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Choosing the appropriate site for your business can be
vital to your eventual success. Because the start-up
process often involves so many details related to
products, services and finances, entrepreneurs can
misjudge the importance of planning the firms
location. Starting in the home seems inexpensive, or
leasing a space close to home seems convenient, or
choosing a site that is inexpensive seems practical. A
poor choice on start-up location can result in added
marketing, and moving or facility renovation costs in
the future. For some businesses, location is more
important than for others. The wrong retail location,
for example, is more critical than the wrong
consulting location.
If
you decide to locate in your home, be sure to balance
the obvious efficiencies with the image your business
conveys to your customers, suppliers and financial
partners. If you determine that location is not a
factor in whether customers will patronize you (a dot
com start-up is an example) then your next step is to
contact your local municipality to investigate
regulations concerning zoning, signs and parking.
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If
home is not the best place for your business, the
checklist that follows will help you weigh the
benefits of potential locations. Begin by reviewing
the list and crossing out the factors that are not
important to your business. Next, add any new factors
that apply to your business. Finally, identify at
least three potential locations and consider each of
the following factors.
•
Appropriate zoning for the type of business
• Cost of land, building, facilities
• Building codes Cost of utilities (installation)
• Availability and cost of utilities (monthly
estimate)
• Cost of monthly lease or mortgage payment
• Cost of renovation or leasehold improvements
• Availability and cost of security system
• Availability of police and fire protection
• Availability of the types of employees needed by
firm
• Availability of transportation for customers and
employees
• Occupancy permit requirements
• Access for customers with disabilities
• Tax structures and payment methods of local and
regional government
• Proximity/distance from competition
• Maintenance costs for property, building, parking
area
• Expansion potential
• Availability/restrictions on parking
• Condition of neighboring properties
• Convenient to primary highways
• Transportation and availability of raw materials
• Convenient to entrepreneurs home
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Small
business incubators are facilities where young
businesses can start and grow. Some incubators offer
businesses the opportunity to lease space at a lower
than market rate. Most facilities provide tenants with
free or low-cost business counseling and training, and
shared office equipment and services. These
educational opportunities and services help reduce
costs and increase profits. After the start-up firm is
nurtured for the first few years of its corporate
life, it is expected to graduate or leave the
incubator to move into a business location in the
community. Graduation normally occurs in 3-5 years.
Incubators may specialize in the types of firms they
can assist, for example, manufacturing and technology.
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- Organizations
offering assistance for site location.
- Incubator Resources
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