Small Town or Metropolis? How To Choose The Right Starting Point For Your First Business?

In the rush of coming up with your first business ideas, location is a subject that hardly gets a place. It is one factor that most entrepreneurs start considering towards the end of their planning. Despite barely being a part of your first business plan, it is one of the most tedious tasks to complete, and very important. And, contrary to common expectations, quite a few entrepreneurs were born after finding a location with a potential value and not vice-e-versa. It indicates that a location can be as good as a casino with a jackpot; if you have the right perception, you can spin and win real money. Here are ten points to make location finding easy for your first business.

First Business Operations

In the times when some businesses are operating digitally, a retail store may not be a need, but that is not true for everyone. Considering the style of operations helps you find the needs of your first business from a location point of view. It is important because different types of locations are differently priced. For example, a roadside space on the ground floor in a prime location will cost way more than an office space on the fifth floor. But, you cannot have a food joint on the fifth floor or loading and unloading heavy items as a daily chore. You may want to calculate the transport cost if your location is far away from the market. Writing out the needs of your operation can be a good starting point for your location needs. When choosing between metropolises and small towns, make a checklist to see which option will ease operations for your first business.

Foot Traffic Requirement For Your First Business

Not all businesses require foot traffic; for example, if your first business solutions are digital services. But if you are planning to have a retail store, then the scenario changes completely. In such a case, you will have to pay attention to how many new clients and customers you can get from passing pedestrians. Irrespective of your business kind, being present in a metropolis is also good for image if you are planning to build a brand. However, that doesn’t mean businesses in small towns do not succeed.

User Demographics Of Your First Business

One of the most important first business factors to consider in every decision-making is user demographics. Their age, likes, dislikes, and location are crucial because not every place will get you your first business deal. When you look around the location, you need to ensure that you are surrounded by people who represent your target audience. You cannot choose a location just because it’s cheap; the community around you should be capable of affording your product; otherwise, irrespective of your idea, your first business will fail. When choosing between a metropolis and a small town, see which can benefit you and have more people for your demographics.

First Business Loans

Loans can be an important factor for consideration because even if you have the best first business to start, getting a loan could be difficult. While the location of the business plays no role in loan approval, your base could impact the loan differently. Metropolises are known for being the hub of startups and small businesses. Hence, it is common for banks to get a lot of applications, increasing competition. It leads to stricter scrutiny and conditions. However, since the competition is low in small towns, it is far easier to apply and get a loan for your first business. You may even see financial institutions helping you with the process.

Competitors Of Your First Business

Competition can sometimes be good and sometimes bad, depending on the first business you are planning. Sometimes it could mean that you can profit from the overflowing clients of your competition, and sometimes no competition could result in no business at all. So studying your competitors with the benefits and drawbacks of operating in the same market should be your first business meeting agenda. And since competition and opportunities go hand in hand, you should include the comparison of small-towns vs. metropolises in terms of competition in the discussion.

Proximity Of Your First Business To Other Businesses

The proximity to competitors, and the distance between your location and the businesses that could benefit you is another thing to consider. For example, if you plan a cheap coffee and food joint, you could benefit by attracting office workers by offering cheap meals. Alternatively, an area busy with retail stores could bring business to an advertising agency. So, since a busy place could be beneficial for a profit-first business model, list out which businesses could serve as opportunities to prioritize them in your location search.

Image & History Of A Location To See If It Suits Your First Business

Old properties or locations come with a history that can hamper your first business if you don’t run local research before investing. Several factors like water logging, restrictions, curse, or even an old story could be a reason behind your unexpected failure. In addition, the perception of the local community on your product or services, and the space you are willing to buy or rent should be an important factor of consideration. For example, you unknowingly purchase a space for daycare next to a space that will soon be an alcohol store. Many times the sentiments of the local people may not match yours or the image of your first business. But irrespectively, you will have to consider the emotions because customers are everything, and going against the local community will only land you in trouble.

Complete Cost Breakup To Check With The Budget Of Your First Business

Similar to breaking up your first business trip budget, write down the possible costs of leasing the space. Ask for the things that the lease would cover, for example, building maintenance, utility bills, etc. Compare security deposits and energy units when comparing a small town with a metropolis. A cost breakup helps you estimate monthly maintenance besides the one-time expenses. And since you can compare the expenses with your first business budget, the analysis can become a very important decision-maker for your first business.

First Business Grants

Several companies and government aid programs provide grants for entrepreneurs. Since most of these events are organized in metropolises, being situated nearby could help you with participation and networking. Comparatively, if your first business is based in a small town, traveling every time for an event may not be possible due to budget restrictions and other circumstances.

Infrastructure Requirements Of Your First Business

Infrastructure could be a requirement for your first business. For example, if you are planning to use several appliances, strong wiring would be a need. Alternatively, if you think your office space may not need modern facilities, then you could save money by choosing an older building. When you make a comparison between a small town and a metropolis for your first business, considering the availability of certain kinds of infrastructure can be crucial.


A perfect location for your first business is based on several factors: goals, demand for your services, competition, operational requirements, and customer base. While there are other points to consider before location hunting, you should take the most time to make a checklist. The list above with the ten points will help you make a checklist, but your business idea, type, and goal play major roles in deciding the outcomes, and let’s not forget the budget. Comment below the ideal location for your first business, small town vs. metropolis!

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