Location Intelligence: Using Map-Based Tools to Identify the Perfect Location for Your Business

If you have a business that depends on customers visiting a physical location – whether it’s retail, professional services, or other commercial endeavors – then where you locate your business is one of the most critical decisions you can make for the long-term success of your business.

Why Does the Location of Your Business Matter?

The location of your business has numerous effects on its operations. Is it convenient for your target customers? Does the surrounding area have a skilled workforce to draw from? Is it near the resources and support services your business needs? How does it affect property costs?

Choosing the right location for your business can mean the difference in being profitable or closing up shop. Real estate is an expensive investment, so you need to do your due diligence to make sure you’re making the right decision.

Location Factors That Affect Site Suitability

There are endless factors that can go into determining the best location for a business. Here are several you may want to consider:

• Market potential and competition
  
  What does the market look like in this area? Is it too small to generate enough business? Or is it too large and saturated with competition? Is there an opportunity gap for your business?

• Demographics
  
  Your business has a target customer profile. That target customer may have an ideal age, education, income, etc. Do your target customers live in the area where you want to put your business?

• Natural hazards and environmental regulations
  
  Is the property in a flood zone that will require additional insurance? Are there wetlands on a property that could limit future development of that site?

• Zoning restrictions
  
  Are you planning on building on the property, leasing it out, or even selling it in the future? Check out zoning requirements before you make a purchase.

• Transportation and accessibility
  
  How much traffic flows past a potential business location? Is there enough parking for your expected customer volume? Are there public transportation options nearby? These kinds of questions affect not only your customers but also potential employees.

• Infrastructure
  
  Certain businesses may have specific needs for utilities and other infrastructure. Similarly, business involved in moving tangible products need to know that their location fits into the bigger logistic picture of their operations.

• Market values
  
  What is the cost of renting or purchasing this location in comparison to those around you? Will you break even when you want to sell it?  

Location Intelligence: Using Geospatial Technology for Site Analysis

Combing through data and information on your own and comparing prospective sites can be time-consuming and overwhelming. You can easily get lost in your research and find yourself left with more questions and fewer answers. 

By leveraging software such as geographic information systems, you can simplify the process and turn weeks or months of analysis into a matter of hours. These types of systems, whether off-the-shelf or custom-built products, can help you organize all the information you need in order to evaluate and compare potential locations. Map visualizations can also be key tools for identifying patterns that may not always be apparent when looking at data in spreadsheets.

For example, you may have a list of prospective sites but know that your business needs to operate at least a half-mile from any streams or wetlands. Geospatial software can let you overlay potential sites with waterbodies and then quickly determine which ones are within your distance threshold in a matter of minutes. 

Maybe your business type does best when it’s located near public transportation stops or other businesses of a certain type. Armed with the right datasets, geospatial software can help identify qualifying prospective sites with ease.

Sometimes your location requirements can be more complex than the basic examples above, and that is where software can truly shine. The insights gained from this type of spatial analysis is something we like to call location intelligence.

Benefits of Using Location Intelligence Technology 

Leveraging location intelligence software for site suitability analysis can make all the difference when locating your business. It can:

• Give you a competitive advantage over others in your industry

• Reveal hidden patterns and trends

• Save time and money

• Lead to better decisions

The location of your business has a huge impact on your future success, so don’t leave it to chance. Rather than purchasing or leasing a property and hoping for the best, consider using data and location intelligence solutions to help drive your decision and give your business the best chance at success!

Reach out today to learn more about using location intelligence to find the right location for your business.