Small Business Location: A Hidden Factor in Success and Failure
Introduction
Location, location, location—this real estate mantra is not just for homes but also for businesses. The choice of location can make or break a small business. A poorly chosen location can doom a business to failure, while a well-chosen location can set it up for success.
One of the most important factors to consider when choosing a location for your small business is the visibility and accessibility of the site. Customers need to be able to find your business easily, so it’s important to choose a location that is well-trafficked and easy to get to. If your business is not easy to find, you will miss out on potential customers.
Location Decisions
Customer Base:
The first step in choosing a location is to identify your target customer base. Who are you trying to reach? Once you know who you are trying to reach, you can start to narrow down your location options. For example, if you are targeting young professionals, you will want to choose a location that is close to where they live and work.
Competition:
It is also important to consider the competition when choosing a location. How many other businesses are in the area that are similar to yours? If there is a lot of competition, you will need to find a way to differentiate yourself from the other businesses in the area. You can do this by offering a unique product or service, by having a lower price, or by providing better customer service.
Affordability:
Of course, you also need to consider the affordability of the location. You need to make sure that you can afford the rent or mortgage payments, as well as the other costs associated with running a business in that location. The table below shows the average expenses associated with leasing commercial space in different parts of the United States.
| Region | Average Cost per Square Foot |
|---|---|
| Northeast | $30-$50 |
| Southeast | $20-$30 |
| Midwest | $15-$25 |
| West | $25-$40 |
Visibility and Accessibility:
As mentioned above, visibility and accessibility are two important factors to consider when choosing a location. You want to choose a location that is easy for customers to find and get to. This means choosing a location that is on a well-trafficked street and that has plenty of parking.
Future Growth:
It is also important to consider your future growth plans when choosing a location. If you plan on expanding your business in the future, you will need to choose a location that has the space to accommodate your growth.
Landlord:
Finally, you need to consider the landlord when choosing a location. You want to choose a landlord who is responsive and easy to work with. You also want to make sure that the landlord is willing to work with you on your lease terms.
Conclusion
Choosing the right location for your small business is a critical decision. By taking the time to consider all of the factors discussed above, you can choose a location that will help your business succeed.
Are you interested in learning more about choosing the right location for your small business?
