Bekkah explains what factors you may want to consider when you open up a physical storefront! This episode covers considerations such as whether you are hiring employees, being in the right location for your target market by researching your target market demographic, exploring overall city and regional resources that may be available to your business, and leveraging what your business will bring to the community when choosing a site location.
How to Choose the Right Business Location
Welcome to Business Talk! I’m Bekkah, and in this podcast episode, we dive deep into the critical decision-making process of selecting the perfect location for your business. Having recently purchased a building myself, I’ll share insights, tips, and strategies to help you navigate this crucial aspect of entrepreneurship.
Tips for Business Readiness and Product Evaluation
Tip 1: Evaluate Your Business Readiness
Before deciding on a location, consider the readiness of your business. Assess your offerings, customer demands, and whether starting from home or opting for a physical location is the best first step.
Tip 2: Test Your Product or Service
Thoroughly test your product or service in low-risk environments to ensure it meets customer needs and generates cash flow. Avoid common pitfalls by conducting sufficient research and budgeting to prevent financial struggles.
Tips for Low-Risk Selling and Data Gathering
Tip 3: Leverage Low-Risk Selling
Focus on low-risk ways to sell your product or service. Continually test until you have a successful offering that generates cash flow in a low-risk environment. Neglecting this phase can lead to financial losses.
Tip 4: Gather Data
Collect data on your target market by starting small, such as creating an Etsy store. Leverage tools like Neighborhood Scout or Census Data to analyze demographics and geographical locations, aiding in the decision-making process for choosing a business location.
Tips for Understanding Workforce and Community Dynamics
Tip 5: Understand Workforce and Community Dynamics
For businesses involving hiring, examine workforce and community data thoroughly. Identify the average age, core industries, and demographics of potential employees. Consider whether the community comprises retirees or young families.
Tip 6: Importance of Demographic Data
When establishing your business, hiring becomes a critical factor. The availability of potential hires in a town can impact the growth of your business. Demographic data on various towns is crucial when selecting a business location.
Tip 7: Key Questions to Ask
Ask essential questions when evaluating potential locations, including the availability of high school students for after-school jobs, median age, education level, median income, and average household size. These factors provide insights into the local customer base.
Tips for Online Businesses and Broadband Accessibility
Tip 8: Consideration for Online Businesses
For businesses with a virtual workforce or an online model, focus on broadband accessibility. Ensure the chosen site location has high-performing internet access to avoid disruptions that could harm your business.
Tip 9: Importance of Broadband Access
Check for broadband accessibility, emphasizing good fiber quality and upload/download speed. Multiple competitors within a market are essential, as some areas may suffer from broadband deserts, where reliable internet access is scarce.
Tips for Understanding Local Wages and Income
Tip 10: Evaluate Local Wages and Income
Assess the average wages or income for potential employees and set prices for your business based on the local economy. Utilize state-specific data tools to gather information on expected pay rates and employment needs in your chosen industry.
Tip 11: Utilize State Resources
Leverage state resources and departments like the Department of Economic Development for data tools and assistance. State-specific data specialists can help you navigate and interpret complex data, ensuring you make informed decisions about your business location. You can see an example of Minnesota’s Department of Economic Development.
Tips for Regional Demographics and Strategic Planning
Tip 12: Consider Regional Demographics
When choosing a business location, it’s crucial to assess the regional demographics. Explore opportunities for business expansion and leverage specific resources available in the area. Understanding the regional initiatives and dynamics can provide valuable insights for your business strategy.
Tip 13: Read Strategic Plans
A key recommendation is to read strategic plans associated with regions, cities, states, and Workforce Development Areas. Strategic plans outline priorities and initiatives, offering valuable information on the focus areas of a community.
Tip 14: Identify Business Opportunities in Alignment with Needs
Connect with regional needs by identifying areas where your business concept aligns with the community’s needs. Explore how your business can address specific needs outlined in strategic plans, potentially accessing support and incentives.
Tips for Governmental Support and City-Specific Plans
Tip 15: Be Aware of Governmental Support
Governmental entities may offer support and incentives for businesses addressing critical needs identified in strategic plans. Stay informed about temporary incentives, subsidies, or funding opportunities that may align with your business model.
Tip 16: Read City-Specific Strategic Plans
Reading the strategic plans specific to your city is essential. It provides insights into the city’s long-term goals, such as housing developments, infrastructure upgrades, or other major projects.
Tip 17: Prevent Zoning Issues with Strategic Planning
Consider the strategic plan when purchasing a building to prevent zoning issues. Understanding the city’s plans for the next 10 years can help you avoid investing in a property that may later be zoned differently from your business needs.
Tip 18: Make a Comprehensive Business Plan
Creating a business plan is essential before approaching cities or stakeholders. A well-prepared business plan ensures you have a clear understanding of your goals, potential challenges, and how your business aligns with the strategic plans and needs of the community.
Tips for Tax Implications and County-Level Regulations
Tip 19: Consider Tax Implications
When evaluating potential business locations, carefully assess the tax implications at different levels, including state income taxes. Be mindful of sales taxes, property taxes affected by school levies, and their impact on product pricing.
Tip 20: Be Aware of Tourism Taxes
Evaluate whether there’s a tourism tax and its specific application, especially if your business involves accommodations like a hotel. Understand industry-specific taxes and consider how they may impact your business and customers.
Tip 21: Consider County-Level Regulations
If your potential property is not within city amenities, consider county-level regulations. Anticipate potential updates in regulations and their associated costs, such as changes in septic tank rules, and plan accordingly.
Tips for Using Hypothetical Situations and Researching Scenarios
Tip 22: Use Hypothetical Situations
Engage with local authorities and experts by using hypothetical situations. This approach allows you to ask questions about potential projects and their implications.
Tip 23: Research and Plan for Hypothetical Scenarios
Call relevant individuals, ask questions, and plan for hypothetical scenarios to gain insights into potential challenges and costs. This proactive approach helps you avoid surprises and ensures you have a comprehensive understanding of the regulatory landscape.
Tips for Seeking Advice and Economic Development Agencies (EDAs)
Tip 24: Seek Advice and Insights
Leverage advice from experts and seek insights from those familiar with the area. When considering a building, particularly commercial properties, gather information to make informed decisions and avoid unforeseen costs.
Tip 25: Utilize Economic Development Agencies (EDAs)
Engage with Economic Development Agencies (EDAs) in the area where you plan to start your business. Explore available programs, incentives, and funding opportunities. Be proactive in asking about potential programs and support.
Tip 26: Network with Other Business Owners
Connect with other business owners in the community to gather insights and recommendations. They can provide valuable tips, recommend contacts, and share information on available programs, grants, or efficiency grants for equipment upgrades.
Tip 27: Seek Real Estate Brokers for Larger Properties
For larger businesses requiring extensive properties, consider hiring a real estate broker experienced in leveraging state, local, and federal funding incentives. These brokers can streamline the process and teach local EDAs how to access funding levers.
Tips for Specialized Support and Industry Meetups
Tip 28: Explore Specialized Support for Housing Issues
If housing is a concern in the area, explore partnerships with housing developers who specialize in creating housing solutions for employees. Consider aligning with organizations or developers focused on resolving specific challenges noted in strategic plans.
Tip 29: Attend Industry Meetups and Events
Participate in industry meetups or events like the Community Venture Network to learn about innovative approaches and opportunities. Networking at such events can open doors to unique possibilities.
Tip 30: Encourage Collaboration and Knowledge Sharing
Encourage collaboration and knowledge sharing within the business community. By asking questions and learning from others, you can discover unexpected resources, industry-specific support, and solutions to challenges you might not have considered.
Tips for Continuous Learning and Feedback
Tip 31: Regularly Review Available Information
Stay informed about available information by regularly reviewing strategic plans, local initiatives, and industry developments. Continuously educate yourself about the business landscape in your chosen location.
Conclusion: Continuous Learning and Feedback
Recognize that the process of finding a good business location involves continuous learning. Seek feedback, share your experiences, and contribute to the collective knowledge within the business community. Regularly review and assess your approach to ensure ongoing success.
If you enjoyed this episode, consider leaving a review on Apple Podcasts, Spotify, or YouTube. Stay tuned for more insightful episodes in this series as we unravel the intricacies of building and growing a successful business. Thanks for joining me, and we’ll see you next time on Business Talk!
