As the saying goes, “Location, location, location.” The positioning of your business plays a huge role in reeling in customers and building a client base, so it should be one of your primary considerations when setting up shop. So with that in mind, here are four ways location contributes to the success of your business:
A good location is one that locals can quickly reach. Positioning your business in a city’s central hub is a great way to get more foot traffic. It’s a bonus if there are multiple means of transportation that lead to the area. In addition, location is critical when making your business accessible to those with disabilities. The Americans with Disabilities Act (ADA) is a congressionally mandated code that was enacted in 1990. Following this law, public and private entities must adhere to specific guidelines to make their facilities easier to access. In New York, for example, hundreds of small businesses were sued for violating the ADA, including a restaurant with an eight-inch step leading to the front door. Choosing a location that is either already accessible or can be altered to fit the ADA’s guidelines is crucial in avoiding legal disputes in the future.
In the right location, a business can market itself effectively, first by sprucing up the storefront. One clever example that comes to mind is at a particular Starbucks branch in California. The company decided to repurpose the old Gilmore Gas Station into its signature coffee shop. This is an innovative way to further their brand and attract more customers, since the vintage gas station was featured in movies such as L.A. Story and 48 Hours. With a keen eye for location and a bit of creativity, your storefront can become a memorable fixture in the local community.
Community Building and Networking
For a business to really flourish, it needs to connect with the community. The company has to set up shop in a place that has a good-sized population and the ideal demographic. Plus, it wouldn’t hurt to be around other like-minded business owners, as this provides networking opportunities. Case in point: The business landscape in South Carolina is made up of 400,000 small businesses, which comprises nearly 97% of firms in the state. This, on top of good infrastructure and strong government support for entrepreneurs, has helped The Palmetto State stay afloat despite the economic downturn in 2020, driving unemployment down to just 2.4% in August of last year. And who knows? A supportive community might be what saves a business from closing down in tough times.
Real Estate Costs and Taxation Laws
Lastly, the location you choose plays a big part in your expenses. The costs of buying or renting out a space will largely depend on where in the city you are as well as what state you’re in. Often, the closer you are to the city center or the business district, the pricier the fees will be. It’s also worth considering how each US state taxes its citizens. Though there exists a nationwide federal tax code, state and local tax laws vary, and these can quickly burn a hole in your budget. In fact, numerous tech companies from Silicon Valley have begun migrating to Texas to avoid the high taxes, expensive housing, and strict governmental regulations. These include larger companies like Hewlett Packard Enterprises, Oracle, and QuestionPro. So, make sure to research each state to ensure that you can cover the expenses of starting a business there.
While location isn’t the only thing that affects a company’s success, it plays a huge part in it. Don’t cut any corners when it comes to doing your research, so you can find the location that best suits your needs and budget. For more business-related news, check out the rest of our content here on Rprogress.org.