How To Choose The Right Location For Your Business?
Location, Location, and Location…! We have all heard this a hundred times when looking for a house and even while looking for an office space. But, how exactly does location become so important for a company that’s just starting out? Or even for an established company looking to start a new operation.
Here are the 5 things that define the importance of choosing the right location for your business irrespective of the size, type or category:
- Affordability: You’ll be paying based on the locality and location you choose.
- Accessibility: Based on location, you’ll get access to neighborhood amenities
- Competition: Based on office/store location, you will have very few or many competitors
- Proximity: Based on the locality, you’ll get access to your partners and different stakeholders
- Infrastructure: Many times, based on the locality you operate, the infrastructure of the buildings and nearby places are situated.
So before choosing a location, you will need to have a clear picture of what you absolutely want, what you would love to have, what you won’t need and most importantly how much can you afford to put into the workspace.
In order to understand these, you’ll need to know the answer to these 6 factors. This will help you in choosing the right location for your business:
1. Location Costs
Besides the base rent you would be paying, there will be other costs like building maintenance charges, electricity bills, office essentials and even costs pertaining to transportation.
So, while choosing a location, one should factor in all these charges that will essentially build-up to the total business expenditure along with the rent. Typically these charges should be kept under 30% of your rent.
Demographics play an important role in choosing the location. There are two angles to choose based on demography.
- Consider who your customers are and how important their proximity to your business is? For example, would they be walking into your office space frequently or would you be travelling to their place frequently from your office?
- How important is it for your employees or other stakeholders to be able to access your workspace on a daily basis? Should it be in a popular locality within the city or if remote location also works?
So, choosing the right location should be based on these factors along with the convenience in business operations.
Competition should be factored in before choosing a location and this becomes a key point in your business idea too. Especially for retail businesses, competition plays an important role while choosing a business. This helps in understanding the market as well as understanding the opportunities.
While shortlisting a location, you will need to make sure that the competition will not chew through your business. At the same time, you should also make sure that there are other businesses who are successful.
Many of the times, without realizing we opt for a space which has restrictions and regulations from authorities which will affect the overall business. This not only affects the business operations and sales but also leads to infringement.
One must make sure that the authorities and regulations are not broken by your business or the business operations while closing on a particular location.
5. Location Amenities
Even if the location you choose is suitable for you and your employees, there are other stakeholders like vendors, clients, customers, advisors, etc. who would be visiting your office on a regular basis.
In order to entertain and make it convenient for other stakeholders, one should be choosing a location that has easy access to parking space, gas stations, coffee shops, etc.
6. Growth Potential
Every business needs to foresee growth periodically and would need to have a plan to be able to execute it. Location is also one of the biggest factors for a company’s growth as it accelerates opportunities and provides a platform for better reach.
So, while choosing a location one must make sure that their business placement is fail-proof and offers a bigger market for the growth of the brand.
The location factor is portrayed as the maxim in any kind of real estate based on which the price, popularity and even style of operation are being factored. So, picking the right location for your business becomes as important as maintaining your product quality or delivering customer satisfaction or even marketing your brand.
If you are in Bangalore and want to experience the prime location and hub of businesses, drop down for a free walkthrough of our space at Residency Road by booking a tour.
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