Choosing the right location of your business

Depending on what sort of business you are in, the location of your start-up can have a major impact on your business's success. Here are a number of factors to take into consideration when choosing the right location of your business.

Proven Templates & Contracts

Lemonade stand in the Utah desert.
In the right place at the right time!

Factors to take into consideration when choosing the location of your business

Being located in good neighborhood can help you draw in people walking by, whereas a bad location can conceal you and your business from potential customers. Not all businesses require a storefront and can get along fine with a home office or renting office space.

Here are a number of factors to take into consideration when choosing the location of your business:

1. Start your Business from Home

If possible and feasible for your business, working out of a home office can save lots of money. Many entrepreneurs who start a small business as a party planner or online service do not need a location and can manage working from home. It is, however, important to check your area's zoning laws to make sure that they do not restrict home-based businesses.

2. Consider Coworking Spaces

More and more coworking spaces are popping up around the country, giving small businesses the opportunity to benefit from having an office and from others who share similar values and are interesting in the synergy that can develop from working with other companies in the same environment.


The main attraction of coworking environments, as compared to business incubators for example, is the social and collaborative aspects of the process. Essentially, coworking means that people working for different companies share an office or a working environment, yet they work independently. This is a great option for home-based professionals, independent contractors, frequent travelers, or even high-tech startups.

3. Select a Certain Community or Region

When selecting a certain community or region in which you would like to set up shop, you will need to determine if there is a demand for your product or service that is not being met. It is important to verify that this particular community contains your target market.

Who is your buyer persona?

This can be done by doing market research and performing a demographics analysis- What kind of people live in close proximity to your location? Is there much competition? If you are unsure of how to go about doing this on your own, consider speaking with a business consultant.

Get your permits right!

Moreover, it is important to determine whether there are any rules or laws of that community that could potentially affect your business's performance.

4. Assess Location Factors

Below are a number of factors you should consider when selecting a location for your business. It is very difficult to find a location that will meet all of these factors, so determining which factors are more important to your small business will allow you to narrow down your search.

What sort of costs are associated with this location?

This can include property taxes, costs of repairs and equipment, heating costs, modifications/remodeling to fit your business's needs.

Are parking and public transportation available?

This is not only important with regard to how you will get to work and where you will park, but more importantly, your business's location should be assessable to potential clients and employees. Locations near public transportation are often more attractive for potential customers, especially for those who rely on buses or trams to get around. For those customers who do have cars, having parking spaces available can also be important.

Furthermore you need to consider:

  • Is the location on a busy street or a side road?
  • Are you located near any companies that offer similar products or services?
  • Is the location in a safe area or will you have to invest in an efficient security system?
  • How far is the location for your home?
  • What sort of zoning laws govern the area? Can these negatively affect or restrict your business's endeavors?
  • Does this location come with a particular history?
  • Why is this location available? Did perhaps the previous company in that location go out of business?

Things to consider

What permits do founders need?

As necessary at the federal, state or local level, every business is required to have one or more licenses or permits to operate. Find out why your business needs a license and what it is.

How to put your business plan into practice

Writing a business plan and securing financing of a start-up project are for many founders the first steps in the process of becoming self-employed. Once these items have been checked off, then the work is just about to begin. This is how you get to practice

Straight from scratch: How to launch a business

A start-up refers to a business in its beginning phases, owned by a person who is self-employed as either their primary or secondary occupation. The formal process of starting a business consists of the following steps.

photo credit:

© 2024 Zandura