Most entrepreneurs and future business owners are aware of the process of opening a new business: choose a business idea, write a business plan, create a business entity/structure, apply for/obtain business licenses and business permits, and open a business bank account. For those planning on operating in person, you must also choose a business location— but first, you must decide if you want to build your property from the ground up, or if you want to rent/purchase a pre-constructed business. Here’s what you need to know when it comes to your business’s location— whether you build or buy.
Choosing a Location for Your Business
As 2020 has shown us, online businesses fare better during pandemics, but that shouldn’t deter you from opening a physical storefront. However, it’s still a good idea to operate both in-person and online in the event of another global pandemic.
Where you locate your business is just as important as any other aspect of your business. The type of business you operate will determine the best location for your business. Overall, you’ll want your business to be located near like-businesses (for easier consumer access), but you also don’t want to be located too close to your competition. For example, you’ll want to locate your business within or near a shopping district if you’re opening a boutique, but not if you’re opening a construction business.
You’ll also want your business in a place that makes it easy to connect with your suppliers and vendors to avoid any potential delays. Other factors to consider when choosing a business location include:
- Access to public transportation
- Sufficient parking for customers
Building a Building vs. Buying/Renting a Building
Sometimes the perfect location for a new business is in a developing area. If you’re able to, building your business’s physical location from the ground up can present many advantages for you. Working with an architect, interior designer, and contractors, you’ll be able to design your building exactly the way you want it and add (or omit) features that suit your needs. You may also be eligible for tax breaks and even grants and loans to help with funding for building from the ground up, and even a deduction for green building.
These tax deductions, grants, and loans are extremely helpful since building from scratch can be pretty expensive. You’ll first need to purchase the land that you want to build your business on, and then there are the materials, hiring the contractors/architects/designers/etc., plus you’ll have to make sure that you’re meeting the zoning requirements. Building from the ground up takes a lot of time, energy, and money in the beginning, but it gives you more control in the long run.
On the other hand, buying or renting a commercial building or space within a building can be more convenient. You won’t have to worry about land and hiring architects when you use a pre-constructed building. However, you may need to do some renovations on a pre-constructed building.
Building a Commercial Building
If you do choose to build a building, there are a few other things that you should know after you’ve chosen a location, bought land, and completed the designing process with your architects and interior designers. Before construction can begin, you’ll need to:
- Obtain building permits and insurance (builders risk insurance, general liability insurance, and workers’ compensation insurance).
- Establish a construction team (project manager and subcontractors, field engineer, etc.).
- Obtain bids from vendors
- Ensure the general contractor secured all building materials.
Once all of this is taken care of, construction can begin. First, you’ll need to prepare the site (excavation, remove plants and other vegetation, etc.), then you’ll be able to lay your foundation. Businesses in north central Indiana can have their concrete foundation laid with GRA-Rock. When the land is cleared and the foundation is laid, it’s pretty much smooth sailing from here: framing, roofing, siding, HVAC/plumbing/electricity, interior, and landscaping.
Building from the ground up takes a while, so make sure to give yourself plenty of time if you choose this route. If you’re short on time, it’s better to choose a pre-constructed building to avoid any delays to your business plan. No matter which option you choose, the location of your business is still going to be very important for your success. Take your time and do your research while you’re still in the planning phase so that you can determine the best course of action.