Now Where?

So you've got your plan, you found your mentor, and now you're ready to open. Not quite yet! The third step is finding a place to set up shop. Unless you plan on running a business selling lemonade with your eight year old daughter, you may not want to use the dartboard and map method to find the right location. If your business is online, or out of your home things are easier but there are still many important items to consider.
  
Every business has its operational expenses, or basic overhead. The cost of the building, or rent is one the first expenses. Then comes the utilities, electric, gas, water, etc. These are the obvious; followed by insurance, taxes, municipal permits, and basic business necessities. Each city, county, or state will have different rules so be sure to do your research.    

  Another determining factor is what kind of resources are needed to run your business? Do you need materials from another part of the country, or will everything be available in the location you work from?         If receiving materials and supplies regularly is the life-blood of your business, how will they get there? Is your shop near a train line, or can trucks and delivery vehicles access the shop easily?


Along the same lines, how will customers get to the business? It is important to consider various factors such as highways, bus routes, intersections (it can be quite annoying trying to pull into a gas station from a four lane road with medians and no easy U-turn capability), and parking spaces. Will there be enough room for your customers to park, and load the merchandise they have purchased at the your store? How about handicapped parking?

Other considerations need to be made such as the length of tenure you have planned for your business. Are you planning on rapid expansion and need additional space, or a larger facility? Will the neighborhood also experience growth and development? It may be important to speak to the local municipal planner to see if there is any expected construction that may impede your customers from accessing the establishment.

Finally, last but not least study the demographics of the neighborhood. Is there competition close to you? If so, will your business be significantly affected for the better or worse? What is the standard of living for residents nearby? Is there a social class you prefer to market towards? How about ethnic diversity? It may not be profitable to run a Mexican restaurant in Chinatown. Of course, the crime rates should also be researched. It would definitely be important to know if there are any gangs in town, or whether any business has been robbed in the past.

All of these things and more are important to consider prior to planting your flag and shining the spotlights at the grand opening. This information will affect the financing side of your business plan and once a location is selected the best idea is stay around a little while. Your business will perform much more efficiently if people know that it has been there a while!