Market Overview

David Kiger Shares Six Key Factors to Consider When Picking a Location for Your Startup

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Successful Angel Investor Explains Why Community and Competition
Matter When Choosing a Startup Location

Anyone who has bought a house or had other real estate dealings has
likely heard the familiar phrase "location, location, location." The
quality of the area where a residence sits is tied to the home's overall
value. The same can be true for a small business. Finding an ideal spot
to set up shop can lead to positive exposure to potential clients.

David
Kiger
, founder and executive chairman of the global logistics
company Worldwide Express and a major investor and strategic advisor for
a diverse portfolio of ventures including Alef
Mobitech
, Exos Transport Group and beGlammed,
shares six key factors to consider when choosing the right location for
your startup.

  1. Consider a move. "It may be instinctual for a prospective entrepreneur
    to assume his or her current home is a good place to start a business.
    Making a move to another city or state is a big personal shift, so
    adding a startup effort on top of that can be daunting," Kiger says.
    "However, it may be beneficial to do some research to figure out where
    the best place would actually be for your business. There is no
    shortage of reports that declare where business owners should flock to
    and where they will have the best chance to succeed."
  2. Access to funding. "A major move to either coast likely isn't feasible
    for the bulk of prospective entrepreneurs," Kiger explains. "Yet there
    are startups that could clearly benefit from shifting to more fertile
    ground like Silicon Valley. Surrounding yourself with potential
    investors is a great way to find someone that will support your
    vision."
  3. Community. "Beyond the macro issues of identifying the right city and
    state, small business owners also need to analyze how their business
    would fit in the community," Kiger shares. "By recognizing where their
    potential customers are, where they congregate, how they spend their
    money and how to reach them, they can refine the search. Economic and
    demographic factors play a significant role here."
  4. Foot traffic. "Most small businesses — depending on their products and
    market — will want to be visible enough to catch a potential client's
    eye. Granted, acquiring a prime section of a busy shopping area won't
    be cheap," Kiger says. "But a strong physical presence can go a long
    way in attracting foot traffic, just as a strong online and social
    media presence can attract web traffic."
  5. The details. "For an entrepreneur who has identified a major move is
    needed in order to launch a business, there is an abundance of details
    that may not be top of mind but should be investigated," Kiger
    explains. "Looking into factors like local government rules, taxes,
    parking availability and public transportation are important to look
    in to when choosing your business location."
  6. Competition. "In a perfect world, a small business might be so unique
    and so in-demand that it would earn the status of being 'the only game
    in town.' That's not terribly realistic, however, as competition —
    physical and online — is seemingly everywhere," Kiger says. "In
    determining a location, special attention must be paid to the other
    businesses that are already established. Well-known companies have the
    advantage of time, reputation and client base."

On the other hand, there are those who veer away from the "location,
location, location" theory in business. The rise of online commerce
introduced revolutionary shifts in the past several decades, so it's
important for business owners to also establish an effective web
strategy. Overall, both the physical location of a business and its
online presence are crucial when starting a business. It's up to
business owners to come up with effective strategies to handle both in
order to meet their end goals.

About David Kiger

David Kiger, founder and executive chairman of the global logistics
company Worldwide Express, is a major investor and strategic advisor for
a diverse portfolio of ventures including Alef
Mobitech
, Exos Transport Group and beGlammed.
Kiger offers advice to entrepreneurs through his blogs on leadership and
helping socially and economically disadvantaged businesses. Follow him
on Twitter: @DavidKiger

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