DALLAS--(BUSINESS WIRE)--Anyone who has bought a house or had other real estate dealings has likely heard the familiar phrase “location, location, location.” The quality of the area where a residence sits is tied to the home’s overall value. The same can be true for a small business. Finding an ideal spot to set up shop can lead to positive exposure to potential clients.
David Kiger, founder and executive chairman of the global logistics company Worldwide Express and a major investor and strategic advisor for a diverse portfolio of ventures including Alef Mobitech, Exos Transport Group and beGlammed, shares six key factors to consider when choosing the right location for your startup.
- Consider a move. “It may be instinctual for a prospective entrepreneur to assume his or her current home is a good place to start a business. Making a move to another city or state is a big personal shift, so adding a startup effort on top of that can be daunting,” Kiger says. “However, it may be beneficial to do some research to figure out where the best place would actually be for your business. There is no shortage of reports that declare where business owners should flock to and where they will have the best chance to succeed.”
- Access to funding. “A major move to either coast likely isn’t feasible for the bulk of prospective entrepreneurs,” Kiger explains. “Yet there are startups that could clearly benefit from shifting to more fertile ground like Silicon Valley. Surrounding yourself with potential investors is a great way to find someone that will support your vision.”
- Community. “Beyond the macro issues of identifying the right city and state, small business owners also need to analyze how their business would fit in the community,” Kiger shares. “By recognizing where their potential customers are, where they congregate, how they spend their money and how to reach them, they can refine the search. Economic and demographic factors play a significant role here.”
- Foot traffic. “Most small businesses — depending on their products and market — will want to be visible enough to catch a potential client’s eye. Granted, acquiring a prime section of a busy shopping area won’t be cheap,” Kiger says. “But a strong physical presence can go a long way in attracting foot traffic, just as a strong online and social media presence can attract web traffic.”
- The details. “For an entrepreneur who has identified a major move is needed in order to launch a business, there is an abundance of details that may not be top of mind but should be investigated,” Kiger explains. “Looking into factors like local government rules, taxes, parking availability and public transportation are important to look in to when choosing your business location.”
- Competition. “In a perfect world, a small business might be so unique and so in-demand that it would earn the status of being 'the only game in town.' That’s not terribly realistic, however, as competition — physical and online — is seemingly everywhere,” Kiger says. “In determining a location, special attention must be paid to the other businesses that are already established. Well-known companies have the advantage of time, reputation and client base.”
On the other hand, there are those who veer away from the “location, location, location” theory in business. The rise of online commerce introduced revolutionary shifts in the past several decades, so it’s important for business owners to also establish an effective web strategy. Overall, both the physical location of a business and its online presence are crucial when starting a business. It’s up to business owners to come up with effective strategies to handle both in order to meet their end goals.
About David Kiger
David Kiger, founder and executive chairman of the global logistics company Worldwide Express, is a major investor and strategic advisor for a diverse portfolio of ventures including Alef Mobitech, Exos Transport Group and beGlammed. Kiger offers advice to entrepreneurs through his blogs on leadership and helping socially and economically disadvantaged businesses. Follow him on Twitter: @DavidKiger