Choosing The Right Location For Your Small Business
Location: it’s one of the most important tools any small business owner has. The right location can make or break a business. In terms of making the right decision, there are a number of factors to consider. Do you want to buy or lease? What demographics are you looking for? Of course, price is always a serious consideration, encompassing more than just the cost of the property. What is the tax rate for the locations you’re looking for? How much can your business actually afford to spend while still making a decent profit? In choosing a property for your business, there are so many things to consider, it’s hard to know where to begin. To make the process a little easier, we’ve compiled a basic how-to guide for choosing the property that’s right for you. Having a clear picture of where you are and where you want to be is a major step towards finding a profitable location for your business.
Steps Towards Choosing the Right Location
The U.S. Small Business Association (SBA) is an excellent resource in aiding, assisting and protecting the interests of small business owners. In terms of choosing the right location for your business, the SBA offers the following tips:
Know what you need in a location: Beyond attracting customers, look at the proximity to suppliers, the local labor force, and the competition. Consider the safety of customers in the areas you look at, as well as what being in that area says about your company.
Thoroughly examine finances: Consider what taxes will be like at the location, as well as what the minimum wage is in the area. Check out any economic incentives the area offers, as well as any hidden costs in terms of upgrading or renovating the property.
Know local laws and regulations: It’s extremely important to be aware of local laws, regulations, and ordinances that may impact your business.
In addition to the above, do your own research. Talk to current and former area business owners, visit the chamber of commerce, mention the location to some existing customers to get feedback. Proper preparation will pay off in a location in which your business can thrive.
Choosing To Lease Or Buy
In deciding whether to lease or buy commercial property for your business, it’s important to know the risks as well as the advantages. While purchasing commercial real estate can be a smart investment, keep in mind two caveats:
- Be extra careful when considering the location. Today’s trendy neighborhoods may be not so popular several years down the line. New developments spring up catering to desirable demographics, yet fail at sustaining long-term interest.
- Be aware of the extra strain that purchasing a property may put on your cash flow. Be sure to allow for dry years or downward turns in the economy. In the event of unexpected events or expenses, you want to be confident you’ll be able to handle your obligations.
Contact Our Experienced Real Estate Attorneys
When considering a property for your business, whether you are looking to lease or buy, you want someone on your side looking out for your best interests. At Cavallo & Cavallo, our experienced New York real estate attorneys can help you to get the commercial property your business needs to thrive. With offices in the Bronx and Westchester, we’re your neighborhood law firm. We’ll provide efficient and effective legal service to handle all your real estate needs. Call us today.