Top tips for choosing the best location for your business

Choosing the right location for your business is crucial for its success.

It is not just about the physical space, but also about the potential for growth, accessibility and the nature of competition in the area.

When looking to acquire a new property there are several steps that you will need to take, including important legal considerations.

Understanding your business trajectory

Before deciding on a location, it is important to consider your business’s future. Will the chosen location be suitable for the next five to ten years?

Short-term solutions might lead to unnecessary relocation costs, impacting your profits.

Evaluate your long-term business plan and ensure the location aligns with it.

Financial considerations

Location can significantly influence your business’s profile. However, it’s important to balance the prestige of a high-profile postcode with the reality of your finances.

Overextending for a desirable location could lead to financial restraint. Consider if the location is sustainable for your business model.

Legal due diligence and risk assessment

When choosing a business location, conducting due diligence and risk assessment is crucial. This process involves evaluating factors such as market conditions, local competition, planning permissions and local regulations.

Seeking legal advice is strongly recommended when performing due diligence and risk assessments, as experienced commercial property solicitors can expertly navigate intricate legal frameworks and regulations.

Their guidance ensures your decisions align with legal requirements while effectively mitigating potential legal challenges and safeguarding your business’s interests.

Meeting business needs

Selecting a location that caters to your business’s operational needs is essential:

• Office spaces – Choose office locations with good public transport links and parking availability. Ideally, the surrounding area should offer amenities like cafes and green spaces, and the internal office layout must support employee productivity and comfort.
• Retail stores – When it comes to retail, it is essential to prioritise high-foot traffic areas like retail parks or bustling streets. However, it’s worth noting that these prime locations typically come with a higher price tag. While the increased cost may pose a financial challenge, the advantages of such locations are often well worth the investment. Research the retail history of the area and ensure your target demographic aligns with the local population. Consider customer accessibility, including parking and public transport.
• Manufacturing facilities – Manufacturing locations should be near supply chains, have ease of access for shipping and comply with local planning regulations. Ensure availability of skilled labour and space for future expansion.
• Service industry – Service-based businesses, such as salons or restaurants, should focus on visibility and accessibility in areas with high pedestrian or vehicle traffic. The location should also resonate with the brand image and attract the target clientele.

Expansion potential

Consider the potential for growth in the chosen location. If your business is likely to expand, ensure the location can accommodate this growth. A space that’s already at capacity limits your options for scaling up.

Assessing local competition

When choosing a business location, it is crucial to evaluate local competition. Identify similar businesses in the area, and analyse their performance, client base and market position. This reveals market saturation levels and potential opportunities.

Consider how your business stands out from competitors and how you can use your unique selling point (USP) in the chosen market to your advantage. Being near competitors can be advantageous in certain industries, drawing a concentrated client base.

Balancing the benefits of a competitive location with the risks of market saturation is vital for an informed decision.

Seeking legal advice

Securing legal advice is crucial when selecting a business location. A solicitor specialising in commercial property can guide you through lease agreements, commercial mortgages and local regulations impacting your business.

They ensure due diligence, helping you avoid hidden liabilities or restrictive clauses in property agreements.

Legal advice is invaluable for understanding contractual obligations and advising on specific licenses or permits your business might need.

In essence, legal advice not only safeguards against potential pitfalls but also sets a solid foundation for your business’s future growth and stability.

Choosing the right business location requires a multifaceted approach, considering financial viability, business needs, expansion potential, competition and legal considerations.

With careful planning and analysis, you can select a location that not only meets your current needs but also supports your business’s growth and success in the long term.

Do you need advice regarding a commercial property purchase or lease? Get in touch today.