A business will have to consider many factors when determining where to locate a new branch or operation. Usually, it will have to balance several factors in making a decision. Sometimes one factor may sway the decision:

• It may choose a site with the cheapest land or buildings.

• It might decide on a location that is convenient for key employees. A business needs to be able to recruit staff with the right skills base.

• It might choose a site that has easy access to raw materials. For example, many frozen food factories are located near fishing ports to reduce transport time taken and to keep fish fresh.

Service businesses may not have the foot traffic and high visibility requirements of retailers, but their location has to be convenient for customers and their employees need adequate parking. Manufacturers are concerned with keeping operating cost down, and that means locating near key suppliers in areas accessible for pick-ups and deliveries.

When choosing the best location for your business, your first step is to target the right community. 

 

THE IMPORTANCE OF LOCATION BUSINESS

 

The right location is often critical to the success of a business. Location is particularly important for retail businesses.
Poor location decisions are difficult and expensive to overcome. 
If you are buying an established business it is still necessary to check the suitability of the location because it is reflected in the price paid for goodwill.
There is much to consider when deciding on the location of your business, including:

• Customer profile

• Transport

• Neighborhoods

• Finances

• The longer term future.

Choice of location should not be a once-only decision. Review your location at the time of your lease renewal and when establishing a new outlet.