Determine a Location
Choosing a location involves a number of considerations. It is important to
take into consideration factors, which will affect the profitability of the company.
The choice of a location is more critical for some businesses than others depending
on whether the customer needs frequent access to the location. Even so, once
a business is established it is often very expensive and impractical to relocate
so taking the time initially to make a good choice is important. A few factors
to consider are:
Accessibility to your target market/customers
- Access must be convenient for target customers.
- Location should be close to niche market.
Business Environment
- Assess the competitive environment. How many competitors are near the location?
What is your competitive advantage? Is there a need for your products and services
in this area?
- Legal requirements
- Tax structure
- Local incentives
Availability of Resources
- Accessibility to Raw Materials
- Labor Supply
Costs
- Buying, building and renting, it is difficult to know which is best. Many
times it is better if start up companies rent. Renting a facility reduces the
risks and responsibilities of owning. Renting a facility also gives the company
time to grow and to assess what their long term needs will be. Lastly, by initially
renting a facility the entrepreneur avoids the large initial cash outlay, which
is required when purchasing a facility.
Demand for Sites and Locations
- Shared sites such as executive suites and business incubators can be helpful
as they enable entrepreneurs to begin their business with low overhead.
- Previous business success/failure for the location and area.
- Location incentives offered by the state or federal government may lure entrepreneurs
in with their promise of tax relief.
|
Location & Hours
850/644-3372