How to Choose the Right Business Location
The location of your business matters–and it matters a lot. Taxes, procedures, local laws, customer base…these are all different in different areas. That means that where you open your doors could be the decision that makes or breaks you! Here are the important factors to research before you sign a lease.
Where Do Your Target Customers Live?
Obviously, you don’t want to open a butcher shop in a town of vegetarians. Identify your target market, and figure out where they live. See how well existing businesses in your industry are doing in certain areas.
What Are The Location-Specific Expenses You’ll Face?
Are average employee salaries higher in one spot than another (usually correlated with higher costs of living)? Does one city have a higher minimum wage than another? How about property values? Insurance rates? Government fees and required licenses? All of these costs can vary, even significantly, based on location.
Research Local Zoning Requirements
You don’t want to commit to a town, then realize that you have to jump through a ton of zoning ordinance hoops–or, worse, discover that your business type is restricted from operating at all in a certain area.
Consider The Tax Landscape
Businesses face a veritable slew of taxes: federal, state, local; income, property, sales, corporate. Certain areas intentionally create tax environments that are favorable to businesses, while others hit them with high bills. You should be able to find information like this on state and local government websites.
Are Incentives Offered In That Area?
Just as some areas offer lower taxes, others offer incentives that could offset costs to your business. This could be special tax credits, state-specific business loans with good rates, benefits for creating jobs or going green, or opportunities to contract with the federal government to open your business in an underutilized area.
When choosing a business location, be thorough–but don’t fall into the trap of analysis paralysis. You may not find the *perfect* area, but with a little research you can certainly maximize your chances of success. Contact Anmarc Business Capital to explore business financing needs as you prepare to open your doors.