More and more of the world’s enterprises are conducting themselves exclusively online. With that said, millions more remain brick and mortar bound. Choosing where in the world to place your business is contingent on several factors. This post breaks them down, ranging from which country to which building:
What Country?
Globalization has generated a revolution in business practices in that entrepreneurs can pick from hundreds of countries to base their startup. This allows for relatively small businesses to get a foothold on several continents. But which countries are optimum? Stability is, of course, the number one factor when making the decision. Countries with flimsy governments and economies are not worth the risk, no matter how great the advantages are for being based there (see below.)
What Province or State?
Laws and regulations relating to business vary greatly from state to state, province to province. The array of Texas energy options made available thanks to deregulation, for example, is not going to exist across the border in Oklahoma where utility companies operate monolithically. Taxes are another factor to consider before deciding where to start your business. Certain states such as Florida, Texas, and Wyoming are known to have low corporate tax rates while states like Ohio and California are known for the opposite. Keep these factors in mind before choosing where to settle down and start your business.
What City?
Certain cities and metropolitan regions are known for certain types of business. For example, Hong Kong is known for its serviced offices, while Mumbai is considered the capital of call centers worldwide. This may make you want to establish your business in a city associated with accommodating the industry, but that decision comes with both pros and cons. While city government, real estate, and workforce supply make it easier, the crowded environment dilutes these perks. Perhaps a better strategy is settling on a “second city” where the industry is familiar, but not yet over saturating the region.
What Part of Town?
How much a business will spend toward a brick and mortar location depends mostly on what part of town they wish to establish themselves. Simply put, posher parts of a city will have higher rents while the less affluent areas will have the cheapest rates. The trade off is of course access to customers and clientele, as well as the security of the business and its staff if the neighborhood is particularly crime-ridden. If a business is mostly engaged in manufacturing or online work, it may be worth it to set up shop on an economically depressed side of town to take advantage of bargain pricing.
Which Building or Location?
Leasing space is something far too many businesses neglect to do properly. Signing yourself to specific retail or office space because of the view or the price without doing your homework can be devastating later down the road. The Small Business Administration recommends consulting a real estate attorney to make sure the exclusivity clause and co-tenancy agreement are iron clad. This way a business is protected from proximity competition and insured against the losses posed by unrelated neighboring or nearby enterprises closing their doors.
Deciding where to begin your business is a complex decision in today’s globalized world. Gone are the days when people never wandered farther than 20 miles away from home their whole lives; the planet is increasingly interconnected and startups need to incorporate this into their plans to stay competitive. By taking advantage of ideal locations and avoiding less than advantageous ones, entrepreneurs can expect to take on their respective market with expertise and efficiency.