Starting a business is no easy task. It takes a lot of hard work, dedication, and planning. One of the most important decisions you will make as an entrepreneur is where to set up shop. This can be tricky, especially if you are starting a business for the first time. When choosing a building for your new business, there are many factors to consider. Here is a look at six of the most important ones.
1. What Type of Business Are You Starting?
The first step in choosing a building for your new business is to determine the type of business you are starting. This will help you narrow down your options and find a space that is best suited for your needs. For example, if you are starting a restaurant, you will need a lot of space to accommodate a kitchen and dining area. If you are starting a retail business, you will need a space that is large enough to store inventory.
Once you know the type of business you are starting, you can begin researching buildings that fit your needs. Keep in mind that not every building is suitable for every type of business. You may need to adjust your expectations or search for a space that is specifically tailored to your industry.
If you are unsure what type of business you want to start, consult with an experienced business consultant. They can help you determine the best course of action and suggest buildings that would be a good fit for your company.
2. How Much Space Do You Need?
The amount of space you need for your business will depend on the type of business you are starting and how much equipment or inventory you will need to store. Remember, keeping your machine tools dry and free from the elements can help them last longer.
It is important to overestimate the amount of space you will require rather than underestimate it. This will leave you with enough room to grow your business and avoid having to move to a new space in the future.
3. What Is Your Budget?
One of the most important factors to consider when choosing a building for your business is your budget. Keep in mind that you will need to factor in the cost of rent, utilities, and other expenses related to leasing or owning a building. Make sure you have a realistic idea of how much money you can afford to spend on a building.
If you are purchasing the building, ensure that the mortgage payments and other associated costs are within your budget. If you are leasing, make sure the monthly rent is affordable. If you are a senior (62 and older), you can consider getting a reverse mortgage to help finance your business.
4. What Is the Zoning for the Area?
Before you even begin looking at buildings, you need to ensure the area has the right zoning for your type of business. Some areas have strict guidelines that must be followed when setting up a business. Make sure you are familiar with the zoning regulations in your area and consult with an attorney if you have any questions.
If the area you are interested in does not have the right zoning for your type of business, you may need to consider looking elsewhere. It is not worth risking your business by setting up shop in an area that does not allow you to operate legally.
5. Ensure That the Plumbing and Electrical Are Up to Code
One of the most important aspects of choosing a building for your business is ensuring that the plumbing and electrical are up to code. This is especially important if you plan on running a manufacturing business. Faulty wiring or plumbing can lead to serious safety hazards and expensive repairs. In 2018, the plumbing industry earned more than $107 billion in revenue. This was driven partly by an increase in the number of businesses that require plumbing services, such as restaurants and hospitals. So, be sure to only consider buildings that have a plumbing and electrical system that is up to date.
It is important to choose the right building for your business as an entrepreneur. By considering the five factors listed above, you can make an informed decision that will set your business up for success.