5 Ways the Location of Your Business Can Impact Your Success
Many factors can play a part in where you decide to establish your business. As you make your decision, you’ll probably consider the commercial property type, amenities, neighboring buildings, and lease terms.
While these form a major part of the decision-making process, location should get even more attention. Beyond the obvious factor of placing yourself within easy reach of your target market, the location of your business can impact your success in some fascinating ways. Below, we explore five of the most powerful influences your location can have on your daily operations.
Business Zones
Whether you’re renting commercial property in Melbourne or an executive office in New York, zoning can make all the difference. Your business premises’ specific zoning might impact the business activities you’re allowed to participate in.
There are many different zones in the United States, including:
- Residential
- Commercial
- Agricultural
- Industrial
- Mixed-use
- Public-use
The laws surrounding zones can impact building placement, signage, building height and size, and how you use the building. It’s important to remember this when you start looking for commercial properties to rent.
State and Local Taxes
You might know that you’ll need to pay state and local taxes no matter where you set up shop. However, what you’ll pay can depend on your business location.
Some states create tax environments that are extra friendly for specific companies. That’s why you’ll find concentrated groups of manufacturing businesses, tech startups, and financial corporations in certain areas. You can find more information about taxes for specific areas on state and local government websites.
Competition
Whether you’re a new or well-established business owner, your competition will likely factor into the decisions you make. It certainly factors into the location you choose, but perhaps not in the way you thought.
Setting up your business near your competition can sometimes be an excellent idea, especially in retail, where shopping hubs attract more customers than standalone businesses. However, if you’re trying to gain market share, it can be in your best interest to look for a commercial space where you’ll be the primary server in that area.
If there’s a commercial premises you like the look of, walk or drive around it to see the other already well-established businesses. You can then decide whether there’s room for your enterprise to thrive.
Government Incentives
Where you choose to launch your business can often impact the government incentives you’re eligible for. For example, companies that open in historically underutilized business zones can often qualify for set-aside contracts and a 10% price evaluation preference in contract competitions. This incentive is available under the HUBZone program, which was established by the Small Business Administration to fuel small business growth.
You might also be eligible for special tax credits and financial incentives related to job creation, urban redevelopment, energy efficiency, and technology.
Convenience
Convenience is something we all hope to enjoy in our everyday lives. You want a convenient commute to your business premises, and your customers want a convenient place to visit with ample parking and straightforward access.
Keep convenience in mind when the time comes to hunt for new commercial premises. If an office or retail business isn’t easy or convenient to access, customers may not consider it their first choice when they require the products and services you have to offer.
Location isn’t the only factor in the premises’ decision-making process. You must also consider the price, lease terms, and amenities. However, you might be surprised by how impactful your business location can be. Remember the points above, and narrowing down your list of prospective business locations should be much easier.
