Grow My Business
How to Choose the Right Location for Your Business

When choosing a business location, there are many important factors to consider in your business plan. Each aspect must be vetted from various angles. Here’s a cohesive checklist of the most important factors to consider when growing a business via a new location.

Security
Security is a critical factor when selecting your new business location. If you're in a higher-risk area, it can negatively affect your insurance premiums, and you may need to factor in additional security measures like bars and cameras to protect your premises and goods. It’s also wise to conduct due diligence on the area’s crime statistics. Speak to neighboring store owners and question the landlord about existing security measures to ensure the safety of yourself, your staff, your store, and your customers.

Style and Demographics
Image is important in retail, extending beyond your brand and goods to your location. For instance, if you're a youthful fashion retailer, you'll want to attract the right demographic, which means situating yourself in areas where your target audience frequents. Consider options like a pop-up store or food truck, allowing you to test various markets before committing to a long-term lease.

Traffic and Accessibility
Most retailers rely on high foot traffic. It’s crucial to be visible and in a highly frequented area. Corner stores often have more window space and visibility from multiple angles, making them desirable locations. Some retailers, like dry cleaners, prefer spots near entrances for convenience, while others, like toy stores, need to entice passers-by. Accessibility is vital for customers to find you, park, and fit you into their shopping routes, as well as for retailers with large delivery and loading requirements.

Competition
Having competition in your location isn't necessarily a bad thing. A variety of choices can make an area a destination for customers, especially in entertainment or dining zones. However, be prepared to elevate your marketing efforts in competitive areas. Some retailers, like pharmacies, may prefer to be the only option in the vicinity to avoid competing directly for business.

Infrastructure
Older buildings may lack the infrastructure needed for modern processes and technology. Ensure that the property has adequate electrical systems, fiber lines, and generator capacity to meet your current and future operational requirements. It's advisable to hire an engineer to conduct a thorough check before committing to a lease.

Potential for Growth
Consider whether the location can grow with your business or if it's merely a short-term solution. Relocation can be costly and exhausting, so ensure that your lease and location align with your long-term goals.

The Bottom Line
The right business location is a blend of information, entrepreneurial intuition, risk assessment, probability, and a bit of luck. While the perfect location varies from business to business, it's essential to think about this decision from all angles and remain as objective as possible. By considering these crucial factors, you'll give your business the best chance for future success. Once settled, you can integrate this new location into your plans and focus on growing your business.