With Amazon’s recent decision on the new location for their business, here are some aspects to consider when making a similar investment of your own. The location should be consistent with your particular style and image. If your business is retailing, do you want a traditional store, for example? Or would you like to try operating from a kiosk or a cart that you can move from place to place?
Consider who your customers are
Demographics play an important part in your choice of location. Consider who your customers are and how important might be their proximity to you. For a retailer and some service providers, this is a critical consideration. For other types of businesses, however, it might not be as important.
Research and review the community to establish whether there is a sufficient percentage of that population that matches your customer profile. Do however think about communities that are largely dependent on a particular industry for their economy, as a downturn could be bad for business.
In addition, consider the work force skills required. Are there people with these skills in the community, with sufficient housing, schools, recreational opportunities, and culture?
Foot fall, traffic, and parking
If you are a retail business, then consider where shoppers are likely to pass by, rather than being hidden away. Monitor traffic outside of the location at various times throughout the day and assess how accessible the facility will be for customers, employees and suppliers.
If requiring deliverables, establish whether suppliers will be able to easily and efficiently courier. Be sure that there is convenient parking for both customers and employees. As with foot traffic, take the time to monitor the facility at various times and days, to see how the demand for parking fluctuates.
Competition and other services
Are competing companies located nearby? Sometimes that’s good, such as in industries where comparison shopping is popular, as you can catch the overflow from existing businesses. If a nearby competitor is only going to make your marketing job tougher, look elsewhere.
Consider what other businesses and services are in the vicinity, whether there is any benefit from customer traffic, and whether there is a suitable range of places and restaurants for employees. You might also want to think about the location of other facilities nearby, such as child care, convenient shops, etc.
Infrastructure, utilities and costs
Check that the building has the infrastructure – adequate electrical, air conditioning, and telecommunications services – to support your business requirements and to meet your present and future needs. For utilities, check what is included in rent, as this can be a major part of the expense.
Lastly, verify the medium- to long-term rental expectations and commitments, so as to mitigate any rental rise.