The old saying says the first three things to consider for your new business are location, location and location. The right one makes it easy for customers to find you and employees to get to work.
In addition, where you set up shop can have a major impact on other aspects that have a profound effect n the success of your business. Consider these:
- Insurance costs
- Zoning regulations
- Room for future growth
It is essential to protect yourself with commercial property insurance. Too many things can disrupt your business, bringing with them financial disaster. Without business insurance, you could easily be put out of business.
But the cost of monthly premiums will vary based on a number of factors, including location. Keep that in mind when you are choosing a site for your company.
Here are three considerations that can affect your insurance rates:
#1. Property values: If your company is located in an upscale area, you will pay more. For example, a small dry cleaner in downtown Manhattan can expect to pay much more for insurance than the same size cleaner in rural Washington state.
#2. Climate risks: Hurricanes, floods, earthquakes, snow and ice storms and tornadoes are part of the landscape in different parts of the country. If your area regularly gets hit by one of them, your insurance costs will reflect that.
#3. State laws: Different states have specific laws that affect coverage costs. One example is the fact that almost all states require a company to carry workers’ compensation insurance. In addition, there are often additional requirements imposed by the state for specific industries, which may also factor in.
Each municipality has guidelines and codes that dictate the types of businesses that can locate to different areas. They range wide in what they require and need to be considered when you research places to start your company.
Regulations might require special work done to a building to make it acceptable. There might be regulations that specify the amount of parking available, how tall the building is, if green areas must be installed and how close the structure can be to the street.
These rules are usually based on safety concerns and aesthetics, dealing with attractive exteriors, reducing overcrowding and matching the look and feel of other construction in the area.
Room for Future Growth
Every company needs to consider this when researching a location. The goal is to grow your company. Keep that in mind when looking for a building or for property to construct your own.
If you can’t physically expand, you will need to start renting in the area. This is expensive and brings with it problems of coordinating the efforts of scattered departments.
Consider the need for future growth in the areas of parking, more office space and bigger manufacturing facilities. It can be the most cost-effective decision to locate your current business in an area with open space available.
It can be tempting to setup your firm in a location that has no future room for expansion. The rent might be perfect, the building attractive and amenities available close by. But if there is no room to grow, the choice could cost you big in the future.
Your business location impacts many areas of your business. Do your research so that its the right location for you, and make sure your building is adequately protected with business property insurance.