As we discussed in a previous post, there are many things that must be considered when you open a new business. Arguably one of the largest considerations that one must make is where you will decide to set up shop and plant your business’ new roots. Here at the Commercial Finance Group, we help small and medium-sized businesses find success through financing programs like asset-based loans and small business loans. We get it, starting a business is no easy feat, so join us as we discuss opening your small to medium sized business today.
In this two-part blog discussion, we are going to talk about why the location of your new business is important, how to find the perfect location and some ways to finance your new business endeavor.
Why Does Location Matter?
“Location. Location. Location.” It’s something that we have all heard before, but may have failed to realize the true meaning. While the old-timey saying may not have been in reference to the importance of a business’ location, it is still as equally true. Location can make or break a business, because if a business is in an undesirable location, it may never see any customers or the light-of-day. So besides the obvious, what makes a business’ location so important?
Zoning Codes
An important aspect of choosing a location for your business is the zoning codes in the Los Angeles area. While you can probably place your finger on a map and pick a general location where you would like to open your business, it is important to make sure that you can legally do so. Zoning codes are a method of control in city development, as key decision makers in the local government decide where residential, recreational, industrial, and commercial ventures may establish themselves. Because of this, you may not be able to legally open a business where you want.
A solution to navigating zoning codes is doing your research, because while you might not be able to open up shop in the part of town that you initially wanted, you can still pick the best possible location within the proper zoning districts allowed by your local government.
Have you found the perfect property, but you don’t have the working capital to move forward? Contact us at the Commercial Finance Group and ask us about our commercial loans, small business loans, and our asset-based lending options her in Los Angeles.
Consumer Convenience
Once you have learned to navigate the zoning codes in the greater Los Angeles area, it is important to pick a location within the defined zones that make the most sense for not only yourself, but your customers as well. We currently live in an age of consumerism where people don’t like and choose not to, go far out of their way to enlist a particular service or buy a product. Because of this, it is important to choose a location that is convenient for your targeted consumers, such as on a busy thoroughfare between a large working population and their homes so that you are an easily accessible stop on their routine routes to and from work.
Making it easier for your customer to access your business is a great way to increase your overall profits, so picking an optimal location is a priceless asset to starting your new business. While picking the right location is priceless, the buildings bill is not, and if you need help with that initial cost, contact us at the Commercial Finance Group to discuss loan and lending programs.
Local Regulations & Taxes
Researching local regulations and tax information is one of the least exciting, but most important parts of opening a new business. While zoning codes may create distinct areas where a certain business can or cannot operate, taxes and regulations may vary within different industrial and commercial zones. In order to set the groundwork for a successful business, it is important to pick a location in a zone where the taxes are not too high, or in a zone where the regulations won’t restrict your day-to-day operations.
Operating Expenses
Much like regulations and taxes, it is important to thoroughly research the operating costs of each location that you are interested in to start your new business. Operating expenses can drastically influence the overall cost of operation, as some storefronts are much more expensive to occupy than others. The cost of operation creates an interesting paradox among small businesses, as an expensive storefront may bring in more sales, but overall revenue might not be as high as if you were to occupy a cheaper storefront and receive fewer sales.
Operating expenses can vary greatly, and it is extremely important to have a solid business plan before settling on a property so that you know the expenses will not outweigh the revenue. Sometimes all it takes is a financial jumpstart, or working capital from an asset-based loan, small business loan, commercial loan, or any other lending and loan programs. If you are in need of some extra working capital, contact us at the Commercial Finance Group and apply for asset-based lending in Los Angeles.
The Commercial Finance Group Can Help
While we can’t help you find the perfect location for your new business, we can help you get your name on the deed once you do. With a small business loan from us at the Commercial Finance Group, you may be better able to secure a lease in a desirable business location, and once you begin day-to-day operations, we can help you with a commercial loan, or an asset-based lending program.
Contact us today for more information about out various beneficial programs like asset-based lending in Los Angeles. Also, fill out an online application so that we may be able to better help you achieve your small to medium sized business dreams.
Stay tuned for part two of our discussion where we will discuss various factors that you should consider when looking for the best location for your new business.
