A business owner can develop the best products, construct the most stunning business space, hire the best employees, and create a rock-solid business plan, but the business will still struggle mightily if the business has picked a terrible location. Picking the right location for a business is so crucial because of the variety of factors it impacts, including customer and vendor access, employee safety, natural disasters, and building functionality. Today's blog post takes a deeper look into the importance of location for small businesses, and why business owners need to consider all the factors before breaking ground on a new location or expansion.

Customer and Vendor Access

A new or expanding business should always consider the proximity to their ideal customer base before choosing a location. It should be close to their target customers, and customers need to be able to easily access the location. Business owners should consider the traffic flow at all times of day, as well as the number of available entry points for both customers and vendors. Even if customers can easily turn into a company's parking lot, a delivery driver or vendor might not be able to easily access loading docks or delivery areas because of narrow roads, tight spaces, or lack of dedicated turns. Also, will construction, or city events like parades or community events, impact these roadways?

Building Age & Construction

Another factor companies should consider before choosing a location for their business is the age of the existing building and its construction quality. An office building or retail center might be in a prime location within the city, but the structure itself might need extensive work or be difficult to insure because of potential hazards or city code violations. For example, the business structure might contain old electrical wiring, asbestos, or lead-based paint that could pose safety and health hazards to employees and customers. In addition, business owners should also consider the construction quality and determine if the building is worth the time, energy and financial resources needed to make it fully functional and safe.

Impacts Commercial Insurance Coverage

One of the lesser known, but still important factors to consider when choosing a business location is the direct impact it has on commercial insurance coverage. One of the first factors considered when getting a commercial insurance quote is the location of the business, since it can be much more difficult to protect a company and the value of its assets if the business is located in a riskier location. For example, commercial insurance providers will look at the location's proximity to the coastline because of the increased chance of coastal flooding from severe tropical weather. By choosing a location farther away from the coastline, businesses can see lower premium costs for their Business Owners Policy, Commercial Property, Commercial Auto, Workers Compensation, and Commercial Flood Insurance policies.

Businesses must thoroughly consider a number of factors before committing to a location for their business in order to increase their chance for long-term success. Aegis Insurance & Financial Services can help businesses make the best decision possible for new or second locations by offering quotes, recommendations, and guidance throughout the entire process. Contact Aegis today at 713-850-7622 for more information on our full range of Commercial Insurance policies, or go online to request a free quote!