Choosing Ideal Business Location
Choosing an ideal business location is an important part of making your business successful. Unless your business is completely online, you may need some kind of physical location your customers can visit. There are plenty of options available in the market when you look for one. However, you must think about many factors before you choose one. Why? Because it can affect the way your business operates and how much profit it makes. This article will focus on how you can choose an ideal business location in South Africa.
Think about your Business Location Type.
Your business type will decide whether you actually need a physical location or not. If you do need one, think about what type of business location would be useful for you. Usually, the following business location types are the common ones:
- Home-based Business
- Private offices/shops on the street or in office buildings – commercial business spaces.
- Kiosks, rental places in malls, airports, and other public places.
- Mobile businesses, such as an ice-cream van or food trucks.
- Industrial locations if your business is into manufacturing and distribution.
If you are going for a physical location, make sure the location is legal and have no legal issues. If you are looking for starting a business, like a food truck in South Africa, the process is different. The SME South Africa explains this process quite well in this article.
Are you set on the business location type? Good! Let’s move onto the next point.
Business Location and Budget.
So, you have chosen the business location. Now what? Let’s talk about the primary and the most important aspect of it – the budget. Think about the following questions.
- Can you afford it?
- Is it a cost-effective option for your business?
- Is it keeping up with that area’s competitive prices?
- Can you get a better deal?
- Is it worth it?
It will not be just about buying the property. You will also have to pay the region-specific taxes, renovations, and utility upgrades. Make sure your budget can support all these requirements. Also, you have to consider the regional minimum wage into account.
If you think your budget can afford the location, and if you can get the best out of it, then go for it. We would advise you to talk to other business owners about the location as well. Feedbacks can help you strongly reform your opinion about the place.
Supply and Demand.
Let’s talk about the supply first. Your business location should have easy access to needed supplies and materials to keep your business running. It should be easy to connect with vendors so that you can procure the required materials. Delays in supplies can hamper your business activities and it can greatly affect your revenue.
Make sure the business location you choose has easy access to various vendors and supplies. Don’t underestimate this aspect.
Demand. Does the area have a demand for your products and services? Yes? Then that is an ideal location for you. It is not always possible to get an ideal location where you can have both at the same location. If so, it’s a better idea to choose a location that has easier access to supplies. Afterwards, you can invest a bit in transport to deliver your products to your target prospects.
Business Location and Safety.
Before you choose a location, make sure that the area is safe. This is especially important if you are running a high-profile business such as a jewellery shop. You don’t want your products or materials to be hijacked. It can cause major losses in your business.
Besides, you should also make sure that your business location also complies with local construction laws and regulations. Make sure it has all the safety mechanisms such as fire exits. Having a business in a safe area will give you that extra sense of security and you can run your business in peace without worrying about mishaps or accidents.
Ease of Accessibility.
This is especially important if you are in a retail business. As a retail business, your customers should be easily able to access your business. The ideal location for a retail business or a restaurant should be around the main streets. With this, people are just going to walk into your shop just by seeing it. All you need is the right advertising and representation.
But even if your business is not a retail or a restaurant one, let’s say you run a real-estate agency, you would still want people to easily access your business. An obnoxious address can drive people away from your business. Ideal locations for such business would be in a corporate plaza, with easy access to public transports.
Suitable Business Location for your Niche.
This point refers to the competition in the area and the supply/demand aspect. Are your prospective customers able to access your business easily? How is the competition in the area? What can you do to stand out? These are some of the most important questions once you are past the budget and establishment part. Understanding answers to these questions will help you in forming a strategy. By doing so, you can stand out, improve your business practices, and make your business successful and reliable.
More importantly, this point also refers to choosing an appropriate location that matches your business practices. For example, if you are running a high-end restaurant, you would want to locate your business in a rich area. If you are selling some cheap snacks or other fast food items, setting up near a school/college would be a good idea. It’s important to understand the ideal locations to set up your business.
If you are looking to establish your business physically, we believe that the factors mentioned above would help you greatly. Locations can contribute greatly to your success. But, don’t be overly fixated on choosing a location. Not everything goes according to the plan and it takes a little bit of luck to find just the right location. In the end, it will all break down to how your business services are, or how you will treat your customers.
Also, we would like to say that, whether physical or not, you definitely should have a digital presence. Having a digital presence for your business means people can discover, interact, or connect with your business more efficiently. In Cape Town, South Africa, Digital Lime Green is a web design agency that provides web design services at affordable costs. Explore our wide range of digital services or connect with us in case you need our assistance.