Starting a new business is a thrilling time in anyone’s life. But, it also comes with the inevitable need to make a number of very important choices. Which can, unfortunately, be quite difficult decisions to make. Especially if you lack experience when it comes to making such business decisions. This is never truer than when it comes to the geographical location of your new startup base.
For that reason, here are the most important considerations you will need to make in order to properly establish your new startup in the right city.
Consider Demographics
A city’s demographics will have quite a large impact when it comes to choosing for your business. Especially as, from these figures, you may be able to determine whether or not you will have an appropriately sized customer base or not. You may find certain cities to be much richer when it comes to your business sector when compared to others.
For a fee, you will be able to find out key pieces of information of the ebb and flow of a particular area (sometimes you can get this accessed for you by corporate solicitors). From general data about who they are as a person to lifestyle choices, these pieces of information can be vital to help you make a solid decision when it comes to your new startup base.
If your business requires a certain type of employee, then it is also important you consider the demographics of the city you choose. A tech company in a largely rural area, for example, will find it difficult to source the right kind of workers in all likelihood. Which is why such companies tend to spring up in larger cities – such as London or Manchester – thanks to the wealth and diversity of workers in the area. The exact nature of your business will impact this part of your decision.
Cost of Living
The cost of living is one of the biggest factors you will consider when it comes to any city you are contemplating spending a large amount of time in. Whether you are basing a business there or moving for personal reasons. So, it goes to stand that this will play a large part in your deliberations.
Remember, the cost of living isn’t only important for your employees or yourself to live in the city. It can also impact the day to day running costs of your business. An area with a high cost of living with inevitably is a much more expensive place to base a business (no matter the industry).
Traditional Shipping Needs a Port
If your new startup is involved in the shipping of some kind, then you should factor in the benefits of locating yourself as close to a port as possible. Consider the fact that you will cut out a number of costs the closer to a port you base your business and its warehousing. The closer you are, the less transport you will have to pay for from the port to your warehouse and vice versa.
Niche Business? Seek Like for Like
If you are a niche business with a niche audience, then it may be worthwhile considering a base that is surrounded by your competitors. No, really.
This is an obvious example, but it still stands. Say your business was a shop that sold nothing but jet in Whitby. There are lots and lots of Whitby jet shops in the town, but jewellers dedicated to jet only are rare outside of this small town. The demand for this niche exists almost solely in this town as tourists expect to find this product there. Demand wanes outside of Whitby and therefore so does supply.
The other good thing about seeking out a niche business ‘hub’ is the support you will gain. Though you may be the competition, the power of community can be quite strong in a niche industry and you may be able to grow some great support as a result. Don’t underestimate the power of community.
Concluding Thoughts
At the end of the day, where to base your business also becomes a personal decision. How a city fits into your life, not just the considerations of your business is also an important factor to take into account. Your business is an extension of you, so don’t forget yourself in this decision-making process.
The overall success of your new startup isn’t wholly dependent on location; but it certainly factors into the equation. So, take your time and don’t rush this decision. But remember that it isn’t necessarily the end of the world to choose ‘wrong’ for your first startup!
