When starting a business in the modern era, some people say that the idea that location matters is outdated. They point out that many consumers find businesses online, so they don’t need to stumble upon them in real life, and that many online sales just involve shipping out a product, so the customer never comes to the business.
These are valid points that do impact some businesses more than others, but the location still matters in many ways. Here are just a few:
- Real estate costs are vastly different from one area to the next. The sheer cost of running your business — and how much you need to make to stay in business — could be tied to where it is located.
- You still want to attract talented workers to be employed by your business. Where you put it determines how large the pool of potential workers will be.
- For some companies, it is good to be located near other supporting businesses. If you need specific parts and materials, for instance, locating your company near that supplier cuts costs and helps things run smoothly.
- If there is an area near you that is on the upswing, perhaps due to a move to revitalize the neighborhood, putting your business there could make it a part of that area’s success.
- Many businesses, like bars and restaurants, can’t capitalize on the online boom. Location is still the key.
As you start your company, think carefully about what location you want, what needs your business has and what legal steps you need to take.