Getting the right space for your business in an important choice. There’s a lot that goes into it, like location, total space available, building function, and more. In order to make this difficult choice easier for you, we have a set of guidelines for how to choose the right building in which house your business.
What Kind of Commercial Enterprise do you Have?
The most important question to ask is what kind of business do you (or will you in the future) run? A barbershop/hair stylist will have wildly different requirements than a storage facility.
The type of business you run will have a huge effect on:
- Location. A service business or shop will want to be in a town/city in a business area, with people living and working nearby. A factory or more industrial enterprise will want to be outside residential areas, and maybe outside city limits.
Further location considerations:
- When considering location think about whether customers will come to your place of business, or whether your business will go to them. If clients will be coming to your location, how many can you expect to be there on average?
- How much exposure does your business need?
- How is the business expected to grow? What are your growth plans?
- How many employees will be on location?
- Accessibility. Can people easily get to your location? Do people need to easily get to your location? Can clients/customers/employees get to from the parking location to other locations easily and quickly?
- Does the style of the building fit your branding? Do the ideas conveyed by the building’s appearance, function, and style match your brand and your message? If the building is primarily industrial, with only workers coming to do their jobs, then branding won’t matter as much as the head office where clients go to make deals will. However, if your building is a place that regularly sees clients, then building style is important in making a good impression of your business on them.
- Building function should be another key directive in choosing the right space. Obviously different businesses will have different requirements from the buildings they inhabit. Make sure you keep in mind what exactly the building needs to do to make your business run.
Know What You Want
Have an idea of what you want going into the selection process for your commercial space. The best way to do this is to make a list of what’s important to you. When making your list, it’s good to look at some of the questions we asked in the previous section. Also, you should write down what you would simply like your new building to have. What’s important to you might be tertiary or stylistic aspects of the space, but it all adds up to branding and message. For more help on figuring out what you want from your commercial building, check out our article about building entrances.
Think outside the box, and don’t forget to look at the bigger picture. Try listing your preferred size, structure, appearance, and utilities. The more that you can specifically state early on, the easier it will be to narrow down what you can do exactly with the resources available. Also, if you are working with designers/architects to build a building or renovate/add to an existing building, they can give you specific feedback about your ideas. You might find your ideas to be much more, or much less feasible than you anticipated.
Keep Costs in Mind
Costs are probably the main limiting factor when anyone is purchasing or building a new commercial space. Again, take a look at the bigger picture to figure out the total costs for the building.
Initial Purchase Costs
This will be the cost of either buying the building, or materials for construction and/or a down payment for your construction contractor.
Legal Fees and Permit Costs
Depending on the type of business you have, you might need to pay extra fees to start operations in the location you have selected. Things like factories and other industries will need to consider what kind of permits they require.
Even service-based enterprises, like restaurants have permit requirements, for example, licenses to sell alcohol. The legal costs may change according to where your business is set up as well.
Overhead and Operating Costs
Figure out the overhead costs for your business. Rent, utilities like heat and power, etc. Your overheads will vary from business to business, so be aware of what your specific operating costs will be. Shipping costs of goods to and from your enterprise should also be considered.
Location is one of the most important factors in determining which commercial space to buy, or how to build. Location affects the business is a big way, including some ways already mentioned. Here is a quick summary of why location is so important:
- It affects shipping costs to and from your business.
- It affects how much exposure your business gets.
- It is a major decider in how many clients will come in-person to your business.
- It determines how accessible your business is to clients and employees.
- It plays a big role in figuring the costs of operation — a business in a downtown area will have way higher rent than something based in a rural location.
- It determines what utilities are available to your business as well. For example, It’s easier to get semi trucks in and out of locations outside big cities.
- For some businesses, it might not be important. An online based business might not need a central location at all.
Think carefully when choosing your location, and ask for help from any architects or commercial contractors you may be working with.
Are you Looking for a Building?
If you are considering purchasing a space to do business, or building a new one, we can help. Reliable Commercial has over 35 years of construction experience working with commercial clients. We can help you purchase a space, build a new space, and/or renovate an existing space. Send us a message to ask for advice of any kind on getting the perfect new commercial building.