Choosing the correct locality to set up your office can be a very challenging job, especially since your decision will have direct repercussions on the success or failure of your venture. There is much more to it than what meets the eye, because a poorly made choice while shopping for business locations may result in irreversible damage.
As an entrepreneur, it is important for you to have a clear picture in mind as to what you want, but sometimes it may get difficult to strike a balance between affordability and personal preferences. Given that the decision is a difficult but much needed one, below are listed six factors that one must not forget while hunting for the perfect spot.
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Depending on the kind of product or service that your startup is offering, it is very important that you select the right kind of locality. If yours is a venture that is offering services to a local customer base, then you may consider thinking about the economic status of that locality. For example, if you are a startup that provides food services, you would want a locality that has a large demand for cooked meals.
While choosing a locality, always keep in mind that it must be accessible to your customers, employees and, also, suppliers. Select a locality that can be accessed by all means of transport fairly easily. Make sure that your new office space has access to car parking facilities and is accessible to people with disabilities.
A startup, being small, may be able to benefit from being located near competitors and big businesses. If the locality that you select already has ventures similar to yours, don’t hesitate, because then you might have a chance at beating their prices and getting your product sold. Also, you might be lucky enough to catch the overflows from already existing big businesses.
Wharton professor David Bell, in his book Location Is (Still) Everything, argues that geography plays a major role in brand preferences. For entrepreneurs, the simple logic should be to place the products in settings with maximum visibility. By doing this, you'll reap the marketing benefits of maximum visibility.
Ability to raise capital
There is some sort of unwritten maxim that inevitably makes venture capitalists invest in companies that are closer to them. Scott A. Jones, a veteran entrepreneur and venture capitalist, believes you can launch a great company anywhere, but he admits that his Midwest location hasn't been ideal for raising private capital.
History and image of the locality
Your address says a lot about the company, especially to consumers. If your target is the local market, this factor becomes all the more important; be sure to dig into the past history associated with the location of your choice. Landing up with a space that is infamous for failed ventures might just hand you a handicap right from the start.
Always make sure that the locality you select has a similar vibe and culture to that of your venture; you would like to be associated with a healthy neighbourhood. Although cost becomes the constraining factor for every entrepreneur, a little brainstorming and research can get you that perfect place for your set up.