Picking the correct location for your industry

What do I need to consider? 

It is important to consider the following when deciding which location is appropriate for your business. For example, do the location’s demographics align with your target audience? Are you seeking a large plot for a specific facility or a smaller site for an office building? Where are your competitors located? Answering questions like these can help clarify your requirements. We have put together a guide that helps answer any queries on selecting the correct location for your industry. 

Here are some considerations to help you choose the best location for your business needs:

1. Demographics: Ensure the local population matches your target audience. 
2. Size: Determine the appropriate plot size for your business operations. 
3. Competition: Consider the proximity of competitors. 
4. Accessibility: Evaluate the location’s accessibility for employees and customers. 
5. Costs: Assess the cost implications of the location, including rent and taxes. 

By considering these factors, you can better identify a location that supports your business goals.

Here at Virtual Headquarters, we have over 130 premium locations to choose from to give your business the boost it needs. Take a look at all of our locations.

Your Staff

A key first step in selecting the right location for you will depend on your staffing requirements. Your workforce is an integral part of your business, so it’s important to ensure you hire the right staff for the right location. Although you might plan to hire remotely, it’s important to consider what your business needs.

Selecting the right staff for your business is extremely important as it provides your staff with a place for collaboration, motivation, and creativity, giving them a sense of teamwork and purpose and ultimately allowing them to be as productive as possible. Location has always played a vital part in attracting and retaining the best employees, especially those who place a high value on work/life balance.

If you want to attract the best quality staff for your business, getting your location right involves more than just being in the right town or city. In an era when businesses must work hard to convince reluctant remote workers to return to the office, factors such as local amenities, public transport links, and parking all contribute to making your workplace more attractive.

Some job roles can be achieved remotely, but having your staff based in your operational location can be a real driver to the positive success of the business. Searching for locations with staff that align with your ideal employee is important.

Depending on what your business is, it can be beneficial to select your location based on universities that rank highly in the respective topic. For example, if your business is software development, video game development, mobile app development, or other computer sciences, the universities of Cambridge, Oxford, and Imperial College London currently rank in the top three places for computer science in 2025.

Other universities include Bath, Durham and Birmingham. Not only would you be able to employ students with specific skills for the role, but there will also be a high demand for your business based on the University students themselves, making it a potential win-win for employees and potential customers.

Market and Demographics

The UK is home to a vast number of startups with 800,000 new incorporations registered on 2020-2021, the biggest number in UK history for one year. However, despite this high ranking, the UK falls behind in the number of companies that grow into medium-sized enterprises, not even making it into the global top 10. While starting a successful business is a challenging endeavour, there are strategies to improve your chances of success, such as launching your enterprise in an ideal location for your trade.

When choosing a business location, it’s crucial to understand your ideal customers. Consider your target market’s demographics, including age, gender, income, occupation, spending habits, and other relevant characteristics.

It’s important to situate your business in a community that will support your products or services. In many cases, your business location must also meet the needs of your suppliers and distributors.

If you wish to start your company in a particular trade, there are additional aspects you can analyse to ensure your business’s success. Consider factors such as the percentage of businesses in that industry, the share of jobs in that sector, and the industry’s turnover in that region.

Examples of best regions to set-up a new business in include:

Transport & Storage

1. Northern Ireland
2. Wales
3. South West

Information & Communications

1. Northern Ireland
2. North East
3. Wales

Real Estate

1. London
2. South East
3. East Anglia

Construction

1. North East
2. Scotland
3. Northern Ireland

Accessibility

When choosing a business location, accessibility should be a top priority. Consider everyone who will enter your business, including customers, clients, suppliers, distributors, and employees.

• Transportation: Determine if the proposed site offers parking space or access to public transportation for employees. 
• Local Area: Take note of nearby conveniences such as restaurants, banks, grocery stores, and daycares. 
• Deliveries: Ensure that deliveries can reach your business safely and efficiently. By prioritising accessibility, you can enhance the experience for everyone involved with your business.

Competition

Proximity to competing businesses can either hinder your success or benefit you. Before choosing your business location, identify which competitors might impede your progress and which might encourage a healthy partnership.

Understanding the competition helps you differentiate your business and develop a unique selling proposition. By assessing what competitors offer, you can identify areas where you can excel or provide additional value to customers. Differentiating yourself from competitors in terms of quality, pricing, customer service, convenience, or other factors can attract customers and give you a competitive advantage.

Understanding the competition helps you gauge your potential market share and customer loyalty. If competitors have a strong presence and customer base in a particular location, it might require additional efforts to attract and retain customers. By analysing your competitors, you can develop strategies to stand out and effectively capture market share.

Costs

Costs must be carefully considered before moving to a specific location for your business. Carefully consider utility expenses, required permits, geographical factors that may affect infrastructural costs, and any other regional conditions or obligations that might impact your development budget.

Before you spend time exploring business locations that may be out of your financial reach, it’s prudent to establish a budget. Costs for comparable premises can vary significantly across different areas. Additionally, the type of office you’re seeking can greatly impact the price, so be sure to consider that in your budget planning. For instance, in a coworking space, you’ll typically pay a fixed fee for access to the space, usually on a monthly basis, with no setup fees or utility bills. However, you may incur additional charges for amenities like meeting rooms, printing services, or parking. 

On the other hand, if you opt for a serviced or managed office, you’ll typically pay an all-inclusive monthly fee covering rent, business rates, cleaning, and maintenance costs. Nonetheless, you’ll likely need to provide a deposit equal to two or three months’ worth of rent. 

Whether you’re new to freelancing or just looking to shake up your annual income, we have the ultimate tool to estimate the amount you need to charge per hour/day in order to earn your dream salary. We’ve considered all the costs that your rate needs to cover – right down to your sick days! Try our freelance rate calculator today.

Conclusion

No matter which option you choose, there will likely be advantages and disadvantages to your business location. An office in a rural setting might be relaxing but could be difficult for staff or suppliers to access. Conversely, being in the middle of the city could be very convenient but might come with high property costs and business rates. Additionally, parking can be costly and inconvenient in city or town centres. 

Location is such an important component for businesses, and ensuring you pick the right one is essential. 

Virtual HQ offers an exceptional Virtual Address for Business service, perfect for those seeking a professional image without the overheads of a physical location. Our Virtual Office Address Packages go beyond just providing a Business Address, we serve as your comprehensive solution for virtual operations. Find the right location for your business.

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