If you experience success as a business owner, you may be inspired to expand your horizons and increase profits by opening an additional store in a new market. Be careful to interact with the location selection process in exactly the same way you did with your first business. If you do not think carefully about your decision, you may run into problems down the road.
When choosing your next position, there are several things you need to think about in order to set yourself up for success. For example, does location population reflect your target audience? Are you looking for a large plot for a manufacturing facility or a small site for an office building? Where are your competitors located? By answering this kind of question, you can get a good idea of what you are looking for.
Here are four key considerations to help you choose the best location for your next business opportunity:
1. Workforce development
Your workforce will be an integral part of your company. For example, considering the opportunity to develop a workforce can help you go home to a specific place. Does the local economy, for example, support affordable housing and a reasonable cost of living? Will employees have access to schools, museums, parks and playgrounds?
Although you may plan to rent remotely, it is important to consider what your business needs. “Even with the rise of remote work, your business expansion plan should be a factor in the potential pool of potential areas,” wrote Subas Elias, CEO of the Missouri Partnership, in a chief executive article. “Some roles can be performed from anywhere, but you may need local employees who can travel to your new location during the working week.”
So think about what qualities your future employees want to have. Do they have to be creative? Flexible? Innovative? Should they share the same vision and goals as your company? Search for locations with a workforce lined up with your ideal staff. If you find a community that is a good fit, then your hiring and hiring time will be easier
2. Your business model
Another important thing to consider is your business model. What do you need from the point of view of daily operation? Matt D’Angelo, a small business freelance writer, cites this example: “If you work in the industrial sector, or you run a business that supplies large quantities of goods, choose a location with warehouse storage and easy delivery. Options for Clients and Customers A business that specializes in shipping and packing needs specific structural facilities, such as loading docks.
You should also evaluate the infrastructure of the locations you are considering Are you looking for an existing building? Does it have the potential to support the high-tech needs of your modern business? Does it have central air, heat and coolness? Stairs and an elevator? If you are considering building on a new site, is there enough space for parking? Will it be easier for employees, customers and refiners to reach you? Is the site certified and “shovel-ready”?
Ultimately, you’ll want to look at the success or failure of previous businesses in the same position. If multiple businesses in the same area fail, you should do some research and find out why. If there is a chance that you may fail for similar reasons, you may want to look elsewhere.
3. Hidden costs
Your location must fit your budget and include any hidden or surprising costs. An enterprise league blog says, “You might think that is not to say, but the rental price is not something you have to consider when it comes to money.” “When choosing a business location, you must consider the hidden costs of doing business. Reforms, taxes, utility upgrades, minimum wage requirements, and economic incentives are costs that can increase your costs or save you some money.”
The hidden things that can cause your startup costs may vary depending on the location. For example, local business and property taxes will vary by state. You may have to navigate unexpected renovations or building costs, such as installing a water softener system if the area’s water supply contains too many minerals. If you choose a notoriously expensive area, you will probably have to pay a competitive rate to the staff. After all, 67% of full-time employees in the United States expect their salary to be a cost factor of living.
4. Advertising and marketing are required
Location can be a factor in your marketing and advertising costs and plans. The way you market your business will vary based on the population of your area, such as age, gender, occupation and family income. If the community is not a good target audience for your business, you may need to spend more on marketing or rethink your position.
It is also important to think about places in terms of scalability. If you are located between a few other stores or on the 20th floor of a high-rise building, it will be difficult to attract customers.
“You can find a business location that is not convenient or high-foot-traffic location,” says a ZenBusiness blog. “If so, you may have to pay. This may require additional marketing so that customers know where and how to find you. Online business listings, print ads, websites and social media platforms are all helpful tools.”
If you are thinking of expanding your business, you are heading towards a very exciting time. But before you choose your next position, it is important to consider what workforce development opportunities are available, what your business model needs to succeed, what hidden costs may pop up, and how a position can affect your marketing and advertising plans. Once you consider these issues, you will be in a better position to choose the best location for your business.