When starting or relocating your business, you will look at many factors that surround the location. These factors will contribute to the success of your business in a particular location.
Many desirable locations come with a higher price tag, so be sure to weigh the pros and cons of each potential location. Once you have decided on a few locations, you will need to do your research.
Population and competition
The best location for a small business is one with little competition in a larger population. By placing your business in an area with little to no competition, you will ensure that all potential customers will at least try your company before going to a different location.
These locations typically have a higher tax rate for property, sales and income.
It is important when looking at locations that you check the accessibility to your shop. Having a great population is no good if the storefront is difficult to get to. It is important to have plenty of parking for your customers, as well as have the parking lot be simple to get in and out.
Be sure that those with difficulty walking or in a wheelchair also can easily access your building. These issues are typically addressed at the time the structure is built and overseen by local and state laws.
When choosing a location, you will want to look at both the tax rate you will pay, as well as the rate of potential customers. Many business owners will overlook the tax rate of potential clients until it is too late. Placing your business in an area with a high income or sales tax rate can be detrimental to your potential profit.
When the tax rates are higher, more people struggle to afford the necessities. If you are still interested in placing your business in a location with a higher sales tax rate, you may need to consider lowering the prices of your product or service. This will help to compensate for the higher tax rate.
Cost of living
One way to tell the financial strength of an area is to look at the number of people who rely on payday loans. Payday loans are short-term cash advance loans that require no credit check and are designed to help those in financial strain pay immediate expenses. If the population of the area you wish to place your business is relying heavily on payday loans, you may struggle to get the customer base you need.