Starting Your Own Business: Choosing a Location

by Shenron on October 29, 2009

Last week in this segment we went over how to get a plan together for your business. This time around we’re going to take a look at the next step. But, before we get going, don’t take this as a definitive guide that you should follow to a tee. In the case of this guide for instance, not every business needs a location to conduct their daily affairs. Many times a business can be run from home just fine depending on the type of products or services you’re selling. This article is directed more towards people who are actually selling something and need a storefront to do so. Having said all of that, let’s get started.

Business location Starting Your Own Business: Choosing a Location

1. Market Research: If I could make this point triple bolded and underlined, I would. Market research is at the top of the list in terms of things you need to do to ensure your business is successful. You may have the best idea in the world but if you try to sell those cute new animal salt and pepper shakers from a booth on the outskirts of town between the unemployment office and a farm, you’re not going to do so well. When you think you’ve gotten enough information about your clients, keep researching. The steps for conducting proper market research are too lengthy to include here but you should be able to find out some valuable info online with a quick Google search.

2. Budget: Assuming you’ve found the best part of town to start your business, you’re ready to move on to the next step; budgeting. A crucial part of your market research and planning stage is to figure out how much money you plan to be bringing in each month. If you are unable to bring in enough money to pay the bills then obviously you’re not going to go anywhere. It’s OK to rely on savings for the first few months while you build a client base but if you’re not netting a profit after a few months, enough to pay the rent on the location you find, it’s time to reevaluate. Considering the current state of the economy, finding a place to start your business for a relatively small sum of money shouldn’t be too difficult. And even if you find the perfect place and think it’s a little too expensive, see if you can whittle the price down as well as the rent. People are flexible these days.

Business location 5 Starting Your Own Business: Choosing a Location

3. Legal: Depending on where you decide to plop yourself down and set up shop, you may run into some legal implications. Each and every area of a city is zoned as either commercial or residential and each of those categories is divided even more. Before you put any signatures down onto a lease agreement or mortgage agreement, talk to an attorney about the implications of the zoning of your potential property. They may or may not affect your business practices for the location. The best case scenario is that everything will go smoothly and you can sign on the dotted line, but if you sign before you find out everything about a property, you could be in a heap of trouble.

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