Small Business Location

Small Business Location. How do you choose the best retail location for your business? Here are the most important factors you should consider.


Which are your complementary businesses? And which businesses do you rely on for supplies? Are they conveniently located? Transport costs can translate into significantly high business expense over the long run, so it is best to minimize these costs as far as possible right from the beginning.

Traffic patterns

Spend a few days observing traffic patterns at your desired retail location. Record the flow of both human and car traffic in the mornings, afternoons and evenings. To obtain an even more complete picture, speak to businesses located in the vicinity and ask where their customers usually come from.

Note the sources of traffic: Is public transport readily available nearby? Where are the nearest freeways? Are there one-way streets?

Parking space

While you may have found the most highly trafficked retail location in town, is it impossible to find parking space? Depending on your type of business, convenient parking can be essential.

Anchor stores

Look out for anchor stores in the vicinity. These are the established stores that draw a steady stream of traffic. By establishing a complementary business offering products unavailable at the anchor stores, you will be able to make money off the existing high traffic flow.

Importance of Business Location


Different states have different taxes; the southern states have been especially popular with new businesses because of the low taxes. However, do realize what you give up in exchange for low taxes: market demand. States with the highest taxes also tend to have the largest, most thriving markets. Since taxes are typically levied on sales, it may make more sense to locate in a state with a stronger demand; your profits may be squeezed but you can make up for that with high sales volume.

Of course, an important third factor is the level of competition. A larger market may in turn mean higher competition, so you would need to investigate your competition in each state carefully.

Final Caveat: Small Business Location

When choosing a retail location, watch out for supposed ‘bargains’. Location is essential to the success of retail businesses; be willing to pay more for prime locations – your business will probably grow much more quickly.

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