Does it matter where your business is located? In a world where we can do business remotely, does location still matter and if so, how should you choose where to be based? We offer some advice.

In the news, the Treasury is warning of a drop in national income if the UK leaves the EU and retailers feel the bite of cold weather and an early Easter.

Top news stories

EU exit will hit trade and living standards, Treasury says

A Treasury report says Britain's national income could be 6% smaller by 2030 if the UK leaves the European Union.

Shoppers shun high street as cold weather and early Easter bite

Long-term decline in retail footfall continues with 2.7% drop as consumers move online.

70% of employees believe pay transparency improves employee satisfaction

69% also said they would like to have a better understanding of what fair pay is for their role.

Technology is changing faster than businesses can train staff

More than one-third of IT professionals in the UK have not received any technical training through their employer in the last three years, despite 97% describing is as essential. 

Small company owners regret not getting their business foundations right

Business owners say that, if they could start their company again, they wouldn't rush in so quickly.

Key dates for your diary

30 April: Gender pay reporting comes into force for businesses with 250 or more employees. Find out more about how it may affect you.

2 May: Bank holiday

2 May: Sex Discrimination Order 1976 (Amendment) Regulations (Northern Ireland) 2016 comes into force. Find out more.

Does it matter where you base your business?

Today’s report that footfall dropped 2.7% shows it’s a tricky time for retailers. As more people move to buying online, it’s tempting to think that the location of your business is unimportant. But is this the case?

And what happens if you have an office rather than a shop? Is the location still important?

The simple answer is yes. Here’s why.

The importance of location

Even if you never have a customer through the door and only do business online, your location is still important. Here are a few things that are affected by where you’re based:

• Perception: your address will affect what people think of your business. Whether your business is registered to an in-town location or a rural address, this can affect what people think of the size and reliability of your business. It can even affect their view of your brand.
• Internet connection: from social media and managing your website to fulfilling online orders, in this day and age you need a fast, reliable internet connection. This can be a challenge in rural areas, and the government has admitted it may struggle to roll out superfast speeds.
• Lease and rates: if your business is home-based, you won’t need to worry about this. But if you work from an office, these can have a significant impact on your bottom line. The recent Budget changes should mean a drop in rates for many businesses.
• Staff: your location can affect how many qualified employees you can recruit. This might be based on a wide range of factors, from how many people live in your area to how appealing your office is.

If you have an office or shop that customers visit, your location may be even more important:

• Is it easy for people to get to? If you rely on passing trade, you’ll need a good level of footfall to generate sales. If people come specifically to see you, it will need to be easy to find.
• Are the transport links good? This might include public transport links and enough parking for your customers or employees.
• Does your location match your image? Is the office in a staid business district while your brand is about cutting-edge development? This can have a bigger impact on your customers than you might think.
• Are you close to competitors? This may not matter for some businesses and can be an advantage if you can piggyback on their passing trade. But it can also mean that people find it easier to shop around, so price and service will become more important.

Ways to handle a poor location

If your location doesn’t work well for your business, there are a number of alternative options:

• Change the way you reach customers: look at selling online or offering services through the internet. This allows you to reach people who are based outside your geographical area. For sales, you could try sites like eBay, Amazon and Etsy to test the waters.
• Test out a new location with a pop-up shop: if you want to try a new store, why not set up a pop-up shop to gauge interest. 
• Relocate: the final option is to move your office or store. Look at the factors above to work out the best location for you and get the packing crates ready.