When you start a business, a lot is going on in those early days of excitement. There are products to be developed, services to refine, and marketing pitches to be written before you get things off the ground. But for some businesses, there is something even more important than all of that: location.
To understand the reason why let’s take a scenario where you have worked hard on your business plan, and it’s looking razor sharp. You have investors ready to spend serious cash on your business, the product is perfect, and all you need is customers. But then, you move into the middle of nowhere, hundreds of miles from any of the vital connections you need to make your business a success.
Sure, this is an unlikely scenario, but even when you scale it down a little, it’s easy to see where things might go wrong for business – purely through choosing the wrong location. Let’s take a look at some of the issues you might face.
Access to customers
Although globalization means you can access almost any market, it doesn’t mean you should. It’s still vitally important to be close to your clients – particularly if you are selling products. Don’t forget, when you have to pay a fortune for delivery costs, it can have a significant impact on your cost per sale, meaning you will be up against it when it comes to challenging your rivals who have aggressively low price points.
Access to suppliers and supply routes
Another thing to consider is being close to your suppliers. Again, this will reduce your costs and minimize your provider’s delivery charges. Also, think about locating your business in an area close to major supply routes.
A professional image
Who would you trust more? A business that is run by someone who works from home in their pajamas, or one that has a professional office in an upscale part of town? Yes, it is more expensive locating in a popular area than setting up in somewhere with a high crime rate. But there are ways and means of making it work for you. For example, you can save costs by buying some land and erecting temporary offices or steel buildings. You might also find a cheaper alternative just off the main drags of accessible areas. Don’t forget, if you can get close to well-respected brands in your industry, your audience could start to perceive you as cut from the same kind of cloth.
The best talent
Finally, don’t forget about the people you employ for your business. Being near talent means you will be more likely to access it. Given a choice between you or your rivals, who do you think prospective employees will pick? A business that is a short hop away from where they live, or one that involves an expensive commute every day? So, always consider the local labor market before setting up a business anywhere.
Have you got any tips or advice for business owners wanting to move to a new location? Feel free to leave your thoughts below!