You can never ignore or underestimate how important site selection is for your business. You can have the most in-demand product or service on the market, but if your business is located in the middle of nowhere, it’s safe to say that you’ll struggle to make money. An ideal business location will depend on the nature of your business and your target market. But before you settle with any site, here are a few things you first need to consider.
Decide on your type of location
Before anything else, you need to decide what type of location will meet your business’s needs. Your site selection comes from five main types of places: industrial, commercial business space, home-based business, mobile business, retail business. An industrial site will work well for manufacturing and distribution businesses that require large warehouse spaces. A commercial business space will be ideal for companies that do not need high consumer traffic as a retail business does.
Proximity to the market
Is site selection important for your target market? In other words, the closer you are to your customers, the greater the possibility of them returning to do business with you again, which is essential for customer retention. So, before you decide to set up shop, take the time to identify who your ideal customer is and where you can find them. For instance, are you looking for an end customer? Or are you looking to provide materials to other manufacturing businesses?
Your style of operation
Are you looking to set up an elegant, luxury business? Is your business going to be a formal small-sized one? Site selection should be consistent with the style, image, and reputation a particular site has, determining the types of consumers you can expect there. And speaking of style, the following point is also crucial.
When looking at the real estate market, site selection can attract the rich and powerful, and renting business spaces in such areas can cost you a fortune. But, despite that, you also need to consider other smaller or hidden costs of picking a particular location, from utility costs, renovation expenses, tax policies, minimum wage requirements, building permits, vehicle licensing, and other economic policies.
You might also want to consider the state of the building and how much it may cost in your repairs and maintenance projects. Ensure that the building is made from strong, durable, and offers long-lasting structural integrity. For instance, you’ll find that structures that come with steel frames and colorbond roofing cost much less to maintain. Getting a proper knowledge of all the expenses you can expect will help you avoid tying yourself down to unfavorable financial commitments.
Your location can increase your risks of being affected by crime, affecting your insurance premiums and costing your business a lot of money. The first has to do with the crime rate in that location, and the second angle should be about the security of the building itself.
When considering a new business, site selection may be the most important consideration.