How to Choose a Business Location

If you’ve been thinking about starting a business for a while, chances are you’ve got an idea of what your business location is going to look like.

That’s great, but it’s not enough.

Choosing the right location is about so much more than finding the place that looks closest to the one you’ve envisioned.

It’s about being somewhere your customers will see you, about being in a competitive location, about staying within budget, and about meeting local and state regulations and laws.

In this article, we’re going to review the things you need to keep in mind when choosing a location; offer you advice on where to look for a business location; and also provide you with a few resources we think you’ll find useful as you work through the process.

. Things you need to keep in mind

General considerations:

Before you get into the nitty gritty details of choosing the location, consider the following:

• Where is your target market located?
• What image or brand do you want to convey?
• How do you fit in with or stand out from your competitors?
• How close do you need to be to suppliers?
• What kind of neighborhood do you want to set up shop in? Is safety very important?
• Will you easily be able to find employees?
• Is your area business friendly?
• Do you have access to an engaged community that is eager to help?

Financial considerations:

• Will you have to do extensive renovations before you can move in?
• How much are property taxes? How much is income and sales tax? Balance them out. Could you pay less by choosing to start up in another state?
• Can you afford to pay your employees at least the minimum wage?
• Do you qualify for any government economic programs or incentives? Might you qualify somewhere else?

Legal considerations:

• Can you legally conduct your business in this area?
• If you want to make renovations or changes to the building, are there any legal restrictions?
• Are you going to run into restrictions because of zoning laws in your area or location?

  2. Things that could impact your search for a business location

  Before you begin the “hunt” for the perfect location, it’s worth knowing a little bit about how zoning laws may affect you.

  Zoning laws and setting up shop:

  In terms of where you can legally operate your business, you should consider local zoning regulations and ordinances. These will affect your ability to make changes to property you purchase; and indeed, to purchase it in the first place. They will also define how various properties can be used and could place restrictions on things such as the height or size of a structure.
  In general, property is zoned either for commercial or residential use. This stops businesses from building in residentially-zoned areas, and vice-versa.
  The best thing to do to find out how property in your area or city is zoned is to contact your local planning agency. You can also look to an attorney for help through the process.
  If you’re operating a business out of your own home, many of the same zoning laws will apply to you. Common restrictions may include: limiting or prohibiting signage related to your business outside or on your home; making exterior changes to your home that relate to business activities; and traffic-related restrictions, as well as noise-related restrictions.
  Depending on your city or council, you may also be required to obtain a Home Occupation Permit. Here’s an example permit for the city of Winston-Salem in North Carolina.
  It’s also worth remembering that if you rent your home, it may not just be zoning codes you have to contend with. Often, landlords will have a clause in a lease stating that the property may not be used for commercial purposes. In this case, if you break the law, you risk not just having your business shut down, but getting evicted.

  . Where to look for a business location

  Knowing what kind of location you want and what you need to consider is all very well, but where do you go to find a physical business location?

  A few of your general options include:

• Your local SBDC
• The local Chamber of Commerce
• Craigslist
• Walking the neighborhood keeping an eye open for rental signs
• Commercial real estate agencies