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How Important is Location When Buying a Business?

How Important is Location When Buying a Business?

Here are some location-related factors to consider when buying a business.

People always talk about location when buying a home, but the location is just as important a consideration when you’re buying a business. The location can influence everything from your clientele to your costs (like taxes, licenses, and insurance), and ultimately it can determine your success. Here are some location-related factors to consider when buying a business.

Consider Zoning When Buying a Business

Zoning is not a small issue. Depending on the location, you may or may not be legally allowed to operate your business there. This is not something that you want to discover after you have signed a contract for a location. In addition to the type of business a given area will allow, there may also be other regulations about signage, parking lots, hours of operation, and other factors that can impact your business. If you’re running a business out of your home, make sure that local zoning allows it as well as your HOA, if you have one. 

Buying a Business in the Right Community

There are many aspects of the community you should look at before considering buying a business. Is the community big enough to support the business? Do the demographics match the target customer? Will there be workers available if you need to hire more employees? Finally, does the community welcome and support a business like this (do they support franchises, local small businesses, or both)? The answers to these questions will help you determine if you choose a property there or continue searching.


Your business should be in a location where your customers won’t mind coming to you and will feel safe when they do so. If the area has a bad reputation, people may not be willing to take the risk to check out your business. A business in an unsuitable location may not be worth buying if you also have to finance a move.


Your business needs visibility if it is going to succeed, plain and simple. You won’t get new customers if they don’t know that you’re there. Choosing a location where people already shop is a solid choice as long as you’re not too close to your competition. 


Before buying a business, look at the expenses associated with its location. A prime location in terms of the factors listed above will probably cost you a lot more than a less ideal one. However, other costs are associated with the less ideal ones, such as increased insurance costs in higher crime areas or the need to advertise more if you choose a less visible location. You should weigh all of these before deciding on a location.

Buy With Atlantic Business Brokerage, Inc.

At Atlantic Business Brokerage, our mission is quite simple; we help sellers sell businesses, and buyers buy businesses! Over the past 30 years, ABBI has facilitated the sale of countless commercial properties, businesses, and franchised locations. With our unparalleled knowledge of the business purchase and sale industry and our network of contacts, we offer services to both buyers and sellers that no other brokerage firm can match.

Contact us to discuss your business buying and selling goals today at 410-561-9800, or Toll-Free at 800-279-7569. Email us at [email protected], and follow us online on Facebook and LinkedIn.

This entry was posted on Monday, November 2nd, 2020 at . Both comments and pings are currently closed.