Choosing a Business Location

Choosing the right location can be one of the most important business decisions that you will make. Whether you are in the retail, service, or manufacturing business, make sure your new location has the following advantages:

• Is convenient, accessible, and visible to clients, staff, and suppliers
• Provides you with enough room to conduct your business and to grow
• Suits the nature of your business and the image your company is trying to create with its customers
• Provides a comfortable working environment that meets your personal needs
• Has a landlord who is flexible and cooperative
• Meets all zoning regulations
• Other factors to consider include the quality of police and fire protection and the local tax and utility rates.

It is advisable to compare the strengths and weaknesses of several sites before deciding which one is right for you. Also, having several sites to choose from can improve your bargaining position when negotiating lease or sale agreements.

Retail or Service Locations

If you are in a retail business or a service business, such as a dry cleaners or a restaurant, where your customers come to your location for service, then you must pay special attention to your customers' needs. In addition to the general requirements listed above, consider these key factors before choosing a location:

Factor 1: Traffic Flow - For most small retail and service firms who depend on walk-in business, the amount and timing of vehicle and pedestrian traffic past their store is a factor critical to the success or failure of their business.

Factor 2: Convenience - In a society based on speed and service, busy patrons tend to shop where it's most convenient. This usually means at a location which is easy to get to either by car or by public transportation and which has good parking close by.

Factor 3: Customer Profiles - Choose a town, community, or neighbourhood in which the residents are consistent with the age, family status, income level, buying tastes, and habits of the people you have identified as your most likely customers. Also consider whether the community is growing and prospering or whether it is in decline. You can check with Statistics Canada or the municipality for information on your chosen area.

Factor 4: The Competition - How many similar businesses are in the vicinity? To assess your competitive position, review the type, quality, and price of the products and services they offer. How close to your competition you can afford to locate depends on the nature of your retail or service business. For example, car dealerships, fast food restaurants, and art galleries tend to concentrate in the same areas. This attracts customers from a larger market area who are looking for these particular products or services. If you are opening a dry-cleaning service, however, it is probably not wise to choose a location close to another successful dry-cleaning store.