How to Choose Your Business Location

Location, location, location - it’s not just a home buying show with Kirsty and Phil, it’s also a mantra for residential property buyers. And where you choose to base your business is just as important. Lots of factors have an impact on the success or failure of your company, and the location, location, location of your office is a big one.

The good news is that where you choose to base your business is completely up to you. By weighing up all the various pros and cons of a location, you can find an area that gives you the best possible chance of success - both now and in the future.

Why is Location Important for a Business

For businesses that operate entirely online location isn’t quite as important as it used to be.

That being said, if like the majority of businesses you still see the value in having an office to bring people together and to service your clients, then your location is critical. It will help you hire and retain the best talent and give you access to networks of connected clients and prospects.

In some respects, your choice of location can even define your business. As an example, within cities there are often clusters and hotspots for certain industries - but prime locations can come at a cost. On the other hand, if you choose a cheaper area, outside the recognised clusters or hotspots you may not reap those benefits but can use the cost savings in other ways.

6 Business Location Factors to Consider

When it comes to choosing a location for your business, there are a few factors to consider. Thinking about each carefully and reading our area guides will help you find the perfect spot.

1. Affordability

Before you waste time looking at business locations you can’t afford, it’s worth setting a budget. The cost of comparable premises in different areas can change dramatically. The type of office you’re looking for can also have a big impact on the price, so factor that into your budget, too.

For example, in a coworking space, you’ll pay a set fee for use of the space, usually per month, with no setup fees or utility bills. On the downside, you may have to pay extra to use meeting rooms and printers or park your car.

On the other hand, if you want a serviced or managed office, you’ll typically pay an all-inclusive monthly fee, with rent, business rates, cleaning and maintenance costs included in that price. However, you will have to pay a deposit that’s typically equal to two or three months of rent.

2. Accessibility

Although your budget is (typically) the most important business location factor, accessibility isn’t too far behind.

If you often meet with clients or customers in person, you should choose a location that’s easy to travel to. In many cities, that will mean a space near the main roads with easy parking options, while in a city like London, good public transport links are a must. You’ll also need a space with a reception area, waiting rooms and conference rooms, which will add to your costs and square footage requirements.

Don’t forget your employees, either. Even if you operate a hybrid working model, they’ll still have to travel to the office two or three times a week, so it’s worth making that commute as simple as you can. Walkability should rank highly on your list of priorities, as this is a key recruitment and retention tool.

3. Image and prestige

In some industries, image is everything. If you want to make your mark in a certain industry, choosing the right location can do a lot of the initial work for you. In London, think the Silicon Roundabout for tech firms, Harley Street for medical practitioners and the Square Mile for finance firms.

Having a prestigious address may help you attract high calibre clients and charge more for your services, but it will come at a cost. It might also be difficult to set your business apart from the crowd in an area that’s full of direct competition.

4. Demographics

The demographics of the local area is another factor to consider when choosing the location for your business.

Firstly, you have to think about who your customers are and where they’re going to come from. In the same way as you run a cafe, shop or restaurant, you will be reliant on footfall in the local area, so if the demographics of the commute catchment area aren’t quite right for your business, you could struggle to recruit the best talent.

The local area should have people with the skills you need at a price you can afford to pay. There should also be housing within an appropriate price range and amenities, such as schools, parks and cultural attractions, to attract and support them.

5. Proximity to other businesses and services

What businesses and services are in the local area? Nearby businesses could generate traffic that’s beneficial to you or become customers and suppliers. It’s also worth thinking about how the local companies can enhance your appeal as an employer. Eateries, bars and nurseries could all be attractive to employees and potential new hires.

6. Potential for growth

Moving office is not something you’ll want to do often. That’s why it’s worth looking at the business location factors we’ve discussed from the perspective of now, but also three, five and 10 years down the line.

Generally speaking, new hires require an additional 100 square feet per person, so if you’re planning on hiring in the future, factor that into your choice. Although, one of the key benefits of a flexible office solution is the abilty to regularly ‘right size’ your premises to meet the changing needs of your business.

Let Us Help You Find Your Perfect Office Location

Think carefully about these business location factors to give yourself the best chance of finding your perfect office location. Or… you could let us do the legwork for you!

At Knight Frank, we offer flexible office space across London. Just tell us what you’re looking for, let us arrange your viewings and we’ll negotiate on your behalf to get you the best deal. And better still, our service is completely free. Get in touch with our team today.

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