one of those cities.
If you’re planning to start a home-based business, you may not think so much about the location if you’re already a homeowner. Naturally, the business will be domiciled there.
However, the location of the home will have an impact on the performance of the business. You might want to relocate to a home that’s in a more favorable location, keeping the type of business you want to start in mind.
On that note, if you’re a home-based business, you will benefit from business address and online mail services. This will give your company a professional look and protect your home’s privacy.
2. Your Brand
The unique look, feel, and identity of your business is what constitutes its brand. Several elements go into the creation of a brand, and location is one of them.
If you have a clothing business with a “chic” brand, for example, your choice of location needs to compliment the “chic” aspect. It’d be a big disservice to your branding efforts to open a commercial office in a location that doesn’t give off elegance and sophistication.
Or let’s say you’re a residential tree care company. You’ve cultivated a brand with a “homely” identity. It would not be ideal to base the company in an office park in the central business district. You need a neighborhood location that puts the business closer to its target customers and gives you adequate space to store your equipment and machinery.
As such, if you’re a new business, take time to establish the kind of brand you want to build, and find a location that would complement that brand. If your business already has a well-established brand, don’t assume that location is no longer important for its image. For as long as a business is in existence, its location will be intricately tied to its brand.
The cost of leasing or buying a commercial space is one of the biggest expenses for most businesses. Even after considering all other factors of selecting a location for a business office, if your budget doesn’t allow, there isn’t much you can do about it.
Location affects property values significantly. You already know that a commercial space in a big city like New York will cost you a lot more than a similar-sized space in the business district of an inner city like Albuquerque.
Before searching for a business location, crunch the numbers and find out how much the business can afford to pay in rent. Keep in mind that it’s not uncommon for commercial leases to require quarterly, semi-annual, or even annual payments.
With a budget and some market research, you’ll quickly find locations that match your needs.
It’s essential not to let your budget entirely dictate your choice of location. Strike a balance between the location and other factors such as your brand.
For example, if you have a corporate recruiting firm and would like a prime space in NY but your budget doesn’t allow, don’t settle for an office in the dingy parts of the city because that’s where you can afford. It might be better to find a city where rents are lower but uphold your dream of setting up an office in a nice office.
4. Labor Market
Your business needs employees. Depending on the type of business, some workers can be a bit more difficult to find than others.
For instance, a manufacturing plant will need skilled engineers. When choosing a location, ensure the labor market has the workers you’re looking for in plenty. If there’s a labor shortage, you’ll not only struggle to fill vacancies but also your hiring costs will spike through the roof.
In addition, consider the local labor regulations. What’s the minimum wage? What’s the law on overtime hours? These regulations will affect your operating costs.
5. Product/Service Demand
Choosing a cheaper location for your small business might sound like a financially prudent decision, but it can also turn out to be a catastrophic decision if there isn’t strong demand for your products or services in that market.
This means you have to consider whether your business will find customers in a certain location before settling on it. Do some market research to find out the size of the customer base, as well as the state of competition. A highly competitive market will make it hard for your business to gain ground, even when the location ticks all the other boxes.
Find The Perfect Commercial Address
Whether you’re running a brick-and-mortar business or an online store, having a commercial address is crucial. It gives your business physical proof, adds to its professional image, and provides a meeting place for customers and team members.
Given these benefits, you cannot afford to choose a commercial and mailing address that doesn’t suit your business. Luckily for you, the article has unpacked some of the most important factors to consider when choosing a location.
Browse our blog for more informative business articles.