How to Choose a Site for Your Business

Choosing the appropriate site for your business can be vital to your eventual success. Because the
start-up process often involves so many details related to products, services and finances, entrepreneurs
can misjudge the importance of planning the firm’s location. Starting in the home seems
inexpensive, or leasing a space close to home seems convenient, or choosing a site that is inexpensive
seems practical. A poor choice on start-up location can result in added marketing, and moving or
facility renovation costs in the future. For some businesses, location is more important than for
others. The wrong retail location, for example, is more critical than the wrong consulting location.
If you decide to locate in your home, be sure to balance the obvious efficiencies with the image your
business conveys to your customers, suppliers and financial partners. If you determine that location
is not a factor in whether customers will patronize you (a dot com start-up is an example) then your
next step is to contact your local municipality to investigate regulations concerning zoning, signs and
parking.

Checklist for Business Location Analysis
If home is not the best place for your business, the checklist that follows will help you weigh the
benefits of potential locations. Begin by reviewing the list and crossing out the factors that are not
important to your business. Next, add any new factors that apply to your business. Finally, identify
at least three potential locations and consider each of the following factors.
Appropriate zoning for the type of business
Cost of land, building, facilities
Building codes
Cost of utilities (installation)
Availability and cost of utilities (monthly estimate)
Cost of monthly lease or mortgage payment
Cost of renovation or leasehold improvements
Availability and cost of security system
Availability of police and fire protection
Availability of the types of employees needed by firm
Availability of transportation for customers and employees
Occupancy permit requirements
Access for customers with disabilities
Tax structures and payment methods of local and regional government
Proximity/distance from competition
Maintenance costs for property, building, parking area