CRUCIAL Factors To Consider When Choosing Your Business Location

Mar 21, 2019

4 min read

business location

Location, location, location. It is all about the location. You may have the most exceptional product/service on earth, but if you are located in the middle of nowhere, you won’t make much money. This is why you must conduct a business location analysis. To help you, we have carefully selected the most crucial factors to consider, when choosing a business location for your business.

Proximity to the Market

The closer you are to your customers, the greater the chance that they will buy from you again. Who is your customer and where are they located? Are they other manufacturing companies? or are they an end consumer? You must have answers to these questions,before choosing a business location.

Rent Price

What’s your rent budget? Making pastries always requires an excellent city location. However, a more central location means higher rent. Do you have the resources for expensive rent? Calculate all expenses from the start, or else you are doomed.

Nearness to Suppliers

If your business is doing manufacturing, you’ll require a good location for a business start-up. Nobody likes to spend more money on transportation than they have to. Think twice before choosing a business location, good proximity to suppliers is key in minimising logistics costs.

Analyse the Demographics

Demographics are without a doubt, one of the most significant factors to consider when choosing a business location. It’s important to to be near your target customer group. For example, you don’t want to sell gaming consoles in an area populated with older generations. The sells will be higher in an area dense with your target market.

Good Infrastructure

Good infrastructure is beneficial to any kind of business. Power and water supply, good road connections are just a few factors to consider when choosing your business location.

How Accessible is Your Business Location

Lack of enough parking spaces for your employees, or accessibility for people with disabilities, can be an issue in some locations. A good location for business,is usually not in a busy city area exclusions apply. Nobody wants their employees to spend hours getting to work.Therefore, choose a location that won’t cause any problems with daily routines and tasks.

Distribution Network

If your company does not interact with the final consumers, then choose a location that is closer to your distributors. Easier distribution means less costs for your company.

Competition, to Be Closer or Not to Be?

This business location factor is a double-edged sword. It creates both an advantage and a disadvantage. For instance, if the location has a lot of surplus customers because of your competitors, you might attract them as well– an extra benefit for your business. However, it can also go in the opposite direction – if both sides sell the same product, one team will end up losing.

conclusion

“The closer the products are to your customers, the higher your market value. From planning future expansions, relocating to newer offices, or opening new shops in the right location can mean many things for your business.”

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