Choose the right location with an environment analysis

How do you know whether conditions in a particular location are favourable for your business? To find out, you look at various aspects of the area.

Laws and regulations

You start your environmental analysis by going through the environment plan for your location. This will tell you what you can and cannot do at the location, for example, whether shops or hospitality establishments are allowed. You will also see what permits you need and whether you might be able to expand your premises in the future.

Also check what environmental regulations apply to the surrounding area. Is the truck delivering your goods allowed near your business, and what about noise level regulations? Get this information from your municipality.

Include not only existing but also future laws and regulations in your environmental analysis. For example, for reducing CO2 emissions. Do you want to start as a driver for a rapid grocery delivery company in the city centre? Check which new regulations your municipality is working on and which you might also have to deal with. Some municipalities, for instance, want to ban the so-called ‘dark stores’ used by these companies from the city centre because they are a nuisance for residents.

Environment and Planning Act

Since 1 January 2024, the Omgevingswet, the Environment and Planning Act has been in force . This act allows you to apply for permits more quickly and easily. Suppose you want to convert a garage into business space. Or start a museum with a café in an old windmill. Under the new act, an online service counter, the Omgevingsloket (in Dutch), allows you to check in one go whether your application complies with all laws and regulations. You can check which permits you need and apply for them directly.

Political developments

Not only national, but also local political developments can affect your business. Such as plans for extra shopping Sundays in your municipality or legislation on safety. Also take into account measures to reduce nitrogen emissions that may affect your choice of location. For example, if you want to start near a protected Natura 2000 zone. In this case, contact your province for information about the applicable measures.

Building plans

Are there development plans near your business? Suppose your premises are on the edge of town, if there are plans to build a large supermarket that will bring you extra customer visits. That is then a positive factor in your analysis. Also check if there are plans for major roadworks around or on the roads to your business. This can negatively affect your accessibility. You can get this information from your municipality.

Economic situation

When choosing the region or municipality where you want to base your business, also consider the local economic situation. High employment or high unemployment in a region affect what your potential customers can spend.

The KVK Regiodata tool (in Dutch) gives you insight into the advantages and disadvantages of your area and compares it to other locations. Look, for instance, at the number of newly started entrepreneurs or shop vacancies in the neighbourhood. Statistics Netherlands (CBS) also has an overview of regional statistics (in Dutch).

Are you starting a business in a consumer-oriented industry, such as a shop, café or nail salon? Then use the KVK location scan (in Dutch). This free scan allows you to see how suitable the market is for your location. You get figures on the competition and population in your area.

Research your industry and your competition to check whether your plans are feasible in your desired location.

Population structure in your neighbourhood

Are your customers private consumers? Then find out what the population structure is in your community. For example, young families have a different spending pattern than residents of an ageing neighbourhood. Ask CBS for data per neighbourhood. Customer research will help you identify your target group and means you can avoid starting a children's clothes shop in an area with mainly older residents, for example.

Technological developments

Digitising your business offers opportunities. You can make your business processes more efficient and reach more customers through online sales and marketing. This has implications for your choice of location. For instance, do you only need a warehouse for delivering digital orders or also a physical shop location?

Follow-up environment analysis

After an environment analysis, you will know whether conditions in a particular location are favourable for your business. You can extend your research with a full SWOT analysis. Here, you look at internal issues as well as external factors. For example, whether it is more advantageous to rent or buy business premises.