Location is very critical to any business. Not every business is ideal for every location. Your business products and services may be the best available but if you are in a wrong location, your sales will always be on the low.
For example: Consider a pig farmer located in a city predominantly inhabited by Muslims, that piggery business would never grow and may possibly fold up soon because Muslims don’t eat pork.
Now that we have looked at an example that shows the importance of choosing the right business location, let’s see the factors to consider when choosing a suitable business location for a particular business.
Factors to consider when choosing a business location
- Suitability: Consider how suitable your business will be to your location. A kids wears shop will be more suitable to a location with young couples than a location occupied by students.
- Close access to raw materials: If your business is into production and manufacturing, you may want to be closer to your raw materials especially if it is readily available at the location or if the cost of transporting them is on the high side. A bottle water company will be best situated near a source of water.
- Closeness to target market: If the cost of transporting your finished products to retailers and direct consumers will be high enough, then locating closer to those retailers, consumers may just be the best option. A company producing power generators may be best located near generator retailers and end users because of the bulkiness in transportation
- Good motorable road: If your business requires that your buyers drive in to buy, or you do delivery using vehicles, then this is a major factor. You wouldn’t want your customers inconveniencing themselves just to buy from you. Also people who own cars won’t find it easy patronizing you if you ignore this factor when choosing your ideal business location.
- Along major/busy roads: Businesses along the major roads get more patronage than similar businesses inside minor streets. This is because buyers prefer to walk into shops and offices they see easily than looking for one they can’t see. A 5 star eatery by a busy road will see more customers than a similar 5 star eatery at the back of the road.
- Erosion: The best time to rent or buy a facility for your business is during the rainy season. I will help you determine which areas are waterlogged and where aren’t. This is very important as you won’t want you office/shop inaccessible days after the rain.
- Closeness to competitors: This can be a good or bad thing depending on how well you play the “competitor card”. Locating close to your competitors can help you take advantage of their customer base by improving on their products and services to entice their customers towards patronizing you. Similarly, your competitors can take advantage of you slip ups and convert your customers.
How to know you are in the right business location
There are some indicators that can help you know that you have chosen a good business location and the are:
- Business growth
- More patronage
- Less idle time
What to do if you business is locate wrongly
If you are convinced your business is situated in a wrong location, use any or a combination of the strategies below to improve your business chances:
- Adapt you products and services to the location.
- Change your products and services.
- Utilize offline & online marketing to drive sales to your business location
- Rent a small new business facility in a good location while using the old location as warehouse
- Sell off the shop and move to a better business location.