Your business’s physical location can make or break its success. Choosing the perfect business site ensures ample foot traffic and brand visibility. Here are a few important considerations to help you choose the perfect business site.
Budget
Choosing an ideal location requires considering your budget. Whether renting or buying, business locations in busy downtown areas will be more expensive than less frequented rural areas. Consider how much you’re comfortable paying each month. Larger buildings will also cost more, not only in rent but also for utilities.
Some properties may offer business owners discounts for longer contracts. Planning ahead and creating a business plan can help you better understand your short and long-term goals, which may allow you to qualify for these types of discounts. Remember, a business located in a more difficult space may require a more expensive digital marketing campaign to bring traffic to the location.
Target Market
Pinpointing your target market can also help you choose the right business location. For example, if you’re opening a coffee shop, you may rely on foot traffic from nearby colleges or business offices. Restaurants tend to do well located nearby other restaurants. Retail is typically best situated nearby other retail locations. When choosing the best site location, you’ll also want to consider your product, its average cost, and your target market.
Zoning Rules
Different cities and provinces have varying zoning rules. This means you’ll need to choose a location that’s zoned for commercial purposes. Additionally, you’ll have to choose a business space that’s zoned specifically for your type of business. For example, some commercial spaces may only allow retail, whereas others allow for restaurants or grocery businesses. Industrial businesses often require a special industrial or warehouse space.
It’s also important to note that zoning and licensing requirements may vary between cities. The business licensing requirements for a restaurant business in Toronto will vary from those in Edmonton.
Business Space
Of course, the setup and layout of the business space are also important to consider when choosing the perfect location. You want to choose a building that meets your layout and sizing needs. Restaurants require kitchen space, storage, and customer seating. Retail requires ample space for shelves and racks, plus abundant storage space.
Choosing a space that is already designed for your business purpose is typically cheaper. However, some landlords are willing to outfit a blank office to meet the needs of certain business owners as long as they’re willing to sign a longer contract. Don’t forget to consider your future plans. If you own a retail business and plan to expand to new products in the short term, you may want to choose something with more space now.
Nearby Competitors
You’ll also want to evaluate what businesses are already in the area through a detailed competitive analysis. Opening an American-themed restaurant in the same building as an already established one may split business and affect revenue for both owners. Opening a kid’s clothing store in the same shopping complex as a kid’s resale shop may not be the most profitable business decision.
You can also consider businesses that may complement already existing ones. For example, if a shopping complex already has a popular lunch spot, you might consider adding a coffee shop next door. A restaurant that only serves dinner may pair well in the same building district as a brunch restaurant that closes before dinner.
Business Incentives
Some smaller cities may be willing to offer incentives to business owners who bring certain industries to the area. Inquiring about these incentives can be a great way to offset the costs of opening a new business. Some incentives may offer discounted rent for a shorter period of time. Others may cover a small portion of the building utilities. You may also find discounts or rent incentives in newer buildings that have yet to be established.
Building Accessibility
Building accessibility is another important consideration in choosing the perfect location. You want to choose a business space that’s relatively easy for your customers to visit you. Customers who have to pay for parking and walk a long distance are less likely to frequent your business.
Businesses with ample parking and a short walk to your storefront are likely to stop in more often. You’ll also want to consider nearby roads, traffic lights, and parking conditions. Coffee shops are an excellent example of a business based on convenience. Customers are likely to choose a competitor if you don’t have a drive-thru or easy pick-up options.
Building location is a key factor when it comes to business success. Whether you’re opening a small restaurant or retail shop, you’ll want to choose a location that’s easy for customers to access, that fits in with your budget, and is laid out to fit your unique business needs.
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