When starting a new business or expanding, one of the things you probably consider is your location. From accessibility to the proximity to your target client, location has always been an important element in setting up a business. For example, if you’re running an offline business far from your target customers, you’ll likely struggle to attract prospects. Even with the rapid increase in online services and delivery solutions, your business location is more important than you think. Here are some ways your location impacts your business.
- Attracting and retaining the right talent
Running a successful business isn’t only about attracting ideal consumer prospects; it also has to do with your ability to attract, assemble and retain the right working team. A study conducted by Gartner suggested that over 50% of workers consider location as the biggest factor that attracts them when searching for a new job. Therefore, when hiring a team, you want to ensure that you don’t just look for candidates with the skills required to make your company successful but can easily access the work premises. The business location also remains extremely important despite the growing popularity of remote working strategies, virtual offices, telecommuting, etc.
- Easy access to suppliers
Depending on the type of business you run, your location can also affect how easily you can access your supplies and how much that may cost you. While quality and price may be the two primary prerequisites in choosing a supplier, you cannot ignore the impact of speed of delivery. Delivery speed can affect how much you spend on purchasing your supplies, as the farther your suppliers are, the more you can expect to pay for your supplies.
- Real estate expenses
Real estate is the second most significant cost you’ll have to deal with aside from your labor costs, whether you’re renting office space or considering building from scratch. Beyond how much you end up shelving for your office premises, other expenses like maintenance and repairs, power usage, regulations, tax, etc., are other important considerations. Countrysides usually have lower tax rates and fewer regulations than business centers and major cities regarding regulations and taxes.
For instance, setting up a shop in a bustling city center usually comes with quite a hefty price tag. Utility costs in such areas can also be very draining, especially if you’re running a startup business, so keep this in mind.
- Location perception
