How to Buy a Business or Choose the Right Location for a Business in Minot
If you're choosing the right location for your next business, many factors come into play including cost, remodeling costs and of course, location. You want to choose a location that provides optimal exposure to your potential customers. This may or may not be a location that is on the main street but a destination location as long as your business provides ample satisfaction to the customers once they arrive. Businesses such as retail shops, boutiques and restaurants typically need the exposure of a well-traveled street or road in order to get passer-byers to stop and come in. Businesses such as manufacturing or wholesale industries may not need this type of exposure and most people will drive to the location when needed.
Some things to consider when choosing the right business location are:
- Competition. Will other people or businesses close by be competing for your business?
- Branding. Is the location consistent with the image you want to portray and maintain?
- Future growth. It's the location adequate enough for further growth and provide the space you may need in the future?
- Vendors. Is a location easy enough for your suppliers or vendors to get a hold of you and find you easily? What about for large shipments and trucks?
- Safety. Consider the crime rate for a particular area. Do employees feel safe alone in the building or walking to and from their vehicles?
- Zoning. You want to determine that the location is zoned appropriately for the type of business that you plan to maintain. You want to make sure that you can conduct your type of business in the location and if you need building permits and licenses if you plan on going outside the location to conduct business.
- Employees. Does the area have enough potential employees for your type of business? Will be difficult for employees to get to the location and is parking an issue?
Consider all costs involved in purchasing a business.
- Taxes. You'll need to determine income, state and local city income tax and property taxes that you'll need to pay a particular location. Some locations may have more benefits than others.
- Economic incentives. Your business location can determine whether you qualify for certain government business programs. These state and city small business loans and other financial incentives can make getting the business and obtaining the loan much easier.
- Hidden fees. Most places are not business ready for the type of business that you plan to conduct. You may need to consider renovation costs, decorating, system upgrades, wiring, plumbing and electricity.
- Employee fees. You'll need to check with state and local requirements on minimum wage and verify that you're paying your employees appropriately.
Read more: Understanding Rentable Versus Usable Square Feet in Commercial Real Estate
Unusual issues that are usually forgotten about until you actually move-in.
- Parking. You'll need to find out how much accessibility you, your employees and your customers will need to maintain the business. Is the business hard to get to? Do people have to access the property on foot and will this maintain enough business for your needs? Is there street parking or parking lot? What people have to pay for parking in order to get to your business? These are things to consider before choosing the location.
- Close proximity to other businesses. Sometimes being close to similar businesses can actually be a benefit to yours. There's good and bad in both; being the only hot dog stand in a five block radius may mean that you get a lot of customers but only if there are businesses around that can provide you with hungry employees. If your hot dog stand is close to a pizza joint, a coffee house and a gelato shop, it might be a great benefit for those looking for a wide variety of dining options.
- Consider the history of the site. Are you choosing a location that has turned over business numerous times in the last 10 years? There could be something more going on than type of business. The location, types of employees or even the type of customer may be a huge hindrance to the location. It might be better to start over somewhere fresh than revitalize an ailing business.
- The buildings infrastructure. Many older buildings may not have the right infrastructure to support the high-tech needs of contemporary operations. You want to make sure that the building has adequate electrical, telecommunications and plumbing. If you're operating a business that generates a lot of heat such as a pizza place with a high heat oven, you want to make sure that the business has adequate air conditioning so that employees and customers are both comfortable.
- Utilities. Talk with previous owners or renters about the utilities at a particular location. If utilities are astronomical, it may not be worth it to set up business in this spot. Sometimes utilities can be included in leases but you'll want to ask utility company for a summary of the previous year's usage if the location was occupied. If not, try to find a year that it was occupied with a similar business to find out how much you'll be spending each month.
Read more: Can I Use a Grant to Buy North Dakota Commercial Property?
There are a lot of issues to decide the right business and location for your needs. We love to help people start their business, grow their business or purchase the right building in the right location. For more information on businesses or commercial property in Minot, contact our office today.