Deciding where to locate a business is one of the most important things in starting a commercial enterprise. The location of the office space has a significant impact on the long-term performance of the company. A neighborhood that has been appropriately selected has the potential to boost the income capacity of the business. For example, an office space that is located in the heart of a metropolitan area should be easy to reach and readily visible to potential clients as this aspect alone can increase the ability to gain new clients.

Finding a suitable area for a company is not just about its proximity to targeted clients. Following are a few other important criteria to consider when choosing a business location:

• Proximity to Suppliers – For businesses that deal with a physical product, it is important to choose a site that is in close proximity to suppliers, particularly if the product to be transported is time sensitive in its delivery. The advantage of choosing an office location near a supplier is that it reduces transportation expenses for the products and ensures a timely delivery from point A to point B.

• Proximity to Employees – If a business is already established and has a workforce, it is also important to consider the accessibility of the company work-site for the employees. Choosing a location that is in a remote area for a majority of the employees could cause workers to encounter traffic along the way and may result in late arrivals. Any type of long distance travel could also increase the cost of transportation for the employees.

• Proximity to Strategic Partners – There are some companies that require business partnerships for their operation. In such cases, it is crucial to choose a location that is near their business partners. If a company will require partnerships in the future, it is crucial to choose an area near such potential partners so such relationships can be easily handle. Good examples of strategic partnerships are the business hubs in the Silicon Valley of California.

• Proximity to Clients – As mentioned above, it is very important to choose a location that is close to targeted clients so that the business office can be easily accessed as needed. If the company provides services to students, then it would be preferable to choose a spot close to a school. One can also visit the U.S. Census Bureau to see which areas have the highest number of the targeted clients for that particular type of company.

• Proximity to Competition – Another important consideration when choosing a company location is its closeness to competing companies. For some companies, being located close to competitors can be an advantage. For example, if a certain location is well-known for a particular company, then staying close to competitors can be an advantage; however, this does not necessarily work for all types of businesses, so company owners should carefully consider where to position their offices in relation to the competition.

• Safe Location – It is also important to consider safety when choosing a worksite. Employees and clients should be able to walk in and out of an office without having to worry about safety. Select an area that has a low crime rate and high police visibility. Visit the nearest police department of the chosen spot to learn the crime statistics within the area.

• Zoning Ordinances – Cities implement zoning ordinances, which basically dictate how a certain region can be utilized such as whether it is exclusively zoned for residential use or for certain types of companies only. When choosing a location, consider whether the zoning ordinances implemented in the area is suitable for the type of business being established.

The business locale is a crucial ingredient in the success of a company, which is why careful planning should be undertaken when choosing a location. Remember, where a company locates their office is important!