Start Your Own Business (39 page)

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Homebased.
This is probably the trendiest location for a business these days, and many entrepreneurs start at home and then move into commercial space as their business grows. Others start at home with no thought or intention of ever moving. You can run a homebased business from an office in a spare bedroom, the basement, the attic—even the kitchen table. On the plus side, you do not need to worry about negotiating leases, coming up with substantial deposits or commuting. On the downside, your room for physical growth is limited, and you may find accommodating employees or meetings with clients a challenge.

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Retail.
Retail space comes in a variety of shapes and sizes and may be located in free-standing buildings, enclosed malls, strip shopping centers, downtown shopping districts, or mixed-use facilities. You will also find retail space in airports and other transportation facilities, hotel lobbies, sports stadiums, and temporary or special-event venues.

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Mobile.
Whether you’re selling to the public or to other businesses, if you have a product or service that you take to your customers, your ideal “location” may be a car, van or truck.

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Commercial.
Commercial space includes even more options than retail. Commercial office buildings and business parks offer traditional office space geared to businesses that do not require a significant amount of pedestrian or automobile traffic for sales. You’ll find commercial office space in downtown business districts, business parks, and sometimes interspersed among suburban retail facilities. One office option to consider is an executive suite, where the landlord provides receptionist and secretarial services, faxing, photocopying, conference rooms and other support services as part of the package. Executive suites help you project the image of a professional operation at a more affordable cost and can be found in most commercial office areas. Some executive suites even rent their facilities by the hour to homebased businesses or out-of-towners who need temporary office space.

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Industrial.
If your business involves manufacturing or heavy distribution, you will need a plant or a warehouse facility. Light industrial parks typically attract smaller manufacturers in nonpolluting industries as well as companies that need showrooms in addition to manufacturing facilities. Heavy industrial areas tend to be older and poorly planned and usually offer rail and/or water port access. Though industrial parks are generally newer and often have better infrastructures, you may want to consider a free-standing commercial building that meets your needs and is adequately zoned.

 

WARNING

 

Be wary of incentives. Often incentives—such as free rent or tax breaks—may mask problems. There’s usually a good reason why any location offers incentives, and you need to be sure what it is before you sign up. You should be able to start a profitable business in that location without any incentives—and then let the incentives be a bonus.

BRING IT HOME

 

L
ooking for a way to launch your business with the minimum investment possible? Then consider setting up shop in a home office rather than in a commercial space.

 

 

Working from home makes a lot of sense when you’re launching a business and have limited startup funds. In addition to saving beaucoup bucks on operating expenses like rent and utilities, you’ll save on commuting costs and wardrobe expenses. You may even be able to take a tax deduction equal to the percentage of your home that’s used as Business Central.

 

But there are some disadvantages to working from home. Clients may not find your cozy home office very professional. You personally may find it difficult to concentrate on work when the sun is shining, or when the mall, golf course, or your children are chanting your name. Friends and family also may drop in unannounced because you’re at home. And the list of distractions goes on.

 

Minimize those distractions by establishing your office in a spare room or quiet corner that can be dedicated strictly to the business. Furnish it with office furniture (even if second-hand) and invest in a business computer. Install a separate business phone line with voice mail. Then make it very clear to well-meaning visitors that you maintain regular business hours and that the computer is off-limits to the kids. If necessary, arrange to meet clients offsite if your home office doesn’t reflect your image as a savvy professional.

 

Finally, before you hang out that shingle, make sure your municipality doesn’t have any zoning ordinances that prohibit homebased businesses. Some communities ban certain types of businesses, including those that will generate a lot of traffic or have employees working onsite. Make sure you know the rules before you hang out your shingle.