A good location for business is the main link between demand and supply in the marketplace. Strategically locating your business will optimize the demand of services and goods by customers and at the same time ease the supply of essential resources needed for production such as raw materials, labor, and merchandise.
Thus, we shall be explaining the importance of strategically locating your business place. This will influence your thoughts and decisions as an entrepreneur determined to achieve success. Many entrepreneurs who understood the importance of choosing a business place excelled in their business exponentially. Thus, let’s do likewise.
With this we realize that locating one’s business is a more complex issue than we thought. Any mistake made at this point will greatly impact the business negatively. This calls for maximum attention when taking decisions on where to locate your business. Although the process is complex, it’s not impossible to achieve.
A good location for business will depend on the business sector you are operating in. You’ll notice that retail outlets would turn to be more successful by choosing a location where they can attract the greatest number of passing traffic while a small manufacturer in turn will be successful by choosing a location with greater supply factors like raw materials and skilled labor. With this in mind, you need to make a lot of sacrifices at this stage even if it involves hiring experts to assist youin taking this decision. We should carry out a lot of research and studies of the area before making the move.
In the process of research, it will be wise to consider the business history of the area. If the place previously had a similar business to yours, it will be wise to check on how the person operated.This will prevent mistakes or committing the same errors that others did in the past. All these investigations will obviously require a lot of commitment and expenditures but a little effort today can prevent a lot of troubles in the future.
Relocating a business
As an entrepreneur, once you’ve realized that your business is wrongly positioned and you’ve carried out a lot of activities to ameliorate productivity and profit without success, it’s time to relocate. You can’t continue missing the profit you ought to be making. Before relocation, make sure you’ve carefully studied and made the right decisions this time around. Patience and persistence are vital qualities to any entrepreneur, therefore do not expect to start a business today and make profit overnight. This is not possible and shouldn’t be considered a factor for relocating a business. Relocation should come as the last option because it is a step which will definitely be costly. Thus the entrepreneur ought to calculate the cost of relocating plus benefits which shall be achieved from the new business location and then compare the sum with the profit to be obtained if the business remains at its original location. If relocation remains a good choice at the end of this consideration, the entrepreneur should move on after figuring out what to look for in a business location.
A step by step guide to choosing a store location
We are all linked to retail businesses in one way or the other. If we are not operating it, then we are part of the reason it prospers through our purchases. However, for a retailer to succeed in this domain, greater attention must be paid to the location of the business. There are three main phases in choosing a store location. These three phases apply both to the first time operator and those trying to relocate for better profitability.
Step 1: Figure out the city where you will plant your store
In choosing a store location, you must start by choosing a city where you’ll operate. The city is not chosen haphazardly but by following a guide and a number of characteristics which should be carefully investigated. Find out the size of the city’s trading area in order to specifically locate a strategic position which will yield the most.
It is also very important to consider the population of the different cities around and pick the city with the highest population and large trading area. Attention should also be paid to the population trend of the area. Find out if the population is increasing or decreasing. If it’s increasing, then things are working to your advantage. It is also important to find out about the total purchasing power of that city.
Last but not the least thing to check is the level of competition. Carefully study the quality and aggressiveness of the competition in these cities. All these characteristics should be evaluated by the retailer in all the cities in order to narrow down the list and make the process of choosing a store location very easy. At this point, simply pick out the city whose factors are favorable to your profitability.
Step 2: Figure out a particular area in the city
Once we’ve already accessed the best city among all, it’s time to pick a strategic area in which you are sure to make the highest profit. This area in the city is not also chosen in a haphazard manner. There exist a good number of characteristics used to narrow down to the best area. Carefully evaluate the customer attraction power since it is at the basis of this that you’ll make your store profitable. Diligently figure out the availability of access routes to the stores alongside the nature of competition. Study and master the sales and traffic growth prospects of the trade area. Find out the different zoning regulations. It is on the basis of all these factors that you evaluate each area in the city to figure out the best.
Step 3: Consider a precise site in the area
Figuring out the precise site of the store becomes the last phase of choosing a store location. In doing this, you also need to investigate and pick out the site with the highest in-flow of population. Find out the cost of the site and competition around. With these answers at hand, evaluate all the sites and come up with that which is likely to yield the highest.
The overall step by step guide inchoosing any type of business location
Step 1: Selection of country
Each country has its own business laws and regulations and not all these laws and regulations are suitable for the profitability of entrepreneurs. This therefore creates room for the entrepreneur to seek the differences between these countries and find that which favors their profitability.
Global trade treaties are under continuous negotiation. In addition, economic and political climates keep on fluctuating with time. Thus we can affirm that suitable business conditions in different countries change every year. This demands us to be highly selective when choosing a country to do business in. Several entrepreneurs who worked hard for years did have their efforts and struggles brought to naught by wars and other political instabilities in the countries they operated in.
Nevertheless, in selecting a country, one needs to pay attention and know what to look for in a business location. Several entrepreneurs when choosing a country are more interested in looking for the country’s market potential, cost of raw materials, and labor availability.
All countries do not tax at the same rate neither do they have the same tax benefits. Thus many entrepreneurs when figuring out what to look for in a business location often turn to rely on its tax benefits.
Step 2: Selection of a part in the country
A country has several parts and not all its parts are suitable for the installation of your business. There are some parts that turn to offer greater business opportunities than others. And for sure a greater business opportunity is what to look for in a business location. Nevertheless, choosing which part of the country is best for your business interest is not a matter of probability. We do so through the evaluation of a good number of phenomena which represent what to look for in a business location.
Check all the parts of the country and figure out that with sufficient employee housing. There are some businesses which often provide employees with houses while others do not. No matter the case, it is very important to figure out housing availability and its cost.
What to look for in a business location – check out on the quality of the residence. Make sure that the place is well aerated, it has restaurants and parks for recreation. It features medical facilities and no water pollution which can be dangerous to the health of your employees. Climate should seriously be considered since not everyone support harsh climatic conditions.
In most cases, not all parts of the country often turn to have the same tax advantages. Thus it will be wise to consider this phenomenon and also seek some incentives for startups.
Step 3: Select a city
After you must have picked out the best area in the country that will favor your business, it’s time to select the city in which you shall be operating. Check on the city with the highest population. You need to identify competitors when seeking for a good location for business. Looking for businesses whereby your business may be part of the chain process maybe one of the most appropriate things of what to look for in a business location.
Choose the best distance between raw material suppliers. Let your location be as close as possible to both the providers of raw materials and suppliers. Always pay attention to this distance, source of electricity, water, and other natural resources; choose locations that you will operate at a low cost.
In most cases, each city has its own environmental restrictions which you should carefully study. While economic operators consider environmental restrictions to their businesses, it is very important to ensure a safe living environment. This implies you need to evaluate the cost of mitigating and resolving environmental impacts related to your business. All these factors are what to look for in a business location.
Another vital thing to look for in a city is the availability of labor. This is done depending on the type of business that you operate. If you notice that your business will require more of unskilled labor, then you should establish it in the city with the highest amount of unskilled labor. If you realize that it will require more supervisors and technicians, then you should establish where such people are available.
The next thing to access in the different cities is the availability of media channels and their different rates and coverage for advertising and carrying out publicity. At the end of this, you’ll obviously figure out that which is most favorable to you.
Check out on the municipal services of each city and pick out the best. Find out the city which constantly offers adequate water alongside other drainage services.
Step 4: Select the area within the city
After choosing the city that suits your interest, it’s now time to carry out a detailed research and pick out the area that will best suit your interest. For this task, we shall consider a good number of phenomena such as the ability of the shopping district to attract customers, and the general look of the area alongside its population which is our targeted market.
A good location for business easily allows your customers to get access to your business. Make sure that the area you pick out in the city is one which is fully convenient for staff.
What to look for in a business location is the age of the majority of those living in the area, the needs of the majority of the area’s population, and their incomes which obviously reveals their living standards. Without doubt, we know what the youths will be interested is different from what the elderly will be interested in. Thus by knowing the needs of our targeted market, we’ll be able to make it.
Another vital point to consider is the area trend. Before starting up a business in any particular area, make sure you find out if the area is one which is stagnant or progressive. Check if the town planners have intentions of constructing roads, schools, public building, or stadiums in the nearby future. Such plans can likely alter the trend of the area.
It will be to your advantage to find out the history of the area so you have an idea of how the previous merchants were treated by the surrounding population. This brings us to what we will refer to as knowing the friendliness of the people in that area. Knowing this, you’ll be able to know how to properly locate your business for maximum results.
Step 5: Select the specific site
After you must have made bounds round the area you’ve chosen in order to execute your business in, it’s time to pick out the precise site where the business shall fully be implanted.
Make sure that the building you choose for the business does reflect your business’ nature. Those who are retailing should pick out buildings which feature good windows for display, an attractive but distinctive exterior, and some powerful signs indicating that it is a business house.
Another thing to check when searching a good location for business is the design of the building and its surrounding. Being a business house, it should carefully be analyzed by engineers who will check its soil, sewer, water, and power circulation.
Check the number of competitors around. Find out how long they have been there and their power over the market. Also find out their distances from your precise location. If the conditions show that the site is saturated, then it might not be a good idea installing at the site.
The last but not the least of things to consider is the cost of the building. Find a building which is rented out at a reasonable price, one that will permit you to make profit.
The importance of security in choosing a good location for business
Safety and security are the main things we should consider as entrepreneurs. If you are not careful enough to secure your investments well, you’ll likely lose them along the line and run out of market. This security moves from political stability in a country to the site of the business and its daily supervision. We should carefully study the security and crime level of the area and site that we are planning to establish the business in. This is absolutely one of the most important part of the decision making process with your working team. Before installing your business, if you fully know the risk of potential criminal activities in the area, you’ll obviously be able to take adequate precautions and better prepare against such.
In every business that you decide to carry out, you will likely encounter competition. This creates need for us to master how to manage such when it arises. Many experts have argued that the best location that you can pick for your business is that which is close to your biggest competitor. Without doubt, you will fully benefit from their marketing efforts by being close to them. Your competitors have spent much money through advertisements in driving traffic to their business locations, so why spend again when they’ve done it for you. In general, customers often move to the area where the product or service that they are searching for is in abundance. With this in mind, we notice that we can turn competition to our advantage.
Starting a business in a previously used location
Starting a business in a previously used location can easily turn favorable. However, it will be wise to find out why the previous business owner packed out. This can help to prevent you from picking a place which is not favorable for business. If the previous business owner left because of financial difficulties, then you can take over. If he left because he found that the business location was not favorable, then it won’t be wise for you to take over. You’ll easily get customers who were frequently visiting your predecessor coming to you. You’ll also benefit from the previous advertisements which were made by your predecessor. In this way, you’ll spend very little in making the place known.
The importance of recruiting your employees from your business location
Although this business strategy is often neglected, it is one worth taking. It is without doubt that you’ll easily gain customers around a business location when those operating the business are of the locality. People often turn to purchase from those they personally know. Thus, qualified employees that you choose from an area will assist you in advertising your business in a special way.
The relationship between business size and its location
Business size and its location are two inseparable aspects that move together. You need to carefully understand the relationship between these two in order to succeed. If you plan opening a small business, it will be wise to do so near a larger one whereby you can profit from their marketing efforts. But if you plan starting a large business which can fully satisfy all customers, then it will be wise to look for fresh ground where you’ll build your market.
In conclusion, it is impossible to have a perfect business location without any fault but at the same time, we can figure out the most favorable business location to maximize profitability. Business profitability can be influenced negatively or positively by your business location. This creates need for a good location for business startup. In order to prevent the negative aspects which no entrepreneur will welcome, we did present to you the step by step guide to successfully locate or relocate your business and excel. “Nothing good comes easy”, thus, we should not be discouraged by the challenges involved in finding an appropriate business location.
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