What are the dynamics to contemplate when selecting a business location?
Posted by admin Business Tips 0 Choosing the right location for your business is essential for your business venture to succeed. You have to plan and research before you select the location of your business. This article highlights some of the key considerations for selecting a business location.
Core Business Objectives The primary aim of the business will determine where it is located. For example, banks are in the city in order to access the corporate types whereas farms are in rural areas in order to access arable land. Sometimes the entrepreneur will change location and go against the norm because they want to make a statement of intent or to avoid certain difficulties.
A case in point is the relocation of supermarkets from the suburbs into outer city wastelands in order to escape a hostile community reception to planning applications.
Local, National and Regional Rules Certain businesses are controlled as part of public policy and also to enhance public safety. For example, clinical waste disposal sites must be far away from residential areas.
At other times there is an overarching policy that is geared towards concentrating certain businesses within certain localities in order to better provide support and supervision. The business may have an option to change the location but that will come at a significant cost in terms of the loss of the incentives that are associated with a given business hub.
Behavior of Partners and Competitors All businesses operate within a given context. That context is part of a value chain of suppliers, buyers and transporters.
Generally, the perceived threats or benefits associated other parties will influence the location of the business. For example, if a competitor specializes in identical products to a given company; the likelihood is that the two parties will try to keep away from one another.
However, if the two companies are in a symbiotic partnership, a big distance will necessarily increase their transportation costs. Some partnerships call for specific locations in order to facilitate cooperation. Profile of the Locals The people who live in the area where you want to open up a business have an important role to play in determining your location.
Most businesses try to be as close as possible to their customers but a negative response from those customers might mean an alternative location. A case in point is how supermarkets in Europe and North America were forced to move outside the cities and away from the suburbs, partly due to local anger about their building activities.
Government and State Policies Some governments have created economic hubs with specific incentives for businesses that are located within them. Unless you are already a well-established brand that is capable of independent survival, it makes sense to defer to government policy on business.
For example, the Silicon Valley has become an iconic location for the tech industry. The mere fact that your business is located there brings significant government and local incentives.
In particular, you should consider assistance with acquiring land, capital and technical expertise when joining a government-sanctioned business hub.Choosing the right location for your business is essential for your business venture to succeed.
You have to plan and research before you select the location of your business. This article highlights some of the key considerations for selecting a business location. The location you choose for your business can be a make-or-break decision going forward.
In Business Centers Make a Perfect First Office I discussed location a little but because it is so important, I thought I’d go into greater detail on choosing a location in general and more specifically to the post I just referenced, how to choose a business center.
Jun 15, · Though national conversation about choosing a business location is often limited to tax-related regulations, there is much more to consider when starting up. A location’s overhead cost is more than simple rent or mortgage calculation; it’s also about your utilities, taxes, insurance, maintenance, janitorial, etc.
Think about it as how much that exact location would cost to maintain each month. A Guide to Choosing a Location for Your Startup An entrepreneur has many concerns: funding, staffing, developing a marketing strategy and ensuring that they have a viable product or service.
Before beginning the process of starting a business, however, there is one important decision that must be made: where to start the business.
By choosing a location wisely, you eliminate some of the worry that is associated with a new startup. One less thing to worry about is a very good thing indeed.