Starting a new business is an exciting and challenging journey. Among all the decisions you’ll make, choosing the right location is one of the most important. Where you set up shop influences your customer base, operational costs, and long-term growth potential.
As someone who transitioned from working at Google to running my own marketing firm, JC Marketing, I’ve learned firsthand that a business’s success is deeply tied to where it’s planted. While completing a Master of Science in Human-Computer Interaction (HCIjerM) at the University of Maryland in Baltimore, MD, I studied how people interact with systems and environments—lessons that extend far beyond digital design. Just as a website’s usability affects engagement, a business’s physical location shapes how customers discover, experience, and connect with it.
Know Your Audience and Where They Are
Every great location decision begins with a deep understanding of your target audience. Who are your customers? Where do they live, work, and spend their time? How do they prefer to access products or services like yours?
For instance, if your business caters to young professionals, a busy downtown area such as Brooklyn might be ideal. Brooklyn’s growing entrepreneurial community, combined with its mix of cultural diversity and urban energy, provides fertile ground for startups. On the other hand, if your business serves families, you may find better opportunities in suburban areas with strong community ties.
Your goal is to make it as easy as possible for your ideal customers to find and interact with you. When your location aligns with their habits and lifestyles, you’re already a step ahead.
Understand the Competitive Landscape
Before committing to a location, take time to study your competition. Too much competition can make it hard to stand out, while too little might signal low demand. Spend time in potential neighborhoods. Visit similar businesses, observe how they engage customers, and identify what they might be missing.
When Cinthya Garza Martinez and II considered expanding JC Marketing, I researched other firms in the area to identify where our approach could add unique value. Understanding the competitive environment doesn’t just help you find gaps—it helps you position your business with clarity and confidence.
Evaluate Financial Realities
Financial planning plays a major role in location decisions. Rent, property taxes, utilities, and local regulations can vary dramatically between cities.
If you’re considering New York City as your base, for example, Brooklyn offers a mix of affordability and access to talent, especially for small business owners. If you’re considering Maryland – Baltimore,MD provides small business grants, tax credits, and startup support programs designed to foster local entrepreneurship. It’s important to factor in these advantages when comparing locations.
Make sure your financial plan includes not only rent but also costs related to renovation, signage, parking, and insurance. A well-thought-out budget helps you launch from a position of strength rather than struggle.
Accessibility for Customers and Employees
Accessibility is another critical factor. Whether your business relies on walk-ins, appointments, or deliveries, your location needs to be easy to reach. Consider access to public transportation, parking availability, and traffic flow.
If clients or employees find it difficult to get to your office, frustration will build quickly. For businesses in urban centers like Brooklyn, visibility and convenience can make a huge difference in attracting and retaining customers. A well-chosen location not only draws people in but also encourages them to return.
Look for a Supportive Community
Beyond the physical space, consider the local community. A neighborhood with a strong small business network can offer incredible advantages—partnerships, referrals, and shared resources.
Brooklyn, for instance, has several thriving small business initiatives, local chambers of commerce, and collaborative workspaces that make it easier for new businesses to connect and grow. Surrounding yourself with a supportive community can help your business establish roots more quickly and sustainably.
Plan for the Future
Choosing a location isn’t just about what works today—it’s also about future growth. Can your space accommodate new staff or services? Will the area continue to attract your target audience in the coming years?
Market dynamics change fast. Choosing an adaptable space or one that offers room for expansion allows your business to evolve without the expense and disruption of relocating. When you plan for growth, you’re not just thinking about the present—you’re protecting your long-term investment.
Test Before You Commit
If possible, test your location before signing a long-term lease. Pop-up shops, short-term rentals, or co-working spaces can give you valuable insights into how your business performs in a particular area. You’ll learn more about customer behavior, foot traffic, and community response through real-world experience than through any market research alone.
Testing lets you make informed decisions and minimizes the risk of committing to a location that doesn’t align with your goals.
Stay Flexible and Adaptable
In 2025, flexibility is key. The way people work, shop, and interact continues to shift rapidly. Remote work, hybrid schedules, and changing urban landscapes mean businesses need to stay adaptable.
Choosing a location should be part of an ongoing strategy, not a one-time decision. Stay aware of how your customers’ habits evolve and be willing to adjust your operations or location accordingly. The businesses that thrive in changing times are those that anticipate and respond quickly.
Final Takeaway: Building on the Right Foundation
Your business location is more than just an address—it’s the foundation for your brand’s visibility, accessibility, and growth. The right location enhances credibility, builds customer trust, and sets the stage for long-term success.
For entrepreneurs in Brooklyn, NY, Baltimore, MD and beyond, the best location is one that aligns with your goals, supports your community, and gives you room to grow. By combining thoughtful research with practical insight, you can choose a space that helps your business not just exist, but truly thrive.