Investor`s choice Jun 05, 2024

Guide: the perfect business location in just 5 steps

Location is nothing short of crucial when establishing yourself in a new market, or expanding a business operation. Complex aspects – such as infrastructure, size and business environment – play a key role in this regard. Below, you will discover what to look out for, what you should prioritise – and how Invest in Bavaria can support you in your search efforts.

Mahatma Gandhi once said: “Action expresses priorities.” Because – even if we don’t want to admit it – we can never do several things at once with equal vigour. Setting the right set of priorities is, therefore, an essential dictate for our success. This also applies to any search for a suitable location for your business. In order to help you establish the right priorities at all times, we have drawn up a 5-step plan for you that defines (and prioritises) the most important milestones.

 

1. Get to know your target market, and define your needs and goals accordingly

First things first: right off the bat, you have to deal with the fundamental issues. We have summarised the five most important questions below, which you should answer in step one.

  • Do I want to build, buy or rent?
  • How much space do I need?
  • What are the structural requirements (load-bearing capacity of ceilings, room height, biological-related safety, etc.)?
  • Which infrastructure is important and how (internet, airport, talent, etc.)?
  • What is the timetable?

These questions will provide you with an initial sense of orientation. Of course, different industries and fields of activity place varying levels of importance on different issues: for example, access to educational and research facilities will be a key issue for an R&D location, while access to transport routes – such as rail, road, port and airport and to supply chains – will be at the top of the agenda for a production location. However, given that both provide an answer to the same underlying question (infrastructure), the five starting points above will already give you a useful initial result.

 

2. Gain an overview of possible locations

The basic criteria are what exactly? With that established, you can now gain an initial overview of what options you have on site. If you are looking for a location in Bavaria, this is where Invest in Bavaria comes into play as a partner – free of charge and, of course, confidentially. Simply tell us your minimum requirements. Then, we activate our network to find suitable opportunities for you.

The issue of time is particularly important in this context. This is because a suitable location is only worth something if it is (or becomes) available at the right moment. What good is the perfect location today if you need another six months? Or an option in a year’s time if you need to get started immediately?

 

3.  Make a shortlist of potential locations

This will give you a feel for what is on offer – and how well it fits your requirements. Now it’s time to make an initial selection. Sometimes, that’s not so easy. Especially when there are several great options on the table. There are some fairly simple strategies for turning a longlist into a shortlist, whereby you can also carry out the suggested approaches one after the other, in order to gradually refine your results:

  • Central criteria: your catalogue of requirements can contain many criteria. Now, define the most important criteria that you consider to be truly indispensable for your project. If a location does not fulfil these criteria, it is automatically out of the equation.
     
  • SWOT analysis: this tool helps you to collect and visualise the strengths, weaknesses, opportunities and risks of a location. Your initial gut feeling can thus be strengthened or challenged using reliable facts.
     
  • Cost-benefit analysis: as costs are always a limiting factor, a strictly economic cost-benefit analysis is also recommended. It helps you to objectively assess the financial impact of each decision.

 

4. Take a look at the most interesting locations on site

“All theory is grey, dear friend,” wrote Johann Wolfgang von Goethe, one of Germany’s most influential poets, in 1808 in his most famous work Faust – and this still applies today, in 2024. Therefore: at this point in the process, be sure to take a look at your top locations yourself.

Invest in Bavaria provides support in finding the right location. What’s more: we will be happy to visit the locations in question with you and, if required, we will also ensure that you get to know the right partners for your project on site. We will pick you up at an agreed location – including the airport – visit the selected locations with you and drop you off again at the end. So that you can gain a comprehensive overview on site without any worries.

 

5. Decide on a location – and get started

You have gathered all the important information and made up your own mind. Now is the time to make a decision.

We help you to establish contact with the local authorities, in order to ensure that your investment project is well-supported – and we also lend a helping hand after you have set up your business here. Invest in Bavaria is also a partner for companies that have already arrived in Bavaria. And so, if you are thinking about expanding your location at some point or are looking to expand within the Free State, we remain at your side. Even if you would like to open up new markets from Bavaria, we will be happy to assist you, for example, with the trade fair participation programme of Bayern International.

How Invest in Bavaria supports you

Experience has shown that these five steps will equip you for your search for the perfect location. And what’s more: with us as your partner, you will find it easier to get started in Bavaria, even beyond the search for a location. This is because we understand the funding programmes that grant you the financial leeway you desire when setting up in business, and we know which networks are setting the pace in your industry.

We will also be happy to support you with our expertise if you are looking for highly trained talent. Simply contact us without obligation and let us find out together what Bavaria has to offer you.

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