Choosing the Right Location for your Business

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Setting up your own business is not an easy feat. For first-time business owners, this can be especially daunting because there are a lot of factors to consider – from the product or service you want to sell, the price, production costs, to resources needed and the location. As a new start-up owner, you might already have your business goals set and the vision of where you want your business to be in five or ten years’ time. Or perhaps you already operate an existing business but would like to expand to another location. And maybe the question you have in your head now is where to set up shop. Choosing the right location would largely depend on the type of business you’re in. If you’re in retail, then look for a place where it is frequented by a lot of people, preferably within your target market. This can be within a mall, hotel or transportation hubs such as the airport. If you’re offering a service such as spa treatments or managing a restaurant, your ideal location would be within business and leisure districts. But what if you’re offering an outsourcing service and would like to take advantage of the global market? Where do you set up shop? Top Outsourcing Destinations Currently, the two leading countries considered as favourite destinations for offshore outsourcing are India and the Philippines. Both countries have an established business processing and outsourcing (BPO) sector and will continue to expand in the coming years as predicted by market analysts. Thus, setting up or expanding your outsourcing business in either of these two locations is ideal. These two countries each have a competitive edge against the other. While India strongly holds the top position for IT outsourcing services, the Philippines on the other hand, excels in voice BPO. In recent years, the Philippines has gained further advantage in the outsourcing industry and is attracting more and more investors. This is because of the country’s strong workforce with excellent communication skills and close affinity to American culture – something that India is lacking. In addition, the Philippines also have first-rate BPO training facilities and strong support from the government. International organizations such as Flat Planet have set up business in the Philippines because of these reasons. For Flat Planet, it was more than that. The company sees the country’s roster of highly skilled virtual talents and believes that these talents should have be given the opportunity to compete in the global market. It also prides itself of focusing on providing quality virtual staffing services than cheap labour. When setting up shop in a competitive market like the Philippines, you need to consider several factors first. Who is your target market? What are their spending habits? Would you be able to sustain the business in that location in the long run? Before you set your sights on a specific location, here is a list of things you need to know: • Target demographics – number of potential customers willing to outsource and get your service • Office space – lease terms, facilities, proximity to central business district • Accessibility – foot traffic in the area, transportation going to your location, public transport • Cost – infrastructure needed, overhead, resources, local taxes, etc. • Local government law – zoning regulations, business permits, minimum wage requirements, etc. • Competition – number of competitors in the area • Safety – working conditions, local crime rate By taking these into consideration, you will be able to gauge which location is ideal for your business. Doing market research and competitive analysis would greatly help you in determining the right location. You can also ask your friends or colleagues who have had similar experience and get recommendations from them. Remember to weigh in the pros and cons first of each factor given above before you decide on your target location.