The location of your business is incredibly important – choosing the right location could really maximise the profitability of your business. It’s important that your location fits the purpose of your business and that it maximises the chances of exposure to the target market. A budget for your business premises is vital in any good business plan. Expenses such as council tax and utilities should also be taken into consideration. Therefore the size of the premises is important and also the price.
I’ve put together a few things you should bear in mind when picking a business space.
Location, location, location! When choosing your location be sure to conduct some target market research. Find out the locations where your crowd is most likely to visit and shop. Does your business make sense in that location? A carefully considered location is vital if your business is to stand the best chance of succeeding. That’s not to say that when it comes to location, you shouldn’t be afraid to think outside of the box. Don’t be afraid to be the new kid on the block or the first business of your kind anywhere. If it makes financial sense, will serve your customers and you see potential in a neighbourhood, do your research and be the first to buy into a new area. How does that saying go again? “If you build it, they will come”.
If you’re looking for a business space for manufacturing, storage purposes or even a distribution centre, always remember to consider every option and don’t be afraid to think outside the box.
Most spaces are leased per square feet or other size based consideration so ensure that you do not pay for space that you do not need. Are you able to conduct several aspects of your business from one location? If so, then go for it. Save on space and costs by thinking outside the box when it comes to utilising space and getting value for your money.
Fit for purpose
Does the space make sense for the type of service that you will provide? If you’re opening your first beauty salon or patisserie, will you need extra storage space? Does the space need to be accessible for frequent deliveries or collections? Different businesses have different requirements so it is important to consider what kind of equipment you will need to utilise and what’s necessary so that you are able to do whatever it is that your business requires.
Consider alternative locations and be creative. London is so diverse and quirky so if your business is based here then feel free to be as creative as possible.
Is your business going to have sufficient cash flow to sustain your rent, utilities, insurance, any repairs and maintenance, wages or any other type of expenditure? These are all necessary expenditures so any financial commitment needs to be carefully considered within a detailed cash flow forecast (which should cover a minimum two year prediction).
When making any major investment, you should always consider the financial viability of any proposed venture, you need to know what your business will be doing and when it is expected to do so. Is your location about to undergo any significant change which might affect the level of foot traffic or introduce other competitors? If your business depends on support from the local community; does the local community have a stable economic base where your business could potentially flourish?
I hope these questions and suggestions are helpful. Just remember that whatever space you choose should reflect your brand’s image in the way that you want it to.