I probably don't need to tell you this, but each off line business model is different.  Your customer base is different, how you reach those customers is  different and the needs for space, financing and skilled employees is different.  That being said, you need to become the expert on your particular business model.  What I can tell you is that there are characteristics of every business model that are common.  These are the characteristics that we'll address here as well as touch on a couple of common business models within this space.



The first thing that every business needs to consider is whether you have a viable business plan.  If you haven't gone through the process yet of creating a business plan, book mark this page, go to create a business plan, and come back when you've completed that step. 

A compressive business plan will help determine what your cost constraints are and will help keep you focused on realistic goals.  Choosing a legal business structure and of course choosing a name for your business are important decisions also, but they can wait until you're closer to actually "opening the doors".

Regulatory Requirements

I'm assuming at this point that you've already decided on the type of business that you want to own.  If you haven't then you may be getting a little ahead of yourself.  But read on, perhaps an idea or two will emerge from reading this.  Regardless of whether your business will be a retail establishment, a wholesale parts warehouse or a dental office you need to have a clear understanding of laws that regulate business in general in your locale as well as any laws that may be particular to the type of business you plan to own.  Make sure that you're aware of any licenses that may be necessary, their requirements and the cost.  Being fined or closed down in your first week of business isn't going to help the bottom line, much less instill trust in your customers.  

Business.gov has a great tool that is still in Beta that currently has about a dozen business types and allows you to search by state for any licenses and permits required for your business.  If your business type isn't currently listed on Business.gov, most states provide  a business section on their web sites and  you'll need to do your research there.  Once you've determined what your licensing and permit requirements are, make sure you add their costs to your business plan.

MyCorporation.com also provides a business licensing service that assures that you've me all of the licensing requirements for you state and municipality. They will provide you with all of the necessary license, permit, and tax registration forms for your business type.  Go to MyCorporation.com and register to receive all of the forms required for your business and avoid potentially costly mistakes that could delay the start of your business.

Location, Location, Location

You've heard this phrase before.  And it can make a major difference in the success or failure of your business.  If this is going to be a home based business then you can skip to the next section, if not, read on.  If your business relies primarily on walk-in traffic you obviously want to locate your business in a high traffic area.  If your business is a wholesale warehouse than you need to make sure that it is easily accessible to  your customers and suppliers.  If however you ship or deliver most of your product sales, than location becomes less important but is still a consideration, especially if you are footing the bill for delivery.  Much of your decision on location can be reduced to three factors, accessibility, availability and affordability.  

Who are your prospective customers?  Where do they look for products or services?  If you have a high-end clientèle than you want to make sure your business location is visible to them.  You wouldn't put an art dealership in the warehouse district unless this is where the "chic" shoppers buy.  Likewise locating a warehouse in a downtown area may be convenient but it's likely to be cost prohibitive.  

If there is low availability for the type of space that you need then that may mean that prices will be high and your perfect location may not fit your budget.  Before scouting locations have a good idea of how much your monthly budget will allow and stick to that number.  Starting out with a lease that you can't afford will have an adverse effect on other needs of your business including your qualifications for loans. 

In some cases you may not have any choice in where the business is located.  Perhaps you're buying an established business.  If this is the case make sure that you scout the neighborhood and location well before making the purchase.  Make sure that it's easily accessible to the clientèle that you intend to sale to.  And by all means, find out why the current owner is selling the business in the first place and have your accountant research their books.  Also look for any new or proposed zoning changes that may affect your continuing business at that location.

Retail Space

When scouting retail space one of your main consideration will be your potential customer base.  Where do they shop?  Can you attract enough shoppers?  Are there other businesses in the area that attract your demographic?   Highly desirable locations are obviously those that are closest to your demographic.  If you intend to sale t-shirts then a location near a high school or university may be the perfect location.   However if your specialty is business suits the same location may be unacceptable.  The type of structure you choose also plays an important part in the potential success of your business.  There are a lot of choices including shopping malls, strip malls, free standing buildings, free standing buildings with storefront facilities etc.  Each has advantages and disadvantages and this is another area to keep in mind when making your selection.  If your potential clientèle are teenagers than a mall site may be the best choice as malls tend to attract a younger demographic.  However if the particular mall that you're scouting doesn't have other shops that would appeal to teenagers then it might not be a good choice. 

Office Space

There are several more options available for office space than retail space.  Since most offices don't rely on walk-in traffic to find customers the location is far more flexible.  This doesn't mean that location isn't important though.  If you do rely on customers visiting your office then it still needs to be conveniently located.  If you intend to hire employees for your office and out of the way location may severely limit your access to available talent.  Your location needs to be easily accessible by car as well as have public transportation nearby.

Executive suites or shared office spaces can be a great way to save on expenses.  In this scenario you're not only leasing the space you require for your employees but you are also paying for access to shared facilities like reception and secretarial services, fax and copy facilities and meeting an conference rooms.  Your costs are reduced considerably by not having to supply these services yourself.  it also helps you to project a more professional image to clients and customers that visit your office.

Industrial Space

With any industrial space your choices may be limited to zoning requirements.  You'll also need to insure that the space meets your requirements or can be built out to fit your needs.  Make sure that you have adequate square footage as well as ceiling height for warehouses and ample power for manufacturing facilities.  If you need to ship or receive heavy equipment or pallets make sure that thee is a functioning loading dock of the appropriate height.  Before signing a lease make sure that the space meets zoning requirements and determine who will be responsible for the expense of meeting code if it doesn't.

Industrial parks are usually a good fit for this type of facility.  They're usually built with great accessibility to highways and truck routes, zoning usually isn't an issue and it's easier to find space that doesn't need much of a retrofit if any.

Home Based Businesses

Many businesses can be run from home.  If you don't have requirements for large storage areas or your business is primarily via telephone or Internet (see online business section) or your business is conducted primarily at your customers site, a home based business may be ideal for you.  There are tax advantages to dedicating a portion of your home for business, but please speak to a tax adviser on the requirements for this deduction, it can be tricky.  Make sure that your home environment is conducive to conducting business.  If there are a number of distractions that will reduce your performance then renting a small office may be a better idea.

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Copyright © Robert Matthews http://bizTAMER.com

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