Finding the right location for your business can often be the deciding factor between success and failure.

Speaking on MoneyMovesJa with Kalilah Reynolds. Realtor Associate and Certified International Property Specialist at AS James and Associates, Jozette Walker, said that the right location can build or break your business.

According to Walker, there are several things to consider when deciding where to set up shop.

The first and most important is the nature of the business; is it retail, manufacturing or service-based?

Walker highlighted that retailers may be more interested in spots that have increased foot traffic, whereas service-based businesses may be keener on having food establishments nearby for the employees.

She also said it is important to have a clear budget when it comes to location scouting.

“And we’re not talking about just rent. You have to think about maintenance, commercial leases also attract GCT, so there is that to consider. And will you be retrofitting the space? All of this falls under budget,” she explained.

The real estate specialist emphasised that settling into a location is a massive investment for a business. She said that business owners should also consider their scalability and their timeline.

“So, right now you have 20 employees and the space you find may be fine for that, but in six months you plan to add 30 more employees. Will the space be able to accommodate that?” she noted.

She also noted that the demographic of a business’ clientele is crucial.

“If you’re a retailer selling clothes to a certain class of woman, then you might choose a particular location,” she said.

“So you have to analyse your business and choose the location that will ensure your clients and employees are happy and you’ll be able to maximise your profit,” she said.

When it comes time to sign the lease, Walker also said that there are a few key things to keep in mind.

“Firstly, you look at how much your rent is going to increase by per annum,” she said.

She noted that some companies do not fall under the Rent Restriction Act, therefore, landlords can increase rent higher than the usual 7.5% per annum.

She said businesses must know their numbers and ensure their profits justify staying at the location.

She also said it was important to take note of things such as termination and notice. Additionally, are maintenance and utilities included in the rent?

The right location can be a game changer in a business, and the decision should be made with careful thought and adequate research.