LOCATION, LOCATION, LOCATION
What are the three most important factors when starting a business? Some will tell you it’s location, location, and location. In many ways, it is true.
The spot you choose has a significant impact on the success of your business. That is especially true if you are a service business like a restaurant or a store, but also true for factories and business-to-business firms.
FACTORS TO CONSIDER
There are many factors to consider in terms of choosing a business location, each of which will impact your success and decision-making.
Every brick-and-mortar business needs customers, inventory to bring in, and products to deliver out. That means customers, salespeople, employees, and suppliers need to be able to find you. They need easy access, which may require nearby parking or closeness to public transit. Also, to ensure clients can find you, be sure to keep your physical address up to date on your company’s website.
Your location needs to be safe and attractive if you want people to feel comfortable patronizing your business. If your site or the building is unsafe, prospective workers might be inclined to choose other employers.
Your shop or factory takes off, you may need room to add space for offices, services, and manufacturing, all without losing your parking and loading areas. Are there empty lots next to the property or ample rental space to expand?
You need to stay legal. That means your product or service fits the municipal building codes and legal zoning requirements for the area. Your building must meet the standards for the neighborhood. The amount of traffic you generate must not overwhelm local roads and available parking.
Setting up a business at a new location or moving there involves tax implications. Make sure you can afford the taxes imposed by owning a business. Seek the advice of a lawyer and an accountant to figure out what to expect from local, state, and federal taxes.
POINTS THAT IMPACT YOUR BUSINESS
When deciding on a location, some things can have a significant impact on the success of your business.
Who is your target audience? You want to select a location that makes it easy for them to find you. For instance, if you operate an upscale salon, you may want to choose a building in a trendy section of town or in a luxury hotel or office building.
Business-friendly local government
Do the local and state governments offer incentives for setting up shop in a particular area? Do local laws, taxes and zoning regulations favor small businesses? You can nurture growth much more easily in an environment that is friendly to your company. Ask the local chamber of commerce for advice. Find a small business specialist to guide you through any confusing laws and regulations.
Unless you are a one-man band, you need to consider how easy and affordable it is to attract the right type of employees. If your business requires particular kinds of skills, be sure the local area can supply your needs at the pay you can afford. Make sure workers can get to your business easily via public transportation.
Where you set up your business can be the make-or-break decision for future success. Put the time into considering all the factors. Research more than one spot. Confer with your accountant, lawyer, the local chamber of commerce, and other local business resources. Talk to business people in the same area. The more research you conduct, the better chance you have of finding a profitable location.
If you’re interested in learning what we can do for your business, contact a Relationship Manager to discuss your business needs and the solutions BancorpSouth can offer. Contact Us or Find a Location near you.
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