by Angelina Moore

Created on: June 30, 2008

Starting out a new business? The location of your business can determine its success or failure. There are lots of factors that you need to take into consideration before you decide to locate your business.

Before we begin looking at the different factors that would affect your business, first of all, what is your type of business? What title does it come under, primary, secondary or tertiary? You may be wondering what these words mean, well basically they are the factors of production. Primary Industry is the first stage in the factors of production it involves farming and agricultures, and is the least popular out of the three stages. The next stage is the secondary industry this involves the manufacturing side of production. This is more popular which huge companies such as Nike because they have a large scale of production. The last stage is tertiary industry. This is the most common type of business out there, it involves selling goods or services to the public. This is most probably the likely business that you would set up.

Once you have decided on the type of business that you are starting out you need to consider the advantages and disadvantages of different locations and then you can make a decision as the best place to locate.

Here are some factors that would affect the location of your business:

1)Natural Resources. This could determine where you determine where you locate to because if your business requires natural resource it may be a good idea to locate near to where the raw materials you require are in high supply. For example, in the steel industry, a business may decide to locate near to a place that is in high supply of iron.

2)Transport Links. This is important because it would save you a lot of money on travel costs to transport you product if you are near transport links such as railways, airports, motorways, and with the rising costs of fuel it is important to save money where possible.

3)The workforce. If your business needs a lot of workers it is a good idea to locate to a place that has high unemployment. This would benefit everyone because the government would reward you with money for helping people get back into work and you would be helping to give people jobs. Also if your business requires certain types of people then it is a good idea to locate to a place where you will find the people that you need. For example; if your business require people who have been to university, then it is a good idea to a place where many people have

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