In the realm of business, you’ve probably heard this old mantra a lot: “location, location, location”.
The importance of your business’s location cannot be stressed enough, even in an age where e-commerce has become the norm.
When running a remote business, you may be tempted to believe that location doesn’t matter anymore.
After all, isn’t the beauty of the remote work era our ability to start a business from anywhere?
While it’s true that a well-built business website has the potential to reach many more customers than a physical office, location still plays a significant role in your brand image.
In this article, you will learn how location impacts your audience and how to set up a location strategy so you gain an advantage over your competitors.
Table of contents:
- Why business location still matters in a digital world
- Tips on choosing the right location for your online business
1. Why Business Location Still Matters in a Digital World
Before Covid-19 hit, many small business owners assumed that having a physical office was mandatory – even for businesses that didn’t actually require a brick-and-mortar location.
However, in addition to being extremely expensive, traditional offices involve long-term leases.
Most commercial lease agreements come with fixed costs, which you have to stump up no matter how many sales you make. If you cannot afford to cover that nut, your landlord has various options to recover that debt, including taking legal action against your business.
Plus, if your business grows faster than expected and you need to scale up, you may need to move your business to a new address and pay a penalty for breaking the lease.
With the acceleration of remote working after the pandemic outbreak, many businesses have become aware of the drawbacks of renting a commercial property, so they’ve decided to go fully remote.
While home offices give businesses the ability to save tremendous amounts of money on overhead, they have disadvantages – especially when businesses have no office presence at all.
Some business owners (especially solopreneurs and those running small businesses) believe that operating online means there’s no need to use office space at all.
But, is it really so?
There are many reasons why physical location matters for an online business, including:
- Builds credibility
While it’s true that e-commerce has become more important than ever with 93.5% of global internet users purchasing products online, that doesn’t mean that customers don’t want to see evidence of your business’s existence off the Internet.
When people see that you have an address in a reputable location, they are going to realise that you are legitimate and credible.
- Enables you to rank higher on Google
As you already know, SEO is a key part of running an online business. But what does your company’s location have to do with that?
Google and other search engines want their results to be as relevant as possible for users, so they use the address on your website when listing results for people making search queries that are related to your business.
This means that the right location helps you better reach your target audience by enabling Google to provide more relevant search results.
- Keeps you in line with your competition
Would you trust a business located in a no-name rural town more than a business located in a prestigious area of a large city? Probably not.
You might have a great product, but if your business is in a bad location it suggests that your brand is not on the same level as everybody else.
Choosing the right location allows you to stay in line with your competition and even gain a competitive edge.
- Helps you attract and retain top talent
You might think that your business’s location doesn’t really matter when hiring remotely. After all, your employees don’t need to commute to and from your office location.
However, a prestigious business address helps you build reputation, which is what makes candidates want to work for you.
If your reputation is poor, you won’t be able to attract the top talent you need to achieve your business’s goals.
- Helps you close more deals
Location can massively impact your ability to close more deals and your overall success.
In a study conducted by the economists Vytautas Snieska, Ineta Zykiene, and Daiva Burksaitiene, the attractiveness of a business location (e.g., geographical, infrastructural, cultural environment, etc.) can significantly affect business success.
When you hold your meetings in a professional space that’s located at a prestigious address and comes with accoutrements such as lobby greeters and administrative services, clients are more likely to trust you and do business with you.
Now that you know why physical location matters even when running an online business, let us dig a little bit more into the details of choosing the right location for your business.
2. Tips on Choosing the Right Location for Your Online Business
When on a quest to find the right location for your business, the first step you need to take is to identify the potential needs of your business.
How much space do you actually need? How much are you willing to spend? Are you looking for specific amenities, such as having secure parking areas?
The best location for your business is one where you are able to maximise the expenses and, at the same time, drive business growth.
However, before choosing the right location for your business, be sure to identify the type of office that’s most suitable for your current setup.
Office spaces come in various forms, and it’s important to find one that fits your business needs.
The need for business agility has given rise to a number of flexible office solutions, including co-working spaces, serviced offices, virtual offices, managed offices, and more.
Unlike traditional offices that come with high costs and long-term leases, flexible workspaces are cost-effective and allow businesses to scale up without incurring significant costs.
For example, here at B2B HQ, we offer everything your business needs, including professional address, mail handling service, permanent landline number, fully equipped meeting rooms, and more.
It’s everything you need to register your remote business with ASIC, on Google Maps, and other map providers – but without lock-in contracts or cancellation fees.
Take some time to consider which type of office would be most appropriate for you and your team (while also considering your business’s bottom line).
Once you’ve decided which office type works best for you, it’s time to research the best place to locate your business.
Here are some factors to consider when deciding where to base your business:
- Overhead – Apart from the base rent, think about all costs that can add up, such as shipping costs and office supplies.
- Competition – Based on your unique sales proposition, decide whether or not the proximity of competitors can give you a competitive advantage.
- Accessibility – Your business location must be accessible by private and public transportation. It should also have ample convenient parking for you and your clients, business partners, and employees.
- Infrastructure – Be sure to choose a location where the infrastructure (e.g., air conditioning, Internet connection, phone lines, etc.) can support your operations.
- Customers – In a place where the average householder is over 40, a business marketing to Gen Z would not potentially do well. Considering the demographics of your potential location is important even when running an online business. As we mentioned before, local results appear on Google for people who search for businesses near their location.
- Reputation of the location – It may sound obvious, but the reputation of your business location can make or break your business. Clients, employees, and business partners are all attracted by prestigious and affluent areas that exude success.
Conclusion: Even if you’re running your small business online, you cannot underestimate the importance of location.
In addition to generating quality leads, your business’s location is of utter importance when it comes to attracting the right talent to help you reach the best outcomes.
For a small business, location is even more important because it influences whether or not enough revenue will be generated to support the company’s expenses.
That’s why B2B HQ has selected a prestigious location for our virtual office space right in the heart of Carlton, immediately adjoining Melbourne’s Central Business District.
Our virtual office packages are perfect for online businesses looking to build a professional presence in one of Australia’s top cities without the hefty price tag and ongoing costs.
Plus, you don’t have to commit yourself to a long-term agreement, simply enjoy the benefits of our office space when you need them.
If you’re interested in chatting with us about our virtual office options at B2B HQ, get in touch today!