Choosing a location for your business can be very challenging. Many small businesses and startups choose cheap locations as a way to save some funds. Others believe that location has no effect as long as the product is right. However, this decision can have many consequences for your business performance. The wrong location may cost your clients as well as your employees. Furthermore, you have to take into consideration the future requirements of your company. Don’t think just about your current situation. Businesses develop and their needs change. So, don’t limit your business with a bad location. Here are some questions you can ask yourself before choosing a location for your business.
Is there room for my company to grow?
As already mentioned, when choosing a location for your business, don’t limit your search to your immediate need. Keep in mind that your company is likely to grow over time and at some point, you’ll need additional space. This can be dealt with in a couple of ways. Before you settle at the new location, you have to negotiate a lease. One option is to add extra empty space to your lease for future needs. If you can afford this extra space, try to negotiate a shorter lease. Additionally, you can add a clause to your lease that gives you the right of the first negotiation. This means if any adjacent space becomes available, your landlord will offer it to you first.
Is the office at the right location for your key employees?
Consider where your key employees live when choosing a location for your business. Think about whether this location is convenient for them. A long and expensive commute to work may drive them to look for employment somewhere else. A good option is to include your staff in the process of choosing a location. Let them weigh in and pick the right location together. This way, you won’t risk losing them. Furthermore, they will feel more appreciated and will most likely perform even better.
Before choosing a location for your business, think whether the location is convenient for clients?
In addition to your business’ location being convenient for your employees, you have to think about your clients. Ask yourself if the location is accessible to your clients. Transportation costs are on the rise and some people may not be willing to travel to a remote location to do business with you. You might be considering choosing a cheaper space in the suburbs as opposed to an urban location. In this case, decide whether the lower expenses will make up for the possible loss of clients. Additionally, think about whether cheaper rent is worth it more than those clients. Even though we live in a digital age where Skype and video conferencing are lifesavers, nothing is more important than making face-to-face meetings possible.
Does this location send the right signal?
The location of a business sends a message to everyone. Think about what signal you want to send. Your business’ location will be much more than an office space filled with cubicles. It also will be a sign to others how well are you doing. However, this is a fine line to walk on. If you spend too much on luxurious office space, the client will start to wonder if they are paying too much for their service. On the other hand, if you don’t spend enough, it might have the opposite effect. People will wonder about the financial health of your company.
What other businesses are nearby?
Before you buy or rent office space, check out the surrounding neighborhood. Choosing a location for your business should also depend on the amount of competition in the area. If there is a lot of competition, there may not be enough customers for you. Choosing the right amount of competition can keep a small business in business. On the other hand, if there are no similar businesses in the area, you won’t have customers stolen from you. However, this can be tricky. The lack of competition can also mean that there aren’t customers in the neighborhood. To avoid this, do an extensive market analysis to gather more information about potential customers and competition before you settle on the location.
Are there hidden costs you’re not considering while choosing a location for your business?
Don’t choose a location for your business without calculating the full cost. Rent, utilities, construction costs are the most common expenses you will have. However, there are other costs that may not be obvious. They are known as hidden expenses. Consider hiring a professional broker to help you understand your total price. You have to look at the costs associated with the move to the new location. Also, hiring professional movers to help you out with relocation should be added to the final price. Additionally, take into consideration whether you have to do some remodeling in the new space. Perhaps, you’ll need some new furniture. Even the restoration of an old space can be an additional expense.
What is the parking situation?
Another important thing to consider is the amount of parking available at the location you want. Also, think about the potential cost to employees and clients. If parking options are tight, is there another space where employees can park? Additionally, find out if you can reserve some of the more convenient spaces for clients. Negotiating special employee rates and validating clients’ parking tickets are always good ideas. However, they need to fit into your budget. Also, if it’s too costly for your employees to park, they might leave the company for more suitable conditions.
What is the necessary level of security?
Believe it or not, your location can increase your odds of your business being affected by crime. This, in turn, can influence your insurance premiums, along with security measures you may need to take to keep your premises safe. Knowing the potential security risks can help you better prepare and take adequate precautions. Furthermore, having this information on time can save you from a wrong decision.
Author’s bio: Joana Leusin is an experienced content writer with a BA in leisure studies who enjoys giving business and relocation advice. This is why number1movers.ca is the perfect place for her. Here, Joana can use her passion to help those in need of business guidance.