We are pleased to present the guest article below by Jacob Tegtman, a writer for “Western Constructors.” As a full-service residential/ commercial consultant and contractor, their expertise is detailed and extensive. He will be discussing why it is so important to have the right location for your business to maximize its value potential.
Are you ready to begin a new business, but you’re not sure where it should be located? Inexperienced investors or owners might be considering a random place on the map that they think is most convenient. However, that’s one of the biggest mistakes you can make as a beginner. The location of your commercial properties matters more than you may think.
You want to be somewhere that maximizes the potential of your income-generating vehicle. It’s not just about visibility to your target audience; there are many other things that are directly affected by your business’s location, so it’s best to pay attention and understand how these factors come into play before making this big decision.
Our experts from Western Constructors are here to share our insights into the topic. We’ll show you why the location of your commercial property matters by walking you through everything it can impact about your business. Spoiler alert — it’s not just your address.
Consider your target audience; what demographics do they fall into? You want to consider the hypothetical age, income bracket, interests, and more of the customers who are the most likely to buy your products or services.
Now, where do people like this live? Check out the demographic information of areas where you’re considering building to see how good of a match it is. You’ll want to build your commercial property in a place where your target audience lives.
For example, if you’re offering a high-end restaurant experience, don’t build your establishment in a low-income neighborhood. You’ll also want to consider if your customers or clients have the means to travel to you. Remember, convenience is a big factor. Many will pick the nearer one even if it’s the pricier option.
The taxes you’ll have to pay will be different from state to state or county to county, so your location will influence this. In the US, Wyoming ranks number one for small businesses, as there’s no income tax levied. New Jersey, on the other hand, has the highest income taxes for companies. However, the benefits for business owners thanks to these payments are excellent.
Your location plays a huge role in employee retention. The easier they can reach their workplace, the more likely they are to stay with the company. More than half of workers in the UK, for example, see location as a deciding factor when determining whether they’ll stay or take a new position. Customers also want a place they can easily reach, whether by car or by foot. In short, an accessible location means higher rates of worker retention, more traffic, and increased income.
When choosing locations for your commercial properties, you should be thinking long-term and know where your business is heading. Are you the kind of company that needs a small central office downtown with numerous satellite offices, or are you the type of company that will eventually need a larger space for increasing inventory or number of employees?
You’ll also want to consider where your competition is located when choosing your location. Being near them can be a good or a bad thing, depending on your industry, but you should avoid adversarial business relationships in general. Healthy competition is more sustainable in the long run, as it incentivizes each business to steadily grow and evolve with the market.
Need an in-depth analysis of the best location for your new commercial properties? What about ways you can save on design and construction expenses? Western Constructors is here to help. We’re an established construction company offering best-in-class solutions for any kind of project or structure.
You can consult with our experts to find a scenic, high-traffic location that suits your business goals. We’ll handle every step of the building process, from planning the design to polishing off the finishing touches. With us on your side, you’ll have a high ROI business in a prime location.