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You may have heard of the old adage “location, location, location,” apparently the most important factor when establishing a business. However, this may no longer be true with a lot of businesses being run remotely, with location having no influence on business success. But if business location is really important, there are some factors to consider.
Firstly, consider what type of location is important for your business; what about the location will increase customer volume for your business? Do your customers walk in or pass by or would they drive to you? If so, is access easy and is there available parking? These are important factors to consider especially when setting up in a free zone.
Jumeirah Lakes Towers (JLT) is a fantastic location but recently has had serious trouble with roadworks and access. Similarly, Dubai Media City is an ideal location unless your customers need to find parking. Will you benefit from cross-promotion? If so, consider what other types of businesses are located near your chosen location.
Secondly, think carefully about how much rent you can afford. You will have projected how much can be allocated towards rent in your business plan so stick to it. Speak to estate agents and brokers for a reliable estimate of how much rent you can be expected to pay in specific areas.
Finally, be sure to consider if your proposed location is appropriate for what you plan to do both now and in the future. The majority of rental agreements in the UAE will be for a minimum of two years; the longer you sign for, the better your rate. Make sure you consider how your needs will change over the years. Is there enough space for your current number of staff as well as the number you wish to grow to? Will you need better access for clients, or for stock as your business continues to grow?
There is no perfect location as what makes it perfect will vary from business to business; just make sure to take your time and do you research. With the right location at the right price, there’s little to stop your business from going from strength to strength.
•When setting up business, decide first if location is important
•Consider how much you can realistically shell out for rent, etc. to get that ideal business location
•Plan for future growth including number of staff, market reach
Source: Nicholas Baker, Special to Properties
The writer is a freelancer