4 Factors to Consider When Selecting a Business Location

Selecting the ideal business location is guided by a four main factors, namely;
1. Nature and type of business – The nature and type of your business is the single greatest determinant of where the business should be located. Businesses that rely on walk-in customers from the public are the most affected, the main one's being in the service industry. If your business relies heavily on walk-in clients as opposed to businesses that prospect, then location is everything. Getting your location wrong can spell doom for your business. In the restaurant business, for example, there are three "main" rules when setting up. These are, "LOCATION, LOCATION and LOCATION." This example underscores the importance of a great location for restaurants. A study of McDonald's reveals this to be true. Senior management at MacDonald's will tell you that they are burger salespeople but their business is real estate. Therefore, businesses such as restaurants, supermarkets, liquor stores, Ice cream parlors and the like must be located in easily accessible areas with high levels of human traffic. In contrast, businesses such as law firms, accountants, software firms and so forth which do not rely on high levels of human traffic can be located in posh offices within office blocks.
2. Budget – The amount of money you can afford to obtain premises must of course come into play. Most first time entrepreneurs will be renting due to budget constraints. Always try and secure premises that provide the best value for your money considering the nature of business.
3. Space required – Certain types of business require very large amounts of space. For example, car dealerships and car rentals require large space to park their vehicles. This may mean looking for an out of town cheap location.
4. Special facilities needed – Certain types of businesses require special facilities to carry out their business effectively. For example IT companies have some very special mechanical, electrical, plumbing, and fire suppression requirements. Server rooms and computer areas need dedicated cooling units. These must be taken into consideration before settling on a business location.