Meta Description: Company site selection is more complicated than selecting a desirable lease in a hot postal code. Let us read more about how to choose the best business location.
Are you choosing a new location for your business?
Location is everything. Your firm’s location can significantly affect your capacity to save expenses, avoid hazards, attract personnel (and, in retail, consumers), and expand.
However, company site selection is more complicated than selecting a desirable lease in a hot postal code. What seems excellent on paper may be detrimental to your organization without the proper procedures.
Your site selection procedure must take into account the following factors to obtain the optimal future location:
- Access to major highways, interstates and major roads is convenient
- Convenient travel times for staff, vendors, and clients
- Proximity to landmarks, densely populated neighborhoods, and other high-traffic locations
- Access to tax rebates and other financial advantages
- The locations of your competitors
Market saturation encompasses locales where your target demographics are concentrated and areas where you are currently underserving.
Environmental problems, especially those that might endanger your commercial operations and more.
Discover the factors and principles of site selection, how to make a successful company site selection, and how location data for site selection software may accelerate the site selection process.
What does it mean to choose a location for a business?
Site selection integrates financial, demographic, and geographical research and analysis to determine the ideal site for a firm.
There are two primary categories of company site selection:
- Retail site selection: Frequently performed with catchment area research, retail site selection tries to strategically locate outlets in the best and most densely populated areas for your target market demographics. Locations of competitors are crucial.
- Corporate site selection: a growth center must be located in a financially friendly, well-connected region with a growing workforce to be a corporate office or headquarters. Corporate site selection promotes an equilibrium between low risk, lowest expenses, and maximum opportunities.
In site selection, research is crucial. The more useful data you have, the more intelligent and well-informed your business location selections will be.
However, research alone may become abstract very fast. Moreover, the enormous amounts of spreadsheet data required for sound decision-making can be pretty intimidating.
Most teams doing company site selection rely on location data for site selection software to convert their vast amounts of business location data into practical, simple, and usable data visualization maps in a matter of seconds.
5 fundamentals of the site selection procedure
Without guiding principles, site selection is aimless, putting your organization in danger of inefficiency, high costs, and destructive judgments. Follow these five guidelines:
- Websites for businesses should be speedy and straightforward to access
- Businesses should be situated in areas with dense populations of their excellent staff and clients
- Businesses should use the most advantageous financial incentives, such as tax credits and cuts
- You should minimize compliance difficulties, environmental considerations, entrenched competition, and other hazards on business websites
- Projections of long-term economic growth should guide the placement of commercial properties
Data mapping can facilitate the extraction of a list of suitable company sites with high upside potential. And location data for site selection software can assist in identifying the best option.
Seven motivating factors
Why would you want to be more strategic with site decisions than preventing disasters? There are seven essential factors:
1. Recruiting and keeping top talent. In most circumstances, this will indicate a position in the city core. Cities attract a growing number of young and multinational individuals. These locations become accessible as well.
2. Real estate expenses. It is the second most heightened expenditure after labor; thus, ensuring that real Estate is efficient is essential.
3. Groups. A network of interconnected enterprises might provide access to a larger talent pool, regulatory authorities, investors, and economies of scale for businesses. However, this might be costly; consider the advantages and disadvantages and determine what is most essential for your firm.
4. Taxation and regulation Keeping in mind that rules are subject to change, confer with your C-suite and decide if you want to be situated in a nation with lower tax rates or fewer restrictions.
5. A company strategy, technology, leadership, or development shift. Different structures work for various businesses. In certain instances, businesses choose a central hub with meeting places backed by a network of smaller spokes. Others, meanwhile, retain expansive, centrally placed corporate headquarters. Again, examine what works best for your organization’s function.
6. City vitality: Some governments are delegating authority to regions and cities in Europe, which may give business awards and stimuli. It might prove helpful if you are aware of burgeoning urban locations offering firms incentives.
7. Availability. Whether it’s gaining access to new markets, clients, or resources, mobility is vital for everyone on your team, not just your employees, to move about efficiently.
Location choices might be time-consuming. It entails analyzing company needs, engaging with stakeholders, evaluating possible locations, making site visits, and negotiating the best deal.
How to select a business location in 5 easy steps?
There is no substitute for a transparent procedure. Here you will learn how to pick a site for a business from the beginning steps and what to investigate to make the most of your data.
Step 1: Recruit the site selection project team
There are too many parameters, and the risks are too significant for an individual to pick a location. Create a site selection team comprised of essential personnel from your executive, operations, human resources, and finance departments. If necessary, even site selection specialists.
Step 2: Align your objective
What function does your new company website serve? Is the place retail or corporate? What are your constraints? Budget? How will you evaluate the success of the website?
Step 3: Gather and filter preliminary data
After establishing your criteria, collect the first data. With rapid access to internal corporate data, external commercial real estate data, and Census and Demographics data via location data for site selection software, your site selection map gains actual depth.
Step 4: Collect detailed information to determine the best solutions
Now that target regions have been identified, perform an exhaustive study on all significant factors that may affect a site’s feasibility. Gather data on:
- Access to major roads, highways, and airports, as well as Infrastructure of excellent quality
- Demographics by zip code for your talent pool and client base, including education and family income
- Competition, which includes size, location, and average pay
- Finances: utility and logistical expenses, labor costs, tax rates, and government tax breaks
- The local economy, including significant industries, current market developments, and projections
- Environmental issues might put your business, workplace, or employees in danger in the near and far future or that impact public policy, employee turnover, or operations
Step 5: Visit potential sites and make a decision!
Visit your top possible site options, do due diligence, decide, and negotiate your lease or purchase price. You now have a brand-new location for your business!
While the procedure is far from straightforward, location data for site selection software makes the most laborious and time-consuming tasks as simple as clicking a button and assisting businesses in selecting office sites. Ready to find a place for your business?
What are some additional site selection criteria for specific industries?
- Wholesale & Distribution: the logistics of the supply chain between distribution centers, suppliers, and customers
- Real Estate: current market conditions and prognosis, rental occupancy rates, sales numbers, and neighborhood-by-neighborhood information for real estate agents
- Private Infrastructure consists of existing electric, fiber optic, water, and sewage networks, government contracts, and expenditure information
- Airports: local domestic and international travel data, regional competition, connectivity to critical roads and interstates, and airline networks
- Restaurant Chains and Retailers: the local business climate, labor availability, supplier access, and local taxation
Want to get insight into the company and industry-specific factors?
Utilize location data for site selection software for secure and efficient site selection
With an industry-leading selection of enterprise-level and user-friendly features, the field professionals make it simple to select the optimal location for your organization. Here are a few (among several) instances.
Create intuitive maps of your possible sites, suppliers, and competition
Your site selection map should have many levels of pertinent information. You may filter the site selection software’s location data for quick retrieval.
Visualize market demographics with a single click
Without demographic information, a business location map is incomplete. With location data for site selection software, you have immediate access to the most recent Census Demographic Data, allowing you to understand your desired area’s population density, median family income, level of education, and more.
Use heat maps to meet market demand efficiently
With accessible hot spot heat maps, you can determine where you are successful and where you need to open sites, all from the data in your spreadsheet. Visualize and monitor your data concentrations, detect hot places, and locate cold spots.
Identify geographical and environmental characteristics that pose a threat
A poor weather system may instantly set your business back. As a result of climate change, you may be blindsided by business-destroying circumstances. Identify geographical and environmental concerns with ease with Google Maps’ extensive satellite imagery.
Real-time optimization of routes, travel times, and logistics
When it comes to employees, clients, and delivery vehicles, driving time and stress may significantly affect your bottom line.
With real-time data, location data for site selection software may help you measure how far your business can reach, where your business can go, and where your business should be.