While choosing a business location isn’t exciting at first. It’s not glamorous. You’re not picking wall paint or designing a logo. But Strategic Location Planning is one of those unsexy decisions that can seriously affect how well your business performs. I’ve seen folks open in the wrong spot and close within a year, not because their product sucked, but because the foot traffic wasn’t there, or their rent quietly choked their profits.
If you’re expanding or starting fresh, this guide breaks down what really matters when scouting your next business location.
Know What Type of Location Actually Works for Your Business
I used to think, “A good location is just one that gets a lot of people walking by.” Nope. That’s just retail. Here’s what I’ve learned after working with small business owners across different industries:
- Home-Based: If you’re running a digital business, you might not need anything fancy. A spare room with good lighting and Wi-Fi might be enough. I ran a freelance gig from a studio apartment for two years—it was tight, but it worked.
- Retail Storefront: Yes, strip malls are still around, but think bigger—airports, flea markets, even seasonal pop-up kiosks. One guy I know sells handmade soaps at weekend farmers’ markets and makes more than mall kiosks ever brought him.
- Mobile Businesses: This model’s blown up in the last few years. Food trucks, mobile salons, repair vans—they’re everywhere. They’re also great for testing demand in different areas without committing to a long lease.
- Office Spaces: If your business involves client meetings or growing a team, commercial space is worth it. Just be wary of long leases and hidden costs—maintenance fees can sneak up fast.
- Industrial Spaces: These are must-haves for manufacturing, fulfillment, or logistics. They’re usually on the outskirts of town and not always glamorous, but they’re functional and often more affordable per square foot.
Reality Check: Zoning laws in the U.S. can be a nightmare. I know someone who signed a lease and then found out they legally couldn’t operate a dog kennel there. Always check with the city before you commit.
Be Honest About Your Budget (and the Costs You’re Probably Forgetting)
The base rent is just the start. In fact, I’d argue that it’s the least of your worries.
Consider:
- Property taxes (varies wildly between states—Texas vs. Oregon? Big difference.)
- Required renovations (that charming vintage shop might need a $20k HVAC update)
- Permit and inspection costs
- Minimum wage in your state (some cities have their own rules—hello, San Francisco)
- Security deposits and insurance premiums
One retailer I talked to last year budgeted $2,000/month in rent… but didn’t realize he’d owe another $900/month in triple-net fees (maintenance, insurance, taxes). He had to renegotiate the lease in month three. Awkward.
Match the Neighborhood to Your Brand
Your surroundings say a lot about your business before anyone even walks in.
If you’re opening an eco-conscious café, being next to a tire shop with oil spills outside isn’t ideal. On the flip side, if you sell discount cell phones, you might not want to be in a luxury shopping center either.
I once saw a luxury candle store open up in a strip mall next to a pawn shop and a vape lounge. Beautiful branding, gorgeous interior—but the wrong vibe. It lasted six months.
Moral of the story? Fit matters.
Stay Close to Your Vendors and Suppliers (It Saves Time and Money)
This is one of those logistical things that’s easy to overlook when you’re focused on paint colors and logos.
If you’re constantly getting deliveries—baked goods, wholesale merchandise, hardware parts—being far away from your suppliers is a pain. One local florist told me she moved her shop 20 minutes closer to her wholesaler and shaved off $300/month in delivery fees. Plus, she got fresher flowers.
That’s real.
Safety Isn’t Optional It’s Foundational
You can’t run a successful business if your employees don’t feel safe opening up in the morning or locking up at night. This applies double if you’ll be operating after dark or keeping inventory on-site.
Here are some basic but important questions:
- Is the area well-lit?
- What are the crime rates like?
- How quickly do emergency services respond?
A friend had his barbershop broken into twice in 18 months—no alarm, no cameras, and very little street lighting. It took a toll on staff morale and customer trust.
Look for Demand, Not Just Cheap Rent
This is one of those “duh” things that somehow still gets ignored.
Let’s say you’re opening a yoga studio. If there are already five others within a two-mile radius, you’re fighting an uphill battle—unless you’re bringing something radically different.
Instead, use tools like Google Trends, Yelp, or your local Small Business Development Center (SBDC) to get a feel for unmet demand.
Also, complementary businesses are your friend. A baby clothing store near a pediatrician’s office? Genius. A juice bar next to a gym? Even better.
Don’t Make Hiring Harder Than It Needs to Be
If your business depends on employees—retail clerks, assistants, baristas—you need a location they can easily get to.
That means:
- Access to public transportation
- Nearby affordable parking
- Decent food options (yes, people care)
I’ve seen businesses lose good staff just because the commute was too much. One boutique owner even started paying for Uber rides because she couldn’t find workers who lived nearby. Not sustainable long-term.
Parking Can Be a Deal-breaker
This seems small, but it matters more than people think—especially in car-heavy cities like Dallas, Atlanta, or Los Angeles.
Ask yourself:
- Is there free parking nearby?
- Is it street parking only (and is that enforced)?
- Do you have space for deliveries and employee vehicles?
If customers have to circle for 10 minutes or pay $8 to park, some of them won’t bother coming back—no matter how good your service is.
Think Long-Term, Not Just What’s “Available”
Finding the perfect business location isn’t about picking the first place that fits your budget. It’s about thinking through how the space supports your customers, employees, and operations.
Visit multiple times. Talk to neighboring business owners. Walk the block at night. Take notes. Sleep on it.
Because once the lease is signed, you’re in. And moving? That’s a hassle no one wants to deal with twice.