How To: Find The Perfect Location

Counting Costs

One of the most important site- selection criteria for new businesses is affordability. Many start-ups just look at the base rental rate, not realizing the other expenses, such as common area maintenance and interior improvements, Neitlich says.

Kraus advises researching the costs beyond the space itself. Labor rates, for example, can be higher in a major city than in the surrounding suburbs, and utility rates and taxes vary from town to town.

Part of a location's true cost is whether the lease and building work for your business, Neitlich says. Regardless of the type of business, the right location can improve your start-up business's chances for success if it meets all the business's needs, not just price.

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This article was originally published in the February 1998 print edition of Entrepreneur with the headline: How To: Find The Perfect Location.

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