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Choosing a business Location in Ghana: Factors to Consider

A brick-and-mortar presence will almost always be needed, whether to house your staff, keep inventory in a secure warehouse, or give customers a physical representation of your brand, despite the rapid advancement of technology and digital business. When selecting a business location in Ghana, whether opening a new office or store or looking to expand into new areas, there are many factors that business owners should take into account.

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The following list reveals the crucial elements a company must consider when choosing a new site.

   Operation Method

Will your business be refined and formal? Or relaxed and informal? Your physical spot ought to fit your particular image and style. Do you want a conventional store for your retail operation, or would you prefer to try operating from a kiosk, booth, or mobile cart that you can move to different locations? Based on the operation method, your business’s location will greatly impact the costs you’ll have to pay. Kiosk’s do very well all over Ghana. However, conventional Western stores tend to do better in expat-dominated locations like Cantonments, Airport, and East Legon.

Also, these are some of the costs to watch out for the movement of raw resources, product shipping, inventory, parking, labor, electricity, and water. Ghana’s electricity is usually stable, however, there are periods when load shedding takes place. This will significantly impact your operational costs as a generator will be needed. Although electricity is more stable in expat-dominated areas, getting a generator is still a good idea.

   Demographics

The subject matter of demographics can be viewed from two key perspectives. First, consider who your customers are and their importance to being close to your business. This is crucial for retailers and service providers but might not be as crucial for other organizations. Your demographic description of your target market will aid this choice.

Then observe the neighborhood. Do enough residents who fit your target market make up your local client base, if that’s the case, to sustain your company? Does the neighborhood have a strong economic foundation that will support your business? Think twice before investing in areas where the economy relies heavily on one sector. A downturn could be disastrous for local businesses.

Also, the influence of the neighborhood on your company must be considered before you open for business. You may find it helpful to choose the ideal company location by asking the following questions: Is the neighborhood friendly to small businesses? does your company, in any manner, assist the neighborhood? Do the values of your business and those of the community align?

Will you be able to cultivate enduring connections with the neighborhood?

How about your workforce?

Consider your workforce right now. What abilities do you require, and can you find individuals with those skills? Does the neighborhood have the means to meet their needs? Exists enough homes exist in a suitable price range? Will your staff members be satisfied with the community’s leisure, culture, and other facilities?

   Customers Movement

Foot traffic is essential to consider for the majority of business startups. Even the finest retail spaces have dead spots where customers will likely pass by, so you don’t want to be hidden away. On the other hand, if your industry demands secrecy, you might not want to be near many people. Ensure the foot traffic outside a potential location meets your requirements. This can be done by watching it at various times and on various days of the week.

    Parking Availability And Access

Consider how convenient it will be for customers, staff, and suppliers to use your startup’s site. How effortless is it for cars to enter and exit your parking space if it is located on a busy street? Are people with disabilities able to utilize the facility? What kind of shipments are you most likely to receive, and can your suppliers transport goods to your company quickly and effectively?

If you’re receiving freight on pallets, trucking companies will need sufficient roads and loading docks, and small-package couriers need to be able to get in and out swiftly. Learn about the accessibility and service days and hours of the locations of your business startup you are thinking about. Are the heating and cooling devices turned on or off over the weekends and at night?

Are there times when exterior doors in workplace buildings are locked, and if so, do you have access to keys if you’re inside during those times? If you want to work weekends, but the office building is closed on weekends, they may give you access but turn off the heat and air conditioning, making it unbearably hot in the summer and freezing in the cold weather.

Make sure there is sufficient, accessible parking for both clients and staff. Take the time to observe the facility at different times and days to see how the demand for parking changes, just like with foot traffic. Also, check that the parking area is adequately illuminated and maintained.

    Security

It may surprise you to learn that your location can affect your likelihood of being a victim of crime, which can affect your insurance costs as well as the extra security precautions you may need to take to keep your property secure. We can all agree that when making business choices, information, intuition, and probability are all used, along with a little luck.

However, a key component of the decision-making process is understanding the likelihood of crime in the areas you contemplate. You can make an informed choice about where to locate your startup shop, office, or warehouse by consulting government crime data. You can better plan and take the necessary precautions by being aware of the risks associated with potential criminal activity.

   Proximity To Other Amenities And Companies

Consider the neighborhood’s various businesses and services from two important angles. Check to see if you can first profit from nearby businesses by the foot traffic they bring in because those businesses and the people who work there might become your clients or because it might be more convenient and effective for you to be their client.

Second, consider how they’ll improve the working environment at your business. Do your workers have access to a sufficient number of restaurants in the area where they can go for lunch? Is there a daycare facility close by for staff members with kids? Are nearby stores and services that you and your staff need close by?

    Competition

Your proximity to rival companies might greatly impact your performance. Could they be advantageous to your company or a hindrance? Knowing your local competitors’ offerings and where they are located could help you pick the best spot for your company. If there is too much competition, it might indicate that you should broaden your search to a different area.

There are some exceptions to this rule, such as auto dealerships that prefer to be nearby to one another so that customers can compare and select the best car deals. Similarly, picking a region with a mature market could be the best way to attract customers quickly and establish a presence in a new area in a reasonable amount of time if you have a unique aspect of your offering or provide some innovation.

    Site’s History And Current Image

How does this location portray your business? Ensure your location correctly portrays the image you want to project, particularly targeting a local market. Checking out the site’s past is another smart move. Think about how it has changed over time. Inquire about prior renters. You may have an insurmountable disadvantage if establishing a restaurant where five other restaurants have failed.

This may be because the location is problematic or because people assume your establishment will suffer the same fate as the previous occupants. To determine whether the issue was with the businesses or the location, study why various types of businesses have failed there. The fact that the previous occupants were extremely successful is undoubtedly a positive indication.

Still, it would help if you tempered that with knowledge of the types of businesses they ran compared to yours. Find out if any laws or zoning limitations impact your company. You probably don’t want a liquor store to open next to your daycare center, so look into the location you’re considering and any nearby properties.

  Business Rates

Money is supreme! Cash flow is important because it determines whether a company can survive and pay its debts. To ensure you can afford the property, it is crucial to study the typical business rates in the area, including rent and utility costs. Before committing to a place, hidden costs like deposits and whether you need to pay for parking should be eliminated.

A commitment outside of your means can be avoided by estimating the location’s living expenses.

  Taxes

Once your company is established, you will be subject to several taxes. Depending on the state and region, these changes. Additionally, some regions create advantageous tax conditions by favoring certain businesses. Therefore, it is crucial to consider these factors before choosing your company’s location. Sales tax, income tax, corporate tax, and property tax are just a few of the taxes frequently assessed against companies.

  The Area’s Skill Foundation

Find out if the local skill base can meet your requirements. Likewise, consider employment statistics. It is best to go where there is a strong talent pool if you depend on skilled employees. Since employees are frequently a company’s greatest asset, selecting a location where the necessary talent is lacking could be the beginning of your company’s demise.

Some recruitment agencies will gladly give you CVs without charge so you can get a feel for the market; they only charge you if you choose to interview and hire someone. Alternatively, you can rapidly determine the caliber of workers in a specific area by posting a free job on an online job board.

  Needs In Terms Of Technology

Although more structures are wired for high-tech requirements, older buildings may not always be essential when considering a location. You don’t want to blow out the building’s power source if your company needs a lot of electricity for computers, printers, servers, etc. When visiting your store, eating in your restaurant, having their hair cut, or waiting in your lobby before appointments, many customers anticipate free Wi-Fi.

Check with your Wi-Fi provider to ensure you can give your customers free Wi-Fi and that your back-office Wi-Fi is separate and password-protected.

  Possibility Of Growth Of The Startup

When choosing a location for your business startup, ask questions such as; will the location handle increased company or demand? Moving locations is a major disruption that can be expensive and time demanding. Whether the chosen spot will be used only temporarily or if you intend to occupy it permanently must be determined.

Therefore, a location’s adaptability may be crucial when determining whether the space suits your company’s requirements. While every company has a different ideal location for its operations, focusing on these key areas will give you the best chance to overcome the odds and keep your company headed in the right direction.

  Other Viable Options

Can you work from home to manage your new company? Naturally, operating online is not a viable option for all businesses, and you should check your local zoning laws for any limitations. A shared office setting, also known as a coworking space, is where many service companies are first established. These settings frequently provide office space and additional services like a receptionist, office supplies, and mailing services.

Conclusion

The endless possibilities for company locations can frequently lead to decision fatigue because the action is irreversible. However, by thoroughly researching your choices and weighing them, you can raise your chances of success. To choose your company’s location, try to understand the appropriate taxes, zoning laws, and regulations and strategically choose the state, city, and neighborhood where it will be located. It also impacts the variables that affect your business operations, profitability, scalability, costs, etc. Your market share can be increased, or labor and raw material prices can be decreased. Also, risk can be reduced, and you can benefit from local laws and policies by choosing a location that is well thought out.

Examine the elements mentioned earlier to determine if you would fit in at the desired place and analyze your compatibility with it. Take your time to prevent choosing the incorrect investment. You can also consider hiring an advisor to choose the ideal location for your company.

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