Picking the perfect spot for your business isn’t just about how cool or aesthetic the place looks. Sure, having a location that fits your vision matters—but if it doesn’t help you grow, fit your budget, or meet legal requirements, it can quickly turn into a nightmare.
This guide walks you through the real questions you need to ask before signing anything, plus some practical tips and resources to help you actually find a location that works.
What Kind of Location Does Your Business Need?
Before you start looking at neighborhoods or buildings, take a step back and figure out what type of space makes sense for your business. It sounds obvious, but you’d be surprised how many people skip this part and waste time checking out places that don’t even fit their business model.
Here’s a quick breakdown:
- Retail Space: Think storefronts, malls, or busy commercial streets. Great if you rely on walk-ins or need visibility.
- Office Space: Ideal for service-based businesses that don’t depend on foot traffic. Can be a co-working space, shared office, or full-blown commercial office.
- Industrial Space: If you’re manufacturing stuff or need a warehouse, this is your jam. These are usually outside the city center.
- Home-Based: Freelancers, online businesses, solopreneurs—if you don’t need a physical storefront, this could save you a ton.
- Pop-up Space: Temporary setups. Good for testing a new market or launching a seasonal idea.
- Mobile Business: Think food trucks, pet grooming vans, or mobile repair services. Your business goes where your customers are.
Once you figure this out, your search becomes so much easier. Not sure what category you fall into? Keep reading—some of the next questions will give you more clarity.
Want more info? Check out our deeper dive into what to look for in office spaces.
What’s Your Realistic Budget?
Let’s be real—your budget will make or break your location options. And it’s not just about rent.
Sure, monthly rent is a big piece of the puzzle, but you’ve also got to think about:
- Startup costs
- Renovations
- Property taxes
- Utility bills
- Insurance
- Any government fees or permits
Ask yourself:
- Will this place need a bunch of work before you can even open?
- What are the local tax rates—sales, income, and property?
- Would a different city or state save you money?
- Can you pay your staff a fair wage (at least minimum) with your current budget?
- Are there any grants, subsidies, or small business incentives you can tap into?
💡 Pro tip: If you haven’t done it yet, create a detailed financial forecast. You don’t want to get halfway through your build-out only to realize you’re out of cash.
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Does This Place Fit Your Customers’ Expectations?
Your location says a lot about your brand—even if you don’t realize it at first.
Let’s say you’re opening an artisanal coffee shop. If you set up in a strip mall next to a fast-food joint, it’s probably not the vibe your ideal customer is looking for. On the flip side, if you’re near art galleries or indie bookstores, it makes more sense and helps you attract the right crowd.
Consider:
- The neighborhood vibe—does it match your brand?
- Local demographics—age, income level, lifestyle
- How close competitors are—and whether that’s a good or bad thing
People won’t just stumble into your store or office. You need to meet them where they are—and make sure the surroundings feel right to them.
Is the Area Actually Safe?
Safety isn’t just a checkbox item—it can impact everything from customer traffic to hiring.
You might find a super cheap location, but if it’s in an area with high crime or low foot traffic, that low rent may cost you more in the long run.
Ask these questions:
- What’s the local crime rate?
- Is it well-lit at night?
- Is the area visible to other businesses or roads?
- Is there regular foot traffic?
- What’s the general reputation of the neighborhood?
If people don’t feel safe visiting your business, they won’t. It’s that simple.
Need help with this? Read our guide on setting up a safe work environment.
Is the Area Growing?
You don’t just want a location that works now—you want one that’ll still be working years from now.
Look for places with signs of growth. This usually means better foot traffic, more potential customers, and more opportunities to partner with other local businesses.
Look out for:
- Population growth in the area
- New businesses opening nearby
- Rising property values
- Planned infrastructure improvements (like new public transport lines or road expansions)
- Business networking opportunities
Think about what happened in Silicon Valley during the tech boom. Businesses that got in early benefitted from the surge. No, you don’t need to find “the next Silicon Valley,” but spotting trends early can give your business a serious edge.
How Accessible Is the Location?
You could have the most perfect office or storefront, but if no one can get to it easily, it’s going to hurt your business.
Accessibility looks different for every business, but generally, you want to consider:
- Is there decent parking?
- Is public transit nearby?
- Are there other businesses or destinations nearby that bring in your target customers?
- Any barriers—like stairs, lack of signage, or confusing entrances—that could turn people off?
You don’t need to tick every single box, but if you’re lacking in too many areas, it might be a problem—especially for retail or food businesses.
Can You Legally Operate Here?
Before you fall in love with a space, make sure you’re actually allowed to run your business there.
This includes checking:
- Zoning laws: These decide what types of businesses can operate in certain areas. Even home-based businesses have zoning restrictions sometimes.
- Permits: You might need a business license, signage permit, fire permit, or health inspection sign-off.
- Building codes: Does the building meet safety and accessibility regulations?
- Landlord approval: If you’re renting, make sure the landlord is okay with your type of business—and any renovations you want to do.
- Restrictive covenants: Some areas have rules about noise levels, operating hours, etc.
- Insurance: Make sure you’re covered with liability, property, and business interruption insurance.
This part isn’t the most exciting, but skipping it can delay (or even kill) your launch.
Read Also: How to use SMS Drip Campaigns for Business
Where to Start Your Location Search
Once you know what you’re looking for, the actual search becomes a lot less overwhelming. Here are some places to begin:
- Your local Small Business Development Center (SBDC)
- The Chamber of Commerce
- Commercial real estate websites
- Good ol’ Craigslist (yep, still useful)
- Drive or walk around neighborhoods and look for “For Lease” signs
- Talk to a local commercial real estate agent
If you’re going fully online or starting from home, don’t worry—we’ve got guides on how to do that too.
Final Thoughts
Finding your business location is a big step—and it’s one you really don’t want to rush. Take your time, ask the right questions, and look beyond the rent price. The right spot can make everything from marketing to hiring and operations way easier
