13 Key Questions to Answer before Selecting a Small Business Location
The Importance of Selecting the proper Small Business Location
One of the biggest headaches a small business entrepreneur faces is selecting the proper small business location in Wilmington, NC or surrounding areas. Choosing a suitable location for your small business is positioning your business for success. Not merely does a good location reduces small business expenses but could prove crucial to generate sales.
The saying goes, “location, location, location” and it does not help to sell that right product/service at the wrong location. It is necessary that you as small business owner dedicate the time needed to discover the perfect location for your business.
Also read the blogpost “Market Research for Small Businesses” – click here.
Comprehensive checklist to find the ideal small business location
Below is a comprehensive checklist to help small business owners to find the ideal business location. You should answer the following questions before selecting on a location.
- What type and how much space does your small business needs?
a. Does your business require retail, warehouse/storage, workshop, manufacturing, or distribution space?
b. What is the square footage that you will require for each type of space?
c. Does your small business has any special space/building requirements?
d. Are you seeking collaborative space? - Do you foresee that small business will grow?
a. Do you have sufficient space to grow in the prospective location?
b. Can you expand the building or take over an adjoining area? - What is your small business brand and target customers?
a. How does your brand affect your location and visual image of the building?
b. How relevant is the closeness of your target market to you?
c. What is the demographic profile of the people living in the area?
d. What is the psychographics (attitudes, interests, personality, values, opinions, and lifestyle) of the people living close to the prospective location?
e. How relevant is the history of area to your potential customers (tourists)? - Are you going to receive customers at your small business location?
a. What types of customers do your small serve at the location?
b. Are your customers consumers, resellers, manufacturers, or other type of business?
c. How significant are their perceptions of the property/building? - How easy can your customers access your location, or you access them?
a. Where are your customers located and live nearby?
b. How suitable is the location to accommodate your distribution channel needs?
c. How is the road network and public transport to your location?
d. Is there adequate parking for customers? - How easy is the location to access by your vendors and suppliers?
a. What is the availability of raw materials, parts, and supplies in the proximity of your prospective location?
b. Can delivery crews easily move supplies into your business?
c. Do you take large shipments on pallets and do you need to accommodate large delivery trucks? - What other businesses are near your prospective location?
a. Are these businesses match or mismatch to your small business?
b. How important is foot traffic to generate revenue at the location?
c. Is there an advantage to collaborate with these businesses? - Do you have competitors close to your location? Could they benefit your business or cause a hindrance?
- Are you going to buy or rent the property?
a. What are the going property rental and purchase prices in the area?
b. How much can you afford to spend on your small business location?
c. Did you evaluate the cost benefits of location being considered? - What are other costs associated with the property?
a. How much will you spend on property taxes, licenses, and utilities?
b. What would renovations, upgrades, and interior decorating cost? - Does your prospective location meet your employee’s needs?
a. What is the skill base in the area, and can you find the right employees?
b. Where do your employees live and have easy access to the location?
c. Are there adequate parking spaces for your employees? - What is the neighborhood like?
a. What is the risk of potential criminal activity?
b. How will it affect your insurance and the cost of security measures?
c. Will your customers feel safe when visiting your location? - What are the zoning rules that apply to the location? Do they restrict your business type, signage, hours of operation, noise levels, chemical usage or other aspects of your small business?