Finding a small business location is an important endeavor for many entrepreneurs. Location can make or break a business. To choose a place that has the best chance of helping your business prosper, carefully consider the following three factors:
To determine if a particular area represents a good opportunity, review its demographics. Look into what the locale's primary age, gender, or income level is, or research other demographics relevant to your particular business. Reviewing these demographics can help you determine the size of your prospective market and whether you'll reach your target customers. For example, someone planning to open a small assisted care facility would research the number of senior citizens or adults approaching 65 who live nearby. He or she could also check income levels to see if the general senior population can afford assisted care.
Competition is another important aspect to consider when choosing a small business location. Sometimes, finding success in a market can be challenging, depending on how quickly the prospective industry is growing. For example, as the baby boomer generation plans to retire over the next several years, the assisted care industry is projected to grow. Further, the competition in this industry is already "very high," notes SBCDNet. In this case, obtaining the best possible location, perhaps in proximity to a hospital, could help someone who runs an assisted living facility outpace the competition. The business will attract more customers because its location better meets their needs. If the owner plans to open the assisted care business near another competitor, he or she should research the competition to ascertain whether the quality of care and customer service you plan to offer will be better than your competitor before settling on that location.
3. State Laws
Many states have laws business owners must follow when operating in their jurisdiction; laws can also vary by industry. Using the assisted care facility example, the potential owner will need to obtain any state-mandated licenses and certifications before opening the business. Because state regulations vary, small business owners need to decide whether their businesses have the capability and expertise to comply with all regulations set forth by state. A business planning to deliver senior care may start this process by checking with the state's department of human services.
Regardless of the particular industry or line of business you plan to pursue, by keeping these three factors in mind, you can better position your business in a location that will best fit your needs and desired goals.
SIGN UP FOR THE THRIVE NEWSLETTER