Going Into Business in West Virginia - West Virginia Department of ...

Choosing a Business Location
Sources of supply: Manufacturers need to be close to suppliers and to consider transportation, labor
and power costs.
Labor force: Another location consideration is employee availability. The prevailing wage rate in an
area can affect your cost of doing business. Also if you run a technology firm, consider locating in an area
with other high-tech businesses so you can tap into a qualified labor pool.
Cost: Space for minimal rent is not always the best reason to choose a location. Why is the rent so low
Find out about a location, how long it has been available and the history of the previous tenants. If
turnover rate is high, it may be considered a “bad location.”
Some other cost considerations besides rent or mortgage are the following:
• Will you need separate insurance from the rest of your business
• What fees and taxes will apply to your business Check with the county clerk and city hall
where you propose to locate.
• How good will this location be in two years five 10 What could change the desirability of
the location
Lease agreements: Read your lease agreement carefully to make sure you understand all the aspects
of it. Seek counsel from an attorney to determine if the agreement suits your needs. Other things to
consider:
• The length of the agreement.
• If your business fails, will you still have to pay until the lease is over
• What share of the utilities will you have to pay
• What insurance coverage will be expected
• What agreement can be reached regarding renovations and additions (adding or removing
walls, adding an awning, adding a sign, wall hangings or fixtures, etc.)
Access to your location is also a prime consideration. A business location should be easy and safe to
enter and exit to and from traffic. Often areas with a high traffic count are difficult to access because
of factors such as one-way streets, center islands on divided highways and simply too much traffic
to make it worth the stop. To get a traffic count for your proposed location, call the West Virginia
Division of Highways Transportation Planning Division at (304) 558-3505 or visit their Web site at
www.transportation.wv.gov/highways/programplanning/preliminary_engineering/traffic_analysis/
trafficvolume/Pages/default.aspx.
West Virginia Development Office–Small Business Development Center 19