Although online businesses are quite popular for various reasons, owning a brick-and-mortar business also has its perks. For one thing, it allows you to build a local customer base, which will allow you to get to know your customers in person.
However, sometimes, it can become necessary to relocate your business due to construction in the area or a sizable increase in rent. But before you do, you’ll want to consider some important factors before committing to a new location. After all, the location that you choose can help your business be successful — or cause it to flounder.
1. Is the Space Large Enough?
When considering a new space for your business, you’ll want to think about the space the business requires now and make sure the new location is at least as large. For example, check to see if you will have enough storage and a breakroom if needed. In addition, you’ll also want to think about whether you will expand your business in the future — and how that expansion could change your space requirements.
2. How Do the Overhead Costs Compare to Your Previous Location?
Overhead costs are another factor to consider. Just because the price of rent on the new location is comparable to your old space does not mean that the other costs will also be the same. You’ll also want to look at the cost of utilities, insurance costs and any repairs that may need to be made. If the overhead costs are much more expensive than you currently pay, you’ll want to make sure they won’t cause a financial hardship.
3. How Easy will it Be to Market Your Business?
The area in which you relocate your business should be composed of people who meet your target market. This will make it so much easier to market your products and services. Once you get settled, you may want to check out the reviews for Welcome Wagon. The company employs direct mail and digital marketing to connect new movers with local businesses, like yours, in the area.
4. How Easy is it to Get to the Location?
Although you may find a space that has affordable rent and plenty of customers, the location must also be accessible to your potential customers. If the location is out of the way, lacks convenient parking or is hard to get to during peak traffic times, it could deter customers from visiting your business. This is especially true if there are other competitors located in the area. You also should consider how accessible the business is when customers approach it on foot. For example, if customers have to step up a considerable distance to enter the building, it could deter some people — and also pose a hazard.
5. How Many Competitors Are Close By?
Research the area for potential competitors before relocating. The presence of competitors can be both good and bad. For example, if there is a competitor who has a long-standing history with a favorable reputation and an extremely loyal customer base in a smaller community, moving nearby is probably not a good idea unless there is enough potential business for the both of you. If you’re moving to a larger area where there are several competitors, however, it can be a good thing because the area will be known for your type of business. You can use a resource, such as Reference USA, to gather valuable information about competitor data.
6. What About Staffing?
Is the location you are planning to move to close enough for all, or at least some, of your current staff to drive to — or utilize public transportation to get to — if they so choose? If not, you will have to invest time and effort into interviewing, hire and train new staff members, which will likely extend the time it will take you to get your business up and running.
7. Is the Technology You Need Already in Place?
Make a list of the technology you will need and speak to the building’s landlord before signing a rental agreement. For example, does the new location already have Wifi? If it doesn’t, will you have to pay to have it installed? If you are planning to move to an older building, find out if it has enough data lines or phones installed to meet the needs of your business. If you are going to need a server room, will the building’s current wiring support it?
As long as you consider all of these things before relocating your brick-and-mortar business, you should be able to avoid most, if not all, missteps or pitfalls that can potentially occur.