You’re looking for the right location for your business. Or you’re getting ready to move in. Or you’ve been there for a while and the costs are starting to add up. Here’s a list of things related to your business location that can drain your cash flow, and how to get back on track.

You’re looking for the right location for your business. Or you’re getting ready to move in. Or you’ve been there for a while and the costs are starting to add up. Here’s a list of things related to your business location that can drain your cash flow, and how to get back on track.

 

Here are 6 things to consider when selecting your business location

Your business’ physical  location can affect your rent, utilities, and insurance. Your business’ proximity to a creek or fault line can mean paying extra for disaster insurance. If your store’s floor-to-ceiling front windows face direct sunlight during the summer, you will need to pay more for air conditioning. Commercial property values can change dramatically depending on what neighborhood you set up shop.

Is street traffic or easy parking a necessity to gain customers? If you run a staffing agency or an HVAC installation service, paying expensive rent for a busy, pedestrian-oriented street might not be the best use of your money. Likewise, if you’re a small fashion boutique, it might be worth the cost to find somewhere better for your foot traffic than a suburban shopping center where people just want to go to the grocery store or gas station.

If you are located in a business park or shopping center, keep Common Area Maintenance (CAM) costs in mind. You could also be pressured into signing unsavory Tenant Improvement (TI) packages that pass on expensive maintenance, renovation, and damage costs onto you. Always check with your landlord or real estate agent before you sign for your new location.

Your business address can affect the minimum wage you have to pay employees and other localized employment rules. Taxes, minimum wages, and more can vary depending on in which city or county your business address is located.

Local zoning ordinances and historical designations can add costs to your start-up or renovation costs. Some neighborhoods have expensive permits and strict restrictions on what type of businesses can operate and where. You might also have restrictions on what your business can look like (or have to pay for regular restoration efforts) for historically designated neighborhoods and buildings.

Your could qualify for federal incentives if you are located in a Historically Underutilized Business Zone (HUBZone). The government prioritizes awarding contracts to businesses that operate in a HUBZone. If your industry fits and you have some flexibility in choosing where to locate your primary office, you could have preferential access to government contracts.

 

For information about Opportunity Fund’s small business loans, please contact us at 866-299-8173 or loans@opportunityfund.org.  For questions about your existing loan or other customer service questions, please contact us at 866-299-8173 or sbhelp@opportunityfund.org.

Loans are subject to credit review. Additional documentation may be required for credit approval. We are an Equal Opportunity Lender. Loans will be made or arranged pursuant to California Department of Corporations Finance Lenders License #6050609.


Opportunity Fund is tackling economic inequality so that hard work and perseverance means a shot at getting ahead, not just struggling to get by. Our programs are supported by a community of donors and investors whose contributions help to fund small businesses, support college students, and build stronger families and vibrant neighborhoods. Since 1994, the team has deployed $700 million and helped thousands of families earn, save and invest in their own futures. Opportunity Fund has earned a 4-star rating from Charity Navigator, America’s largest independent charity evaluator, for our commitment to accountability and transparency.

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