30 December, 2019
5 Tips to Find the Perfect Location for Setting Up a Business
Are you in the midst of your business setup? You have probably gone through all the details, and outlined everything in your business plan. The funding is ready, and all that is left is to figure out where to set up your business.
Finding the perfect location for company formation isn’t an easy decision. Different businesses have different factors to consider, all of which may either make or break your business. To help you find the best location for your new business, here are the key criteria you should consider to help you out.
1. Follow your Target audience
Before you even begin looking, a good place to start would be to do some research to come up with a few options. When you gather information, you might want to look at different areas of your city. Most importantly, consider the main demographic as to what your target audience is. You wouldn’t want to complete your business setup in a retirement neighborhood when your primary target audience constitutes young adults.
2. Keep track of other businesses around
If you want to be in a popular area, there will be other businesses around you, and that’s okay. Completing your company formation in a location along with others that compliment your service or product can actually work in your favor. A customer may be at one store and realize that they could use something from yours. Also, some of the other businesses may become your own customers or your vendors.
3. Consider Your Competitors
As you look around, make a note of where your competitors are. There are a few reasons behind this. To start, if you and your competitor are side-by-side, it could be hard to grow your customer base, especially if your competitor already has many loyal customers. Moreover, if your business setup is being done in a larger city, then going to a different area from where your competitors are could open up more customers for you. In the case of service-based businesses, this would apply for key sectors that you wish to place focus on.
4. Think of Growth
Although you want to find a spot that works for you right now, you do want to consider what the future looks like too. This is when your business plan comes in hand. Do you plan to expand your business as it grows? If so, do the locations you’re looking at allow you to expand, or would you have to move to a new spot? Your company will likely look a lot different five years down the road than what it is now.
5. Do You Buy or Rent?
A question to ask yourself is whether you should rent a building or buy. Each option has its perks and downfall. When you rent, you have less responsibility for the building, and it is an inexpensive option. The landlord typically takes care of a lot of the maintenance, freeing up time and even money on your end. However, you have to go through your landlord for any changes you want to do. Buying a building is a more expensive option. If you end up moving or shutting down, you’ll have to sell the place. Some businesses do not warrant a purchase of an entire facility and you would be smart to avoid this option if you fall under such a category. When you buy though, the building gives you more freedom to work on it however you please.
In short, where you complete your company formation is important, especially for a start-up. You want to go to an area that you’ll be noticed, without breaking the bank though. Do the research ahead of time so that you can find the best location for your new business. For advice and consultation on business setup, do reach out to us for further assistance.