How to Choose a Right Location For Your Business?

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Selecting a location for your business determines its success and failure.  But more than that, business location is vital for your eminence and also for your brand. For a small business owner or a start-up, choosing a location for an enterprise is perhaps the most important decision that needs to be taken after thorough research and planning. All parameters affecting your business goals need to be assessed before going to select a location for your business. It necessitates looking at the demography of the particular area, visualising the competition, accessing the budget needs, supply chain assessment, understanding the tax laws and how they might affect you, and so much more.

Here are some points that can help you in choosing the perfect location for your business.


Most of the business people choose a location that provides ample features like parking area, volume of premises, brand exposure, reputation of the neighborhood etc. However, there are other factors that need to be considered before choosing a location for your business. A perfect business location needs to be a balance of all the components.

Number of Competitors: – Although for some businesses, such as for real estate, choosing a location that have many other similar businesses can be an advantage for them. However, this factor may or may not apply to other business types as having too many competitors can affect your sales and profit.

Brand Image: – The location you choose ought to be consistent with the image you want to perpetuate. It is, therefore, very important for a location to meet your brand reputation and image.

Local Labour Market: – The office needs to be in an area that has sufficient human resource which makes it easy for your business to set up and establish quickly.

Future Growth and goals: –The location should support your future goals and growth. It should be well-connected besides providing all basic amenities.

Safe Location: – Safety is a priority for anyone. Before choosing a particular location, it is very important to assess the area for safety purposes. The area needs to be safe for employees and also for your customers.

Proximity to suppliers: – Apart from safety, the location should not only be assessable for the suppliers but also at a minimum possible distance from your suppliers. If this factor is not taken into consideration, stress on your budget will be evident.


Besides assessing your requirements and working out on what you can afford, you surely need to consider the money factor.

Taxes and tax rates – Tax rates vary from area to area. Do your research on all types of taxes such as income tax, sales tax and property taxes.  Dubai offers myriads of opportunities for start-ups and its tax free system has already attracted a large number of entrepreneurs to set up their businesses.

Hidden Costs – Not all business spaces are ready to move in. Therefore, before choosing the premises for your office make sure to include costs like renovation, IT system, designing and that too within the budget.

Minimum Wage – This also need to be taken into consideration while making a decision about business location. In case you are re- locating your business, this might affect your payroll costs negatively.

Government Incentives – In order to expand business environment, governments run various economic business programs. However, these programs are limited to some specific areas where government wants to increase entrepreneurship and businesses. So, while choosing a location, make sure that it qualifies for government economic business programs.


Well, yes! Whether you are new comer, or a well-established businessman, in both cases consultation is required.  For start-ups it is very difficult to assess every parameter of business even if they possess the best business idea. Although they have the best of skills and techniques, but a successful business is more than this. There are many factors that require a vision of experience, expertise and knowledge, which is why a proper consultation is necessary. In case of well-established business, many circumstances necessitate consultation. When businesses are in need of a catalyst for change, business consultancies can bring it.  They provide services to help businesses improve their performance and efficiency by identifying core issues and providing solutions.

Moreover, business consultancies are experts of the market and know exactly which location is best suited for your business.  As they build businesses more often, they have enough knowledge of the factors that decide the success or failure of a business.

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