The world of startups has an infinite amount of factors that can impact the success of a business. Location can be one of these factors depending on the industry, service you provide, and type of business. There are some businesses that do better in a remote location as they can pay below industry norm without worrying about being outbid for talent. The same location for two different businesses can mean completely different results even if they are providing the same service. The following are tips to find the best location for your startup.
Businesses such as restaurants rely on a healthy amount of foot traffic in the area to thrive. Lack of foot traffic can cut down immensely on walk in customers for a restaurant which can lead to low tips. Low tips will lower the quality of server you are trying to attract and can cripple your customer service in the restaurant industry completely. Other businesses like that of digital marketing companies have a bit more freedom as many of your employees can work remotely. The only issue with picking a very cheap city or part of the city is the commute for potential employees might be too long. Decide on whether foot traffic is important for you or whether you should try to save cash flow for other important business issues.
Blend of Competitive and Affordable Salaries
One of the biggest costs for many companies is that of employee salary. There are some locations that will force a company pay much more than others. For examples, a digital marketer in New York will have to be paid more than one in Tampa as the cost of living differs grossly. For positions that you can outsource it is good to use companies that specialize in these certain things. One of the most popular positions to outsource is that of the IT department as these jobs tend to pay a lot if the employee is located in the US.
Renting Versus Buying
Once you have found the perfect location for your business it is time to start looking around. If you have already secured funding for your business and it has been proven to be a success then buying is a great option. For those startups that are less stable renting can help mitigate the risk that buying would take. This can also be seen as an asset for the company if you need to take out a loan at a later date. Renting is simply throwing money away on a monthly basis and renting can sometimes be more expensive than the company taking out a mortgage. This can mitigate bills like electricity especially if you are working during peak day energy pricing.
How Big of an Office Do You Really Need
The one thing that should not get in the way of you finding an office in the perfect location is that of ego. Many startup founders want to hire as many people as possible and be located in the biggest office possible. This is to make their company sound more impressive or look more impressive than it actually is. Only upgrade office size if you need to do so for productivity reasons or you simply do not fit in your old office. Take a look at the future business plan to figure out whether the time is now to have a large office or it is time to save the money and upgrade later.
As you can see finding the perfect location for a business does not have the same answer for all businesses. Take the time to research what will be best for your startup and whether location or the talent in the area will determine this for you!