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Looking for the right location: Six tips for settling in Bavaria
Searching for the perfect location can be difficult for companies, but this is not a decision to be made lightly since the right location is crucial to business success.
What must be considered when selecting a location?
Making this decision is especially difficult for companies that want to settle in Bavaria since there are so many suitable locations available. From undeveloped commercial areas to turnkey properties, there are more than enough places to choose from. Metropolitan areas with a high density of companies and innovations, more rural areas with an excellent connection to local champions or everything in between – which location is better? Business is dependent on its location, which is why a location must be analysed in detail and the business' own needs must be clarified at the start of every business activity.
In the following, we have summarised several items to bear in mind which should help you with this clarification:
1. Analyse potential
Before signing a rental contract, let alone buying anything, you should carry out a precise analysis of the potential of your intended location. Define the most important criteria for your location and weigh them – there is no one-size-fits-all formula for all sectors, unfortunately. These criteria include points such as demand potential, location costs, state and official requirements, personal and work conditions, the talent pool, and funding, incentive and support programmes. The list can of course be extended to include your specific needs.
2. Mind the competition
Is the competition settled closely nearby? Does your product or service stand out enough from the competition's so that the proximity will not become a disadvantage?
3. Use synergy effects
Has a strong sector focus already developed in the location of your choice? This can be useful under certain conditions as you can profit from regional clusters and enter into profitable partnerships.
4. Compare locations
Even if everything seems perfect at first glance, look for alternatives. It is best to compare your various options with a traditional list of pros and cons where all of your weighted location criteria are considered.
5. Look ahead
Even if a location does not appear to be the best decision right now, perhaps investments have already been made with the goal of developing this location in particular into a centre for your sector in the coming years? In any case, find out more about the future prospects so that your company will remain stable and can grow in peace.
6. Own rooms or a sharing model?
The question arises, especially for start-ups at an early stage, whether own rooms are absolutely necessary or whether perhaps another model is a better fit. For example, how about a co-working space in one of Bavaria's numerous business incubators?
Regardless of whether companies are looking for the right property or for building land: You can find the perfect location for your search query in our Interactive Competency Map with Commercial Sites and at SISBY. The different search categories also help you explore the potentials of various locations in Bavaria for your location analysis. In addition to the automated query, you can receive further support from Invest in Bavaria for settling in the State if you would like, and not just when it comes to selecting the right location but also for taking the first legal steps or establishing contact with networks. We would be happy to provide you with more information. Contact us free of charge, confidentially and without obligation.
Bavaria first class with location factors
The factors most important to you depend primarily on your sector, of course. There are many reasons why the State of Bavaria is popular among all sectors: For one, its leading position in Europe and around the world when it comes to the topic of high technology. It is with good reason that Munich was named a leading ICT location by the European Commission. There is also the ideal infrastructure and the central location in the heart of Europe, which guarantees companies connection to the global market and direct access to half a billion consumers. The highly talented local top managers ensure innovative progress for the companies located here – and even those who do not find the right talents locally will be able to easily attract new specialists to their location thanks to the outstanding quality of life. Another point that should not be ignored: In a nation-wide comparison, companies in Bavarian municipalities profit from moderate trade tax rates – a financial incentive that benefits companies and the locations themselves.