Searching for a proper location for your new business can be exhausting experience. There are so many constraints besides the budget such as proximity to the market, access to raw materials, transportation facilities, land area, etc. An ideal location can only foster success of the organization.
Acquiring land would require a large fund while leased property would be a feasible solution if the funds are meager. Land or property is always subject to be appreciated in the terms of money over a period of time. This makes purchase a lucrative proposition. But since the business is at its start stage leased property would be a better deal.
Step 1 – You have two alternatives either to buy or get a lease. Consider the pros and cons for each of these alternatives to decide on the most suitable one for your business.
Step 2 –Specify your trade area. Trade area is a broader concept that entails analogous firms, market region, availability of raw materials and other industries within a defined geographical area.
Step 3 – Lay out a blue print of floor area you wish to have in order to set up your business. The floor area would depend on the number of employees, number of production processes, kind of sector, size of the raw material etc. For eg, railways coach manufacturing industry spread to large stretch of land as it is a heavy industry.
Step 4 – Check if the terrain of the land is suitable for your particular business. Plain area is always preferred over rugged or marshy areas.
Step 5 – Ascertain that the area for your new business set up is well connected with rail and roadways system to facilitate easier transportation of goods and raw materials. Also check for amenities like water supply, power, availability of raw materials, labor supply etc.