Where you choose to do business plays a significant role in achieving and maintaining business goals. Taking the necessary steps to find an optimal location will enhance your operations in every aspect.
When selecting a site for your commercial business, the first and possibly largest consideration you should take into account is cost. What can you afford? Preparing a cash flow analysis is a great first step that can help you determine your working capital (the amount of money you have available). Keeping track of all business income and expenses will help you establish a realistic budget and narrow your options in terms of whether purchasing commercial property or entering into a commercial lease is a viable option for you.
Your budget should also account for professional services – you should seek advice from real estate advisors, lawyers, and accountants to make sure you are covering all of your bases. With the abundance of information online, it can be overwhelming finding advice that you can trust. Unfortunately, obtaining the wrong advice will end up costing you more. Take the time to find reputable professionals that specialize in commercial real estate in your area.
With a clearly defined budget in mind, it will be easier to narrow your options when it comes to choosing a physical location. According to the Government of Canada, the four main factors to consider when choosing your business location are: zoning, demographics, traffic analysis and competition. You should ensure the property you are looking at is zoned correctly for your business – take all necessary steps to make sure that there will be no restrictions that could limit your operations. Enlisting the help of commercial real estate professionals is imperative to help you avoid problematic zoning regulations, title issues, expensive environmental problems, or even the propensity for high crime. High crime areas, for example, are a safety issue that could deter potential customers from doing business with you. These types of issues could even impact your insurance costs if they are not resolved quickly.
You should also consider the general demographics of the local area. For instance, if your business rents construction equipment to other businesses, a good strategy would be to look for property in close proximity to your target customers and suppliers. On the other hand, if you are looking to hire employees, you should consider the supply of skilled labour in the local area. If your business is open to the general public, it would also be important to consider how accessible the location is for customer parking, or for loading and unloading equipment.
The above is not an exhaustive list of factors to consider, but will guide you through the initial process of selecting a location that has the right foundation for success. Keep in mind that choosing the right location will depend greatly on a realistic and focused budget and will require professional advice to help you avoid big problems down the road.
At Pulse Construction, we’re committed to doing business with an honest, professional, and competitive approach – without compromising safety or schedules. Contact us today for all of your building needs.
