by Shaheen Darr

Created on: October 23, 2009   Last Updated: October 29, 2009

Choosing a suitable location for your business depends upon on a number of different factors, careful consideration of which can contribute to the success or failure of the operation.

Visibility: For retail outlets, it is the number of customers that come into the store to purchase goods that keeps sales levels boosted and helps to pay overhead costs. Choosing a business location that is not easily accessible, means customers might opt to buy from a store that is nearer and less costly to visit. Shops on busy roads or on the high street, for example have a higher chance of getting customers through the door than those on remote locations.

Amenities: Another bonus for a retail store is having parking facilities nearby. This contributes to a less stressful experience for those who want to shop comfortably without having the worry of getting parking tickets or having to walk a long distance to access the store. Large grocery stores especially, need this convenient feature for shoppers who have a number of bags to carry to their cars. Some businesses that require a large storage area or facility for packing might choose warehouses that are situated in industrial areas where businesses with similar set ups operate.

Stores located near easily accessible transport infrastructures also make shopping easier. This can also be a bonus for the business owner especially if he has to travel to his business on a daily basis. Other benefits that influence a business location could include good communication and technological links or training facilities that can be beneficial to the future growth of the business. Close proximity to suppliers or manufacturers can also influence the choice of location to avoid expensive delivery costs.

Reputation and safety of area: Choosing your business in an area that has a safe reputation will be a plus factor especially for women who avoid shopping alone. Good climate or quality of life that an area offers can also be a pulling factor for a business to consider locating there, a factor especially visible in the cafes or restaurants that flourish in seaside resorts

Competition: Healthy competition between stores selling similar products can contribute towards their success as customers as each store has to maintain high standards and yet remain competitive. Customers have a habit of walking into a number of shops selling similar goods before making their minds up about what to buy. An interdependent network can emerge where each store benefits from skilled labour and free flow of related information which attracts similar firms to locate there.

Cost: The affordability of the area will be a major point in choosing the store location. Weighing the outgoings against prospective earnings is important so all factors that will affect the outcome should be considered. Finding new employees, rent, business rates and the cost of heating and air conditioning all have an effect on the choice of a new business.

Laws: It helps to research the desired area for any restrictions on your lease or other operating areas to avoid problems later. Find out if there are any rules against expanding or improving the business, the times of opening and closing and days of opening. Governmental benefits like grants, tax allowances are also taken into consideration by new businesses to reap benefits.

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