Have you decided to start your own business? But, one problem remains: where do you base such a business? Finding the perfect location can be the first but most important step for any fledgling enterprise, so it’s important to do the right research beforehand in order to be fully prepared. The better you do this, the better you will find your startup does in its chosen business.
For that reason, here are some good ways to decide where to base your startup based on the merits of an individual city.
Consider the Competition
Setting up shop next door to your biggest competition can be both terrible and great for business, depending on your industry.
For example, being next door to a well-established and beloved show brand as a small shoe boutique could be a potential disaster. People know and love your competitor brand, so they might choose them as a matter of course. Whereas, it’s also possible that due to the like for like nature of the business you may pick up more foot traffic from relevant shoppers who come to that area for shoes. It all depends on the behavior of customers and the pendulum can swing either way on any given day.
As such, finding a position both close and a realistic distance from competitors is important. Starting a shop next door may be a little close for comfort, but being on the same street, instead, could be worthwhile. Something to keep in mind when choosing your startup’s city and specific location within that city. A property management team can help you make these decisions if you do not have a solid understanding of the city or the various competitors.
Is It a Niche Business?
If you are looking to start a business in a niche industry then location can be vital. Starting a comic book shop in a small town with no population under 65, for example, is a poorly located niche business (presumably). Finding a good location for your niche business, then, is all about knowing your market. Where do your ideal customer’s shop? Where do they live? That’s ideally where your niche business needs to be located.
Finding your niche in the first place can be difficult, so make sure you have this sussed out before trying to physically locate somewhere as well.
Startup Capital
Is there a city that seems to particularly attract startups? If so, there’s likely a reason for it and so discovering what that reason is can be vitally important. Sometimes it’s a simple fact that the capital city attracts a lot more business and startups – as with London – but, in other instances, it is simply based on the fact that the startup culture is particularly strong there. Something which can be said for a location such as Manchester.
The attraction of startups to cities such as Manchester can be a multitude of reasons. Cheaper costs, a solid community, and even something as simple as being outside of the capital can be seen as a great advantage in certain startup sectors. Growing a business away from the hustle and bustle of the capital, as well as away from major competition, can be a great way to achieve early growth as a small business. A smaller city overall can be the best place to start a new business.
Consider the Workforce
Starting a business in a city without the type of workers you need to flourish could lead to trouble down the line. Of course, you will rarely find a city without any of the skillsets you need entirely. But, it is possible that the better/more experienced candidates flock to a particular city and it would be better for you to set up your business there as well.
For example, there are plenty of articles and research on what cities have the better candidates for the technology sector. With many placing the order London, Manchester, Edinburgh, Bristol, Birmingham, and so on. The savvy startup doesn’t set up business in London, instead they aim for Manchester or one of the other lower ranked cities. As they likely have good tech candidates, but much reduced costs overall.
Overall, the one thing to keep in mind when it comes to picking the right city for your startup needs is to ensure you research thoroughly. Not every city will work with your business structure, niche or future growth plans. It is important to be aware of this and plan accordingly. Look for a location which suits your current and future needs, then watch your business flourish.
