How to Find a Good Location for Your Business: Guide for Service Providers

Jan 30, 2025

Choosing the right location for your small business is like setting the stage for a successful performance. Whether you’re in beauty, fitness, wellness, or any other service industry, the location you pick will influence your customer flow, costs, and overall growth.

But don’t worry! You can find the perfect spot to thrive with some strategic thinking and planning. Here’s a comprehensive guide to help you make the best decision.

1. Customer demographics: Know your audience

Whether starting from scratch or expanding your business, it’s important to consider what services you’ll offer, who your customers are, and how their habits can guide you to the best location.

If you’re new to business, start by creating a profile of your ideal customer. Who are they? What does their daily routine look like? Where do they go, and what are their needs? Answering these questions will help you narrow down the areas that are most likely to attract them.

Do your research: Use tools like Google My Business or Facebook Ads to learn where your target customers spend their time.
Match the neighborhood: The right location should reflect your desired experience. For example, a luxury spa may do best in a trendy, high-end area, while a family-friendly gym might suit a residential neighborhood.

TIP: Not sure about the area? Visit it at different times of the day and week. Notice how busy it is, who the regular visitors are, and if the overall vibe matches what you want for your business.

2. Budget and costs: Balancing dream and reality

Your budget is the starting point for choosing the right location. Knowing how much you can afford will help you stay within your limits and focus on realistic options.

Rent vs. revenue: As a rule of thumb, keep your rent at no more than 10–15% of your expected revenue. However, this is a general guideline, and the ideal percentage may vary depending on factors like your industry, location, and business model. If you’re just starting, research industry averages and set realistic revenue goals to avoid overcommitting.
Hidden costs: Rent isn’t the only expense to consider. Plan for utilities, insurance, and any potential costs for renovations or ongoing maintenance. These can add up faster than you expect, so it’s important to budget carefully.
Lease terms: Look for flexible leases, especially if you’re a new business. Shorter terms or renewal options allow you to adapt as your business grows.

TIP: Negotiate your lease terms. Many landlords are open to discussing rent reductions, a month rent-free, or extra benefits to secure a tenant.

3. Accessibility: Making it easy for your customers

After setting your budget, focus on finding a location that’s convenient and appealing for your customers. A spot that’s easy to reach and navigate can make all the difference.

Stay close to your audience: Pick a spot that’s near your target customers. For example, a yoga studio might do well in a neighborhood with a high density of young professionals.
Consider parking: Are there enough parking spots for your customers? Free parking is a big plus, but if it’s limited, think about nearby public transport options or whether the area is easy to walk to.
Leverage foot traffic: Are there other businesses or attractions nearby that will naturally bring potential customers past your door?

4. Understanding your competitors

Competitors can be both a challenge and an opportunity. Being too close to them might make it harder to stand out, but it can also help attract customers who are already looking for services like yours.

Scout the area: Check out similar businesses nearby. Are they thriving or struggling? What gaps could your business fill?
Avoid oversaturation: If you’re opening a nail salon, you probably don’t want to be on a street with five others. Instead, look for places where your service is in demand but underrepresented.
Learn from them: Competitors can teach you a lot. Study their locations and customer flow to see what’s working for them and what isn’t.

TIP: Don’t rule out an area just because it has competitors. Their presence could mean strong demand for your service—you just need to find your unique edge.

5. Safety and reputation

Your customers need to feel safe and comfortable when visiting your business. A poorly lit or unsafe area can turn them away and hurt your chances of building loyalty.

Check crime rates: Research the area’s safety statistics. This information is often available online or through local government websites.
Ask around: Talk to locals and nearby businesses to understand the area’s perception.

6. Aesthetic appeal

First impressions matter, and your location should reflect your brand’s personality and values.

Outside look: Take a good look at the exterior. Is it clean, inviting, and reflective of the experience you want to offer? A well-maintained storefront can make all the difference.
Interior potential: Consider the layout, natural lighting, and overall vibe of the space. It should be easy to transform it into a place that feels uniquely yours.

7. Future growth potential

Choose a location that can support your business in the long run. You don’t want to outgrow the space too quickly or struggle if the area changes.

Trends and developments: Is the neighborhood improving or declining? Check local development plans to make sure they align with your vision for the future.
Scalability: Does the location have space for expansion, or can it help you attract more customers as your business grows?

8. Test before you commit

Before committing to a lease, take some time to evaluate the location in real-world conditions:

Visit multiple times: Check the area during various times of the day and week to see how busy it gets and who frequents it.
Talk to locals: Chat with nearby business owners or residents to get their perspective on the area.
Ask your customers: If you already have customers, find out what they think about the new location. Is it convenient for them? Their feedback can help you make a better decision.

Finding the perfect location for your business isn’t just about choosing a spot—it’s about creating a space where both your business and your customers can thrive. By focusing on key factors like your budget, customer needs, accessibility, and competitors, you’ll be in a strong position to make a smart choice.

A great location won’t guarantee success, but it will give you a solid foundation to grow. And don’t forget—when you have a good location, make sure to promote it. Along with attracting customers from the street, you can draw them in through your booking website or other online resources. Pair it with exceptional service and thoughtful planning, and you’ll be set up for long-term success.

Good luck, and here’s to finding the ideal place for your business to shine!