Choosing the Right Location for your Business

Businessman and question markChoosing the “right” space can literally be a make or break decision for your business. It’s a process that starts with your business plan. A solid business plan is the key to identification of the many diverse success factors that are relevant to your business. It also provides the basis for prioritizing the key drivers that will effect your business now, and in the future (more on business plan specifics in future posts).

With a solid business plan in hand you are armed to answer the primary questions in selecting your right location. It needs to fit with your financial planning, and needs to have the physical attributes that meet your company’s immediate culture and business needs as well as providing for anticipated growth.

LOCATION SELECTION CONSIDERATIONS

Some considerations of identifying the “right location” that you may want to consider include the following:

  • Bricks or Clicks: Is yours an on-line business model? To what degree will your customers be interacting with you on-line, vs phone, vs face-to-face? How will this balance change over time? Even if you are largely an on-line business don’t underestimate the liability benefits of having a professional location other than your home.
  • Who Are You: To what level will your location impact your brand? How will it define who you are to your customers? Do you require a professional presence, visibility to the public, parking for your customers and staff, and/or signage promoting your company presence?
  • How Will They Get to You: Will you be relying heavily on foot traffic? Will people be driving to your location? Do you have employees that take a bus to work or can your client ride a bus and get to and from your location effortlessly?
  • How Does it All Flow: Is the layout of the space adequate for your company’s operation? That is does the demised spaces flow the way your work needs to be accomplished? Most offices have a pecking order while most businesses have a system or cycle that the employees and customers flow through. Be sure to spend time on mentally matching people and products to the location and defining what happens when someone reaches the front door.
  • Your Location as Wealth Builder: It’s obvious that the product or service you sell is at the center of your financial plan. Don’t underestimate the impact your location can have on your bottom line as well. Be sure to give careful consideration to the options of leasing, buying, and building to suit. These decisions can have significant impact on your long term bottom line.

Discuss your individual business process in detail with your broker for another set of ears. They will be able to provide a specific perspective, and will be able to help select available properties and negotiate rates and terms for your future location. Also, don’t forget to incorporate the cost of moving and any tenant improvement required. Your broker will know sources of funding and usually know the limitations of landlord resources available to help with your move.

If we can be of help in making your move a success, give us a call at Axiom Commercial Real Estate at 253-473-5351

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