One of the questions that arises when creating a small business is where the business is going to be located. For some small businesses owners, the location is their home especially for the first few months while the business is picking up. Some people prefer to get a location separate from their home so that their work does not interfere with their family life. There is no wrong way to go about finding a location for your business. It is about what makes you more comfortable. About 20% of all small businesses are home based businesses. In the early months this is ideal because it will give you a chance to create a customer base while building up resources that you can use later to open your own business at a different location. In order for you to operate a home business, you must check with your local zoning office to find out if this is possible. Some areas will not allow you to run a business based out of your home.
If you are unable to run a home business due to a zoning problem you may want to seek the help of a lawyer. A lawyer would be able to help you find the means necessary to open the business based upon many different sanctions that he may try to get revoked. One typical sanction is spot zoning in which one specific spot, in this example your home business, would be allowed to operate even though the zone is not designated for commercial use. This spot zoning is also useful to a detached business that would want to open in a restricted zoning area.
To open a detached business (a business that is not attached to your home and is not a home business) is a common problem that many people have. The first step that should be taken is to again check with the zoning committee to see if you are able to open a business there. If that is available, you must then look at the option of whether or not you want to buy or lease the building.
If you lease a building, you may be able to back out of the deal should you not be able to break even with the business. This should be stated clearly in your contract before you sign. You will also want to check out the conditions of renewing the lease. If you successfully start a small business in a building only to have your lease run out at the end of the year without the owner wanting to renew it, you will then have the task of transferring all of your materials as well as customers to a new location.
The lease will clearly state what is to be paid by whom. You will need to find out whether or not you will be required to pay any of the taxes on the building for the owner. The exact measurements should also be noted on the lease.
When you lease a building, you will be able to start up with less money to initially get the business started. You will also be able to have more liquid assets that you can pour back into the company without having to go through the red tape of having to take out more and more loans from the bank.
You will also want to have in the lease a non-compete clause. This will state that the landlord will not be able to rent space in or near your building to a competitor. It is hard enough as it is for you to attract customers without having to worry about your rival having a space directly next to you and able to watch all that happens within your store.
If you choose to buy a building in order to host your business, it will cost you more. The same guidelines as above are recommended for you to find out if you will be buying a building. You will also want to have the building checked by an appraiser to find out if you will be able to get a better deal than what is being offered to you. Do not be afraid to spend money so that you are able to save money by having the building sold to you at a cheaper price.
You may also want to check out foreclosed buildings. Many websites list foreclosed buildings that you will be able to buy for pennies on the dollar. You may also want to call your local banks to find out of they have any property available that has not been advertised to the general public. Many times you are able to get a deal before anyone else even knows that a place is able to be bought.
The location your building is in will determine the types of people who are able to see your business. If your business is inside of a large complex people may not be able to see you when they are looking from the outside. Large complexes usually will not allow you to advertise on the outside of their building except in rare instances. If your business is a casual or impulse sort, this may not be the best place for you to establish a customer base.
You will also want to take in the proximity a location has to a major intersection. You can obtain reports from the Department of Transportation and find out how often a road is being used. The more traffic a road has, the higher probability someone will notice your business.
Your business will also want to have available space so that you are able to have all of the materials that you need without being cramped. Conversely you will also not want to obtain a building that has far too much space than you need. The extra space will be wasted until you are able to find something to go there. Unless you plan to expand your business quick it is best to find a place that has just the right amount of space so that you are comfortable.
The location of your business is one of the most important things that you will choose so that people are able to be attracted towards your business. It is a situation in which you must weigh the pros and the cons of the situation carefully before you find yourself over your head.