May 20, 2018

Entrepreneur: Location, Location, Location

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By Telford Aduda

Finding the right location for your business is key to your success because it may offer adequate access to customers, workers, transportation, materials, and so on. Location also plays a significant role in a company’s profit and overall success. However, finding the perfect location for your business is not an easy task.

The following factors should be taken into consideration while searching for that dream location.

Who are your competitors?
According to Greg Kahn, founder and CEO of Kahn Research Group in Huntersville, North Carolina, and a behavioral research veteran who’s done location research for Arby’s, Buffets Inc., Home Depot, Subway and other major and minor players, the best place to be is as close to your biggest competitor as you can be. “Foot traffic is obviously important, but landing the ‘perfect’ customer is far more crucial. By being in close proximity to your competitors, you can benefit from their marketing efforts.”

Though gutsy, being located near your competition can be a boon to business, provided you are confident enough in your product to outsell your competitors.

 

Your employees
Will your employees enjoy working at the location of your business? What will motivate them to work in that location? How far is it from their homes? Remember that the ability to attract and keep good employees will be affected by your location.

Strategic partners
While this may not seem like a big issue, the reality is that strategic partnerships happen more easily when the partners are local in relation to each other. When choosing a location for your business, you must also think of your partners. Are they willing to partner with you if you go to that location? Is the place accessible to them? Will they risk their investment in that area?

Would you partner with you if you opened a sports car dealership in the Kalahari Desert? If you wouldn’t, chances are no one else would.

Facility requirements
Do you have any special needs, such as high power consumption or specialized wiring? Do you need meeting space? You might consider a shared office suite in that case. The facilities that you use will also dictate the location of your business. For example, if you use water to generate power, then in this case, the best location in next to a dam, river or lake.

Safety
Security is a very important issue for both customers and employees. Nobody wants to work in an area where they will be attacked on their way back home, at work or as they receive service. You have to consider carefully the security in the area you are putting your business.

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