7 Reasons Why Location is Important When Moving Your Business

Thinking about moving your business? Whether you’re expanding, downsizing, or simply looking for a better fit, your business location plays a massive role in your long-term success. It’s one of the most influential factors in how well your company performs after a relocation.

Choose the right spot, and you could boost sales, attract top talent, cut operational costs, and position your company for long-term growth. Get it wrong, and you might struggle with high costs, poor customer footfall, a talent drain, and a costly repeat move a few years down the line.

So before you sign that lease or start packing boxes, here are seven key reasons why choosing the right location for a business is so important and what to think about when building your business location strategy.

1. Property Costs Can Make or Break Your Business

One of the biggest expenses in business relocation is property costs. If your rent or mortgage is too high, it eats into your profit margins and you may find your business overstretched before it’s had time to settle. But going too cheap might mean sacrificing accessibility, visibility, or the type of premises you need.

Finding the right balance is key. Look for premises that offer long-term affordability without sacrificing key requirements like space, layout, transport links, or nearby amenities. Research nearby property trends so you understand what’s fair and what’s not. And don’t forget to factor in hidden costs like utilities, service charges, and maintenance fees.

2. Being Close to Complementary Businesses Can Help You Grow

Your neighbours matter more than you think.

When your business location is near complementary businesses, it creates a built-in network. You might benefit from shared customer traffic, referral opportunities, or simply being in an area where people are already looking for services like yours.

For example:

• A café near office buildings will naturally attract a weekday crowd.

• A gym next to a healthy food shop creates a seamless customer journey.

• A creative agency in a co-working hub might get referrals from tech startups and freelancers.

  
  

But be careful: if you’re surrounded by direct competitors, you could end up in a price or visibility war. Strategic placement is key.

3. Your Customers Need to Find You Easily

No matter how brilliant your business is, it doesn’t matter if your customers can’t get to you.

Whether you’re retail, hospitality, B2B or service-based, accessibility is crucial. That includes:

• Walk-in potential (high footfall areas)

• Visibility from roads or public spaces

• Parking availability

• Proximity to transport links

  
  

If your target market is local residents, you’ll want to be where they live and shop. If you serve other businesses, an address in a professional or industrial hub can add credibility and convenience.

For eCommerce or logistics? Focus on transport infrastructure and warehousing access.

Ultimately, your business location strategy should start with one question: “Where are our customers and how easily can they reach us?”

4. The Right Location Helps You Attract (and Keep) Great Employees

Your employees are the backbone of your business. If relocating makes their commute longer or more difficult, you risk losing your top talent (and that’s expensive!)

When choosing the right location for a business, consider:

• Public transport options (bus, rail, tube)

• Availability of parking or bike storage

• Access to amenities like shops, gyms, or cafés

• Local cost of living and housing availability

A central, accessible office can also make your company more attractive to new hires, especially in competitive industries where flexibility and lifestyle matter.

If you’re embracing hybrid working, make sure your location still supports occasional in-office days without creating extra barriers for the team.

5. Local Regulations Can Impact Your Business

It’s not just about where your business looks good; it’s also about where it runs smoothly.

Different boroughs, districts, and councils have different rules around:

• Planning permission

• Business rates

• Environmental regulations

• Signage restrictions

• Waste disposal and recycling

  
  

Before moving, take time to understand the local business environment. Some areas may require additional permits, while others may offer business-friendly policies or streamlined processes.

Missing this step can lead to delays, unexpected costs, or frustrating legal headaches after you’ve moved in.

6. Some Locations Offer Incentives for Business Relocation

Did you know that some cities and councils actively offer business relocation incentives?

Depending on where you move, you could qualify for:

• Tax relief or business rate discounts

• Start-up grants or expansion funding

• Reduced rent in business parks or enterprise zones

• Subsidies for staff training or recruitment

  
  

These schemes are often designed to attract specific industries or encourage regeneration in certain areas. It’s worth contacting local business support services or checking your new local authority’s website to see what’s available.

Exploring incentives could not only lower your business location costs, but also free up budget to reinvest in people, tech, or marketing once you move.

7. The Right Business Location Supports Future Growth

Where you are today isn’t where you’ll stay forever, or at least, it shouldn’t be.

When planning a business relocation, don’t just think short-term. Consider your future plans:

• Will the space allow for new hires?

• Is there room to scale up production or services?

• Are there networking or investment opportunities in the area?

• Does the infrastructure support your growth (e.g. faster broadband, freight access)?

  
  

Choosing the right business expansion location means thinking beyond your current needs and creating a foundation that allows you to grow with confidence.

Why Business Location Matters

Your business location is more than just an address. It plays into everything, from directly impacting your costs to the degree of customer access, to employee retention and growth potential.

Before making the move, ask yourself:

1. Is this location cost-effective for long-term success?

2. Does it attract my target customers?

3. Will employees find it easy to commute?

4. Are there incentives or regulations I need to consider?

5. Can this location support business growth?

   
   

Your business relocation strategy should be backed by real research, not just a hunch or a good postcode. The right move can open doors, reduce overheads, and give your business a fresh boost.

FAQs: Business Location & Relocation

1. What factors should I consider when choosing a new business location?

Consider costs, customer accessibility, employee commute times, local regulations, proximity to suppliers or clients, and room for future growth.

2. Are there any government incentives for relocating a business in the UK?

Yes, some local authorities and enterprise zones offer incentives such as reduced business rates, grants, or support programmes—especially for start-ups or growing SMEs.

3. How does location affect employee retention?

A difficult or costly commute can lead to staff frustration and turnover. Accessible, well-connected areas with good amenities are more attractive to current and future employees.

4. Should I prioritise customer access or cheaper rent?

It depends on your business model. Retail or hospitality businesses often need high-footfall areas, while service-based or eCommerce businesses may benefit from cheaper, logistics-friendly locations.

Quick Business Location Checklist

• Have I researched rent, rates, and hidden costs?

• Is the location accessible for customers and employees?

• Are there any local regulations or permits I need to know about?

• Have I explored available grants or relocation incentives?

• Will this location support my future growth plans?

Ready to Make Your Move?

If you’re planning a business relocation and want to make sure your next move is the right one, we're here to help.

We’ve helped businesses across London relocate with confidence for over 45 years, from first-time movers to growing teams looking for long-term space.

Get in touch for a free quote. Let’s find the perfect location and get your business moving in the right direction.

What’s the biggest factor influencing your business move? Drop a comment and let us know!