When a business is founded, there are numerous considerations to take into account, and one key factor is where to locate the new enterprise because this can influence its future success.
Similarly, if a business is established and growing, and needs to relocate, where to move on to takes careful thought.
Here are ten key reasons why location is important when choosing where to set up, or move, a business:
1. Customer Access
Businesses stand and fall on their sales, so if yours is a business where customers need to reach you to buy, then easy access is essential. This is particularly crucial for retailers, relying on footfall, and of course, for hospitality, whose options for selling online will be limited.
Factors to consider here are parking, availability of public transport and the right demographic for your product or service.
2. Operating Costs
Different locations carry different rates or rents. Take into account affordability of the costs versus your need to be in that location. If it isn’t essential to site your business in a prime location then opt for a more cost-effective setting.
3. Supply Chain & Logistics
How important is it for you to be near your suppliers? If you are in manufacturing, for example, and there are hefty transport costs attached to your raw materials, you might want to be nearby. Similarly, if you have short lead times, and delivery is time critical, then close proximity will create a more efficient supply chain.
How important is it for you to be near your distribution channels? Once your products are ready for shipping, you might need to be located near key transport hubs like ports, airports or motorway network.
4. Competition
Understanding the level of competition in an area can influence your decision-making. Is yours the type of business to thrive in areas of high competition, because customers know that this is the ‘go to’ area for the products you sell? Alternatively, you might be better to locate in an area with fewer competitors.
5. Workforce
Do you need to be based where there is readily available skilled labour?
For example, tech companies will gravitate towards a location with a pool of talented tech workers, such as around universities.
Labour costs may also be a factor, and – although we have minimum wage rates – beyond that, average wages vary between locations.
6. Economic Environment
The local economy, and what local authorities are doing in terms of investment and attracting businesses, is another factor which could impact success. Areas with growing economies and strong business support are generally more favourable.
7. Local Amenities
You might decide locating near amenities like sports facilities, gyms, restaurants and cafes is an important factor. For example, you might want to partner with a local gym to offer your team complimentary membership, as a benefit, so they can visit before or after work, or in their lunch breaks. Similarly, you might like to have good restaurants or cafes nearby to entertain clients.
8. Infrastructure
Do you need a location with good transport links? A site where your staff, clients, and contacts can easily get to and from? What utilities are available? Is there high-speed internet? These considerations are usually crucial for businesses.
9. Brand image
For some businesses, where they are located is a key part of their brand. Being in the ‘right place’ so they are ‘on brand’ is essential to the image they are creating for customers and for potential recruits. Is creating that great first impression important to your business?
10. Future Growth Potential
When you choose a location, it’s important to consider not just where your business is now, but where you want it to get to. In other words, do you need room to grow? If so, then remember to factor that into your decision-making.
Need Any More Reasons To Relocate?
It’s clear that there are many factors to consider when choosing a location, and some will be more relevant to your business than others.
At Rombourne, all our locations tick the boxes for several of these criteria, including our last three points: infrastructure, brand image and future growth potential.
All our sites have excellent transport links, with great road and rail connections. They also come with all the utilities you need, including high-speed internet.
In terms of brand image, that warm welcome from our reception team, in superior serviced offices, provides an excellent first impression to your visitors and your team.
And as for future growth potential, we offer versatile office solutions, where you have the ability to quickly and seamlessly flex your office space to suit your requirements.
If you’re thinking of locating your business to serviced offices, we have centres in Bristol, Cardiff, Newport and Swindon. Please get in touch with the team to find out more, and we would be delighted to help.
