For any startup, location plays a very crucial role. It plays as a success factor for any start- up. Choosing a location requires in depth research on the background of the place and pre planning. Location typically decides the cost, Audience reach and Talent pool of the start-up. Now the million dollar question is how to analyze a location for a startup. Well, There are several factors that help you finalize a good location, some of them are:-
Size: While deciding a location for your startup, the first thing to keep in mind is the size of the space you want. There are a variety of options ranging from small booth type office to one large hall. There could be a difference in the way you want to handle the space, formally or informally with a bit of personal touch. Prior decision should be made on this matter.
Costs: You have to check the additional costs required on the location, ranging from electricity to the bills, security deposits and other thing. Make sure everything is under budget. Many times the place is for a lease which means one has to go through other legal procedures so a property check should be done beforehand.
Support: It is optional, but is beneficial in hard times. Startup with regional or national support are more stronger as compare to the startup with no support. This regional support helps in taxes or in the terms or resources. Friendly relation with the authorities bears sweet fruits and the legal processes can become really easy.
Taxes: They always play an important role as they can substantially cut the cost, increasing the profit of the company in return. States with high tax rates are sometimes hard to afford on the other hand States, which applies low tax rates are good options to start the company. These taxes vary from property tax to sales tax to state tax. All these taxes combine decides the affordability of the location.
Customer Base: The next thing is the type of customer. The target market plays a very important role as if you are a local based company, you need to have the maximum number of customers at your location, only then your startup will become successful. The economic condition of the people and the demand also matters. Always think from the point of view of a customer rather than a business entity.
Talent pool: It refers to the employees that are available at the location. Whenever you are searching for a location, always research on the talent pool available there. Availability of employees increases the success factor and decreases the cost as manpower is available locally. The nature of staff also matters as skilled and semi-skilled labor is a better choice for well established companies, but for a startup even fresher could be a great asset. Always give chance to the fresher as you are yourself a fresher in this field.
Competition: A Crowdy location with too many competitors is a bad choice as businesses which are already established will take away your customers too. Being a startup, it is very difficult to establish itself in a short span of time. A location with few competitors and the opportunity to grow is always a best choice. Competition is good, but the playing field should be equal otherwise the startups will be always in lose.
All these factors together make a good location for an office. If the startup works in a virtual space than many of these factors are void for it similarly if it's a bigger venture than the cost factor plays a meager role in it. It all depends on the start-up. It is not necessary that one place has everything in it, the nature of the startup decides which factor is more important.