Location, Location, Location: Starting Your Small Business, Part 4

This is the fourth part of a multi-part series that will help prospective entrepreneurs to develop the tools they need for a successful business venture. 

Now that you have your roadmap established for starting your new business, it’s time for the next step: pinning your future business’s location on the map. As any commercial real estate broker can tell you, location is critical, and this is especially true for a small business. Although this is an exciting component of starting a business, there are a number of factors to consider during this stage of the process. 

If you already have a place in mind, it’s important to determine whether that particular location is suited to your business. Questions to ask include: 

• Do the demographics of this location match my target market? 
• Does this location match my business brand? In other words, will my business feel like it belongs or will it seem out of place in the surrounding environment? 
• How do the costs of operating a business in this location compare to other locations in the area? 
• What are the local zoning ordinances of this location? 
• What is the tax environment like for this particular location? 
• Are there any special local or federal government incentives available for locating my business in a certain place? For example, you may qualify for preferential access to federal procurement opportunities under the Historically Underutilized Business Zones (HUBZone) program. 
• Will there be sufficient parking for my needs? 
• Will this location be easy for my vendors, suppliers, and customers to access? ● Does this location offer specific features I need, such as a drive-through window, great signage, a discreet location, etc.? 
• Is this a safe location to do business? 

According to developer and Commercial Real Estate Broker D. Scott McLain, CCIM of Coldwell Banker Commercial McLain Real Estate, a competent commercial broker will help a person or company with all of these questions. 

McLain stated that while the City of Huntsville can provide information on zoning, flood conditions, traffic access, and a few other governmental matters, “the other issues are market based, and someone that works in the market and understands the business and market is best able to help ensure a good decision.” 

According to McLain, this information is diverse and specific to the particular user. Because of the unique nature of each case, therefore, it is important to provide as much information as possible in order to take full advantage of professional expertise.

“Conveying to an expert all the criteria of the business is needed to empower that expert to make recommendations. The expert needs to ask these questions, understand the business and needs, and then find solutions in the marketplace,” McLain explained. 

Once you’ve found the right location for your business, it’s time to start thinking about another critical question: what legal structure will be best for your new company? We’ll cover this in the next installment of our guide to starting a successful small business.