[This article was written by Hannah Whittenly.]
Location plays a major role in a company’s success. Without the right location, you’ll have a more difficult time staying in business. Here are some of the main reasons why it’s important to have your business located in the right community.
The Right Customer Base
You should take into consideration whether your company’s location is attracting the right customer base. If you’re located in an area where you’re unable to reach your target audience, you’ll have a more difficult time retaining customers.
For example, you’ll likely make less sales if you try selling high-end merchandise in a low-income neighborhood. You could also be alienating customers if you sell quirky, unusual or controversial items in an area where local residents are known to be more on the conservative side.
Your business could also suffer if it’s located in an area where operating costs are high. This won’t be too much of a problem if your company is large and generates a lot of profit. However, if you run a small business, the operating costs could overwhelm you.
The costs for leasing space, utilities and other overhead expenses should be factored to determine whether or not you can afford to operate for the long term in your current location. If operating costs are too high in your current location, you may consider hiring a nearby moving companies to help you relocate to an area that’s less expensive.
With the right business ecosystem, you’ll be able to network with other businesses in the area and form a solid community. As Fast Company states, having your business located in an area with a good business ecosystem will allow you to exchange ideas with these companies and possibly share customers and resources.
One of the best ways to establish yourself with other businesses is to join your local chamber of commerce. Sponsoring local events with other businesses in the area can also help you foster a more positive business ecosystem.
You’ll want to make sure that your business is situated in an area where you won’t be violating any laws. It won’t do you any good to try operating in a place where you could get into trouble with authorities and possibly face hefty fines.
Your business should comply with local zoning laws. Certain municipalities have their own safety codes, so it’s important to research those as well. It’s also important to make sure that you’re not selling any items that are prohibited in your particular area.
With the right location, your business will likely thrive and remain successful for the long term. You should make sure that the location coincides with your company’s vision so that you won’t have to deal with any conflicting interests.
Hannah Whittenly is a freelance writer and mother of two from Sacramento, CA. She enjoys kayaking and reading books by the lake.