Factors to Consider while Choosing a Location for Your Start-up - Free Guest Blog Website::-Ncblogspot

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Tuesday, July 7, 2020

Factors to Consider while Choosing a Location for Your Start-up

Location matters a lot if you are looking to long-term growing business. Though every business needs to maintain an online presence, you cannot compromise with the location. Not all businesses are suitable for ecommerce stores; for instance, if you are in the fashion industry, you will have to have a mortar-and-brick store along with a website.
Most of the time, when it comes to choosing a location for your business, you emphasise pricing. As long as you get a showroom at a cheaper rate, you clench the deal. This approach can mainly save you a lot of money in the short run, but you will find your business going down in the future.

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Though you can switch to another location if you think you should reconsider your decision, sometimes it becomes hard to release blocked funds. When you finalise a place for your start-up, make sure that you have considered the following factors to avoid ruing the day.

Demographics

The essential thing to consider while choosing a location is demographics. You know who your customers are, but to grow in the long run, you will have to open your business in the proximity to your target audience.

If you open the store far from the people you are targeting, you will not be able to generate enough revenues. A good rule of thumb says that you should have a demographic profile of users to decide on the location.

If you have a particular location on your mind, you should compare the local customer base with the demographic profile you have. This will help you know whether people you are targeting to grow your market do exist in the proximity to your store.

The location should not just focus on your customer base. You will also need to figure out of people you need to assist your business are available nearby. For instance, if you have an apparel store, you will need sales executives, cleaning staff etc. Make sure that such people live nearby. Otherwise, you will keep frittering away money on hiring people.

Affordability

If you are starting a business, you must have funds set aside to invest in it. However, there is no guarantee that the funds will be sufficient to rent or lease the space. Do not forget that the cost will not be limited to the money you pay as rent or lease payment.
Several other expenses can add up the cost like property taxes, building maintenance, and the like. Make sure that you have left with money to pay for these expenses after renting or leasing space.

Your business will not start generating profits forthwith, so you will have to dip into your savings. You should have a budget for overall expenses related to your business, not just exclusively for space. You will be likely to have a shortage of funds. You can consider applying for short term loans for unemployed.

The level of competition

It is crucial to gauge the competition level to choose the location for your business. Some people think that there should be no competition at all, but it depends on the type of business.

If you are opening a restaurant, it will be useful to have competition because you can attract customers by setting different pricing strategy and offering unique things in your menu. Similarly, if you have an apparel store, you will take advantage of choosing a place that gives a boost to competition level.

However, this approach is not suitable for those businesses where customers know that they do not have access to a wide variety. If you are selling faucets and other markets are dealing in the same brand, it is better to open your store somewhere else. People will prefer to visit their shops because they are older than you.

Parking facility

You may not consider it worth paying attention, but this is the most crucial factor to bear in mind. If you want to make money, you will have to provide ease to your customers to reach out to you. If you are on a busy street, make sure that you have answers to all of the following questions:

·         Is there a parking lot nearby? Can they quickly move in and out, especially in peak hour?
·         Is there enough space for staff to park their vehicles without disrupting the flow of traffic?

Find out if you can grow within the same location

As it is starting, a small space will be enough to hit the ground running. As your business grows, you will need more space. Think about how you can expand space. Is it possible to open another outlet in the same locality? If not, where you would like to shift? When it comes to running a business, you cannot make a decision based on the present factors only. You will need to be proactive.

Choosing a location is a necessary step to ensure the long-term growth of a business. If you are looking to start a business, you will have to consider the factors mentioned above while choosing a location UK. 

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