Every business owner must determine where to locate the business. In the past, industrial companies required large plants, heavy capital, and factories. Location, location, and location still proves the success of storefront companies in spite of today’s internet stores and shopping carts.
Today, however, business owners may select from a variety of location options. We’ll examine just a few in today’s post.
Base Your Business at Home
You may choose to run your business from your home for the first several years. Several types of businesses do not require a location for clients to visit or a facility to manufacture products. Basing your business at home reduces overhead, but may create other challenges. For example, young families may distract you from business tasks. Isolation also affects business owners who work alone at home. Creativity and synergy decrease from the lack of people in the facility.
Shared Suites/Business Incubators
Many communities now offer shared suites. The shared suites are owned and possibly managed by one company. Different business owners lease an office in the shared suite. Other business owners also lease offices in the suite. The management company provides shared clerical staff, equipment, conference or training rooms to each business owner. Some suites even let business owners lease the offices for just hours a week instead of full-time.
Manufacturing or Office Facilities
Many office and manufacturing companies look forward to moving into big beautiful facilities as soon as possible. Some jump prematurely into expensive facilities they don’t need, nor afford. I do not dispute that some businesses require stores, factories, or offices. If so, they should identify the best possible facility with the right location and the right price. However, if you absolutely do not require a big facility, wait until you need to invest in the big office or plant. Always use a good real estate agent or property management company to consult with you on major property decisions.
Offshoring or Outsourcing
Offshoring or outsourcing provides another option for business owners. Manufacturing companies may find low personnel costs in Asia or locations. Yet, sometimes tariffs, patent and copyright differences, and cultural challenges eliminate possible cost savings. Nevertheless, contracting with other companies to provide call center, customer support, manufacturing, production, and other services. You can find additional information about each type of company through their respective associations.
Other options for physical facilities exist for business owners. I suggest you consult with a facilities consultant from the Service Corps of Retired Executives (SCORE), Small Business Development Centers (SBDC), and real estate professionals. Explore well before you sign a contract.
No comments:
Post a Comment