Crucial factors to consider when choosing your business location

December 11, 2021

Factors to consider when choosing a business location
Location, location, location. It is all about the business location. You may have the most exceptional product or service on earth, but if your business is located in the middle of nowhere, the reality is you won’t make much money. 

Firstly it’s important to find out what business location is good for the type of business you operate. Are you a retail business, mobile business, industrial site, or are you expanding from online business to online and brick-and-mortar? Every business type needs to prioritize different factors when choosing a business location, but there are some fundamental factors that apply to all types of businesses. When choosing a location, you should also consider if you want to announce a new business location for marketing and publicity purposes.

9 things to keep in mind when choosing a business location

A business location strategy takes planning and research and a willingness to thoroughly vet all of your options. To help you, we have carefully selected the most crucial factors to consider, when choosing a business location for your business. With these helpful tips, you can identify the best place to locate your expanding 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

You might think this goes without saying but the rent price is not all you need to consider when it comes to money. When choosing a business location you must consider the hidden cost of doing business as well. Renovations, taxes, utility upgrades, minimum wage requirements, and economic incentives are costs that can increase your costs or save you some money. 

Moreover, don’t underestimate the power of word of mouth. Before you sign the rental papers, speak with other business owners in that area. Find out as much as you can about the location. In the end, you can never know for sure whether a business location will bring success to your business or not, but making thorough research will help you ensure if a location is the best fit for your business.


Demographics are without a doubt, one of the most significant factors to consider when choosing a business location. It’s important 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 sales will be higher in an area dense with your target market.

Infrastructure and accessibility

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.

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 but 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 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 minimizing logistics costs.

Fortunately, you can leverage Enterprise League to find a pool of suppliers near your location. It’s free and it’s simple to use. Just set up your company profile within a minute and find the best suppliers around you with a single search.

Competition – to be closer or not

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. 

Moreover, taking over a business location that’s not saturated by your competition might be a great opportunity to kick-start your business. But make sure that your product or service is in high demand in that area. Keep in mind that the reason your competition is low in some locations might indicate that it just doesn’t fit your business type.

Remote business location

A remote location is another flexible solution that can help any business. Having your business on a B2B platform gives you the benefit to access and work with any location worldwide. You will no longer have location as a barrier and you can easily collaborate with companies from every location and all sectors. Start using the B2B platform, share business tenders, receive proposals and share deals.


Even though safety might be underestimated it’s still one of the most crucial factors when choosing a good business location. This mostly applies to businesses that might be at a higher risk for burglary and theft but applies to every type of business as well. Your and your employee’s safety can’t be compromised, especially if your business operates during the night.

Recruiting efforts

If you are planning to hire employees, good access to public transportation will be a big plus for your business. Finding quality employees is not easy these days, so don’t put yourself in a position to lower your standards because you couldn’t entice a qualified workforce.


There are a lot of factors to consider when choosing a business location. From the rent price to available parking, to market demand, it’s all worth it since picking a good location will significantly help you kick-start your business.

The closer the products are to your customers, the higher your market value. Lastly, after going through all these factors, judge your location from customers’ or employees’ perspectives, besides from you as a business owner, and get even more insights to help you make the best decision.

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