Location is a critical factor when it comes to commercial success. If you want your business to be profitable, choosing the right location for your premises is essential. Although the internet lets you connect to a global marketplace, this doesn’t minimize the importance of your physical location. By choosing the right town, city or country for your premises, you can transform your commercial performance. To learn more, take a look at these top four reasons why location is important in business:
Hiring the Right Team
When it comes to recruitment, hiring the right mix of talent is crucial. If you can’t attract top talent to your business, you’ll struggle to succeed in your industry. Of course, you’ll only be able to attract great employees if you’re located in an area that’s popular to live in. Similarly, you might want to select a location that offers a reasonable commute from outer suburbs.
Furthermore, some areas are known for being home to particular sectors. Silicon Valley in California and the Silicon Slopes in Utah are linked to the tech industry, for example. If you want to launch a global manufacturing firm, you may choose Build It Tasmania to create your commercial premises. Alternatively, finance companies may search for premises in the Square Mile of the City of London.
Capture Your Target Audience
If it’s not convenient for your target audience to visit your premises, you’re going to lose business. When your services or products can’t easily be translated into online sales, a poor location can be even more damaging to your business. If face-to-face sales and meetings need to be conducted, choosing a location that’s convenient for your target audience is the first step to building a successful enterprise.
Tax Liability
The location of your business has a determining impact on your financial liabilities and, in particular, the amount of tax you’ll need to pay. Tax rates can vary from region from region, so consider potential locations carefully before you commit to opening. If your tax liability is higher, you’ll need to generate more revenue to cover the extra costs. While higher sales can sometimes offset this, it’s a calculation you’ll need to make before you decide whether or not to take the risk of situating your premises in an area that commands higher taxes.
Cost of Real Estate
Whether you’re leasing a commercial unit or buying a building, the cost of your premises has a major impact on your business. Of course, securing commercial premises in popular locations is often more expensive, so it’s vital to ensure that a high-priced lease is going to be worth the extra expenditure. With a savvy property search, you can secure a lease or purchase a building that’s in an up and coming area. By doing so, you’ll minimize your costs but still gain access to your target market.
Choosing the Right Business Location
Selecting the right business location is more important than ever, despite the widespread availability of the internet. With the potential to lower your costs, enhance in-house talent and boost sales, the location you choose could be the key to commercial success.
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