You are currently viewing How to choose the right location for your business in Australia

Location often determines the success or failure of a business. In Australia, studies have indicated that a poor choice of location is among the top causes of business failure. To optimise your business opportunities, finding a location most suitable for your company in Australia is crucial.  

Though the cost of commercial property in Australia often reflects its market value and growth potential, this is not the only factor to consider for success. Their accessibility to your customers and suppliers as well as proximity to competitors and transport hubs are just as important. 

There are many factors to consider when deciding the right location, and we list the ones most important to your business: 


Factors to consider when deciding the right location for your business in Australia

Legal factors

The search for the perfect location starts with understanding the local laws and limitations applicable to the business you’re planning to set up in Australia.  

  • Taxes: The state and local taxes in your chosen area can make significant dents to your budget. Consider researching the tax implications in that area before making any major decisions. Your chosen state can have higher or lower tax rates compared to others, and may require additional tax filings from specific types of businesses.
  • Zoning and permits: Check the zoning and required permits of an area before buying or entering into a lease agreement. This will help you know what business activities are allowed or restricted. Including limitations on what you can renovate or add to your building premises. You wouldn’t want to find out too late that you are not allowed to conduct your business activities or remodel the internal fit-out in your building premises after downpayments were made.
  • Government grants: You can avail of government grants on both federal and state levels, but local councils can also run grant programs that are applicable to your business. Depending on your eligibility, you can capitalise on these opportunities when securing the right location for your business. 

Commercial factors

Besides the legal considerations above, you also have to consider factors that directly impact your business operations and bottom line. 

  • Demographics: Your business should be located in close proximity to your target market. You need to make sure there is enough consumer base to support your business.
  • Foot traffic: Your ideal location must be able to generate a high amount of foot traffic to help increase the accessibility of your business to new and existing customers. High foot traffic can translate to more customers and higher sales.
  • Accessibility: Nobody wants to make long commutes to visit or try to find your business. If customers find it stressful to visit your location, they may not want to make another trip. To ensure accessibility, consider choosing a location that:
    • Is in close proximity to major highways 
    • Conveniently located near transport hubs (subways, bus stops, taxi stands, etc.)
    • Has plenty of available car parks and/or street parking
  • Competition: Setting up shop near your competitors can increase foot traffic and consumer demand in that area. This is especially true for retail businesses, where having plenty of choices for shopping is convenient for prospective buyers. But being situated close to your competitors can also negatively impact your business. Carefully weigh the positive and negative aspects relevant to your business.
  • Nearby establishments: The quantity of passing trade near your business can have a positive effect on your success. You can capitalise on this by offering services/products that complement their purchases.
  • Opportunities for Expansion: Though not a priority at the outset, it is always better to think ahead. If the need arises, your business premises might not be able to accommodate your increase in resources. And relocation, especially in Australia, is costly. So always choose a location that can support you with scaling your business. 

Set up your business in the right location with ease

It can be daunting to choose where to establish your company in Australia, especially if you want to make the best choice possible. If you’re unsure where to start, you can reach out to us for professional assistance in securing the best location for your new Australian company. 


Author Bio

Venus Angelli David is a Digital Copywriter with over 7 years of experience writing about business, recruitment, tech, and immigration for consulting firms in Australia, Singapore, the Philippines, and Indonesia. She loves coffee, cats, and yoga.