Perhaps the best-known real estate adage is “location, location, location.” There is a reason that location is still the most important factor in business. This is true, even in the competitive era of tech and virtual office space. This week, we explore the importance of business location. Read on to learn why location is so important as well as what factors to consider when selecting location.
Why Is Business Location So Important?
There are many things that business owners can change about their current workspace. Want faster wifi? Install some. Want the building a different color? Paint it. Want to demolish the entire thing and build a new structure? Go right ahead!
However, no business owner can pick up their current plot of land and move it to the ideal location. The physical location of a business cannot change. It is something permanent and unchangeable. If a business wants to move, they have to buy different land or office space.
Additionally, location impacts a wide range of factors for a business. From clientele to rent costs, location is key.
What To Consider When Selecting A Location
How Much Space Do You Need?
A business such as Ikea needs a wildly different space from a mom and pop restaurant. Consider the physical size of your business’s footprint. Don’t forget to factor in things such as employee and customer parking.
What Can You Reasonably Afford?
The exact perfect location may very well be out of your price range. Sometimes entrepreneurs must compromise to meet a fiscal reality. That street corner downtown is going to cost you big bucks. The vacant lot in the middle of apartment complexes is going to cost less. Can you succeed in the second space? Carefully consider all factors.
What Is Your Ideal Clientele?
A small deli who relies on a heavy lunch crowd needs a specific location that allows access to the lunch rush. A high-end spa aimed at top CEOs can either be located in the city center for convenience or far away in nature for true relaxation. However, a suburban location probably does very little for the spa. The ideal customer is a huge deciding factor on location.
How Does The Location Impact Employees?
Do people have to spend hours and hours commuting every day? Is there convenient parking for them? In a city that is difficult to drive in: are you near a public transportation stop? Unhappy employees lead to more difficulties for the business owner, which nobody wants. Additionally, sleepy employees have a similar negative effect.
Another huge consideration for employees is their break times. Are there restaurants and cafes nearby that cater to their lunch needs? Even more importantly, is there a place to get coffee or tea? Always factor in your employees, they matter too.