The Characteristics of a Good Location of a Business
One of the things that need to be ensured in establishing a business is choosing the right location for it. Of course when we talked about the location, the thing that is brought to our mind is “strategic”.
A business needs to have a strategic location to do business. It is a place where communication and transportation are so much accessible; a place where people most likely go and a place where your product and services can easily be accessed by the consumers. Having a strategic location for your business is truly an advantage and an edge against your competitors.
Like what mentioned, a good location for the business should have accessibility. It means that there should be a convenient, fast or easy and available means of transportation for the consumers to reach your business.
Another thing is that the location should have an allowance for expansion. Since business grows, there are possibilities of acquiring additional space for your establishment to be able to cater with the needs of your business. This is one of the reason why you should consider also the possible expansion that could take place in the future time before choosing the location of the business.
The product demand should be also considered. You should also consider that the products or services that you offer are fit for the location or not. Even though the location is good but if the products and services are not fit for the said location, still it is not considered as strategic for your business. You must ensure that your products or services should have the population that needs these.
The availability of power, fuel as well as water supply should also be considered. The location for your business establishment needs not only the strategic position but should also ensure that the availability of some resources such as the power, the fuel and the water are accessible. These resources are important factors in running your business and it should be considered as the factors that should be first ensured upon choosing the right location for the business.
If you are into the production or manufacturing business, one of the important factors is to ensure that the area for your business should have an abundant supply of raw materials that are needed in your manufacturing or production processes. Having this saves you time, energy and cost for the expenses of the raw materials as these materials can only be found in a nearby place.
Where is the Competition?
Something else to consider when deciding on a location for your new business, is where is your main competition? For example if you are starting a liquor store or a health food store, you should find all of the competition near you, because you do not want five of the same types of businesses nearby to your location, as that would certainly limit the number of customers you will. Unless you have something unique to offer that the nearby businesses do not offer, you will be competing against the same type of businesses that already have a loyal clientele.