Plan a Business
Choose a Location
TIPS FOR CHOOSING A BUSINESS LOCATION
1. Determine your Needs
Many business owners choose a location based on what will provide them the most exposure. Also consider these factors:
- Competition – Are the businesses around you complementary or competing?
- Labor Market – Does the area have potential employees? What will their commute be like?
- Supply Chain – Suppliers should be able to find you easily.
- Safety - Consider the crime rate. Is parking close? Will employees feel safe alone in the building or walking to their vehicles?
- Type of Facility - Do you need office, retail, or warehouse space?
- Visibility - Do you need to be visible and/or easily accessible to pedestrian and automobile traffic?
- Zoning Regulations – These determine whether you can conduct your type of business in certain properties or locations. While the City of Houston does not have a formal zoning ordinance, restrictions may be in place through local deed restrictions. If you are considering a home-based business be sure to check if it is allowable under the existing deed restrictions.
2. Evaluate your Finances
Besides determining what you can afford, you will need to be aware of other financial considerations:
- Hidden Costs – Many spaces are not "business-ready". Include costs like renovation, decorating, IT system upgrades, and so on. Will an increase in ongoing expenses, for example, rent, require you to charge more for your product/service?
- Taxes – What are the income/property/sales taxes?
- Minimum Wage – The minimum wage is $7.25 per hour in the State of Texas.
- Incentives – Your business location can determine whether you qualify for city/state economic development programs. For example, are you located in a high-need area?
Find additional business structure guides and resources below:
Do you need additional advice or guidance? These organizations may be able to assist you: