Choosing A Location
Choosing your location is one of the most important decisions you will make as a business owner. In many industries, it can be the difference between succss and failure.
If you are opening gas station, there is a lot more than finding an empty lot. You must consider accessibility, competition, traffic flow, safety, zoning regulations, local labor market and a host of other factors. Just because people pass by it, doesn't mean it's a good location for your business. The following inforation is a combination of my experience and the advice given by the Small Business Association's tips for choosing your business location.
There is a lot more to consider than your monthly rent or mortgage payments:
- Hidden Costs: Most businesses have costs that are not obvious. A lot of money can be spent rennovating a building or on an IT system. Make sure to take these costs into account when choosing your location.
- Minnimum Wage: While there is a national minnimum wage, the rate can be increased by a state-by-state basis. If the rate is higher and you live near the border of another state, it might be more cost effective to open your business across the state line. Here is a map of the minnimum wage by state.
- Taxes:Taxes can greatly effect your cash flow. Sales taxes, income taxes and property taxes can vary by state. It might be more affordable to open your business in another state. Also, sales taxes and property taxes can very by county, so opening your business in another county could be an alternative to moving states.