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Selecting a small business venture location is a matter most entrepreneurs approach carelessly. Many small business start-ups, in an effort to lessen expenditure often settle for an inexpensive location. Others so trust that business location doesn’t matter as long as the product is is of great quality and demands.
In case you are also in-the process of starting a new business or relocating an existing business and getting the best business location is proving quite a problem for you, then below are 10 factors you will have to take into account prior to selecting a small business location.
10 Factors to Consider Before Choosing a Business Location
1. Availability and accessibility to raw materials
In case the type of business you operate or wish to startup is a production or manufacturing business, then the nearness or availability of raw materials to your choice business location is an element you should not joke with. If your corporation isn’t sited close to those raw materials, then sourcing and transportation will drastically reduce your earnings margin and subsequently put you off business in the long-run.
2. Nearness to the target market
Other factors to consider before choosing a business location is the nearness of your small business to its clients. Are your clients resellers or final consumers? Answering this interrogation will assist you identify the finest space to locate your business. Keep in mind that for your business to succeed, you have to make it simple for purchasers to seek out your product and transport it also to their location.
3. Availability of primary infrastructure
Availability of primary infrastructure like electricity, water, good road network etc. can disturb your choice of business location. Facilities are issues to contemplate when finding best location for your business.
4. Government Economic policy
Government policy or system of a specific area could likewise influence your choice and selection of location. Some policy favor capitalists and others are pushed by socialism; where the federal government controls all companies. For instance you may not do well if you open a motorcycle warehouse in Abuja and other state capital where “Okada” has been banned” but getting such a warehouse in Lafia is a sure guarantee for huge turn over
Demographics as an element can have a big effect in your selection of business venture location. The kind of services or products your small business presents and the status (age, nature of occupation, sex, marital status, students etc. ) of the shoppers will play an important role in your selection of small business location. I’ll share an instance:
Suppose you’re into the business of selling stationeries. Which means your demographics needs to be made up of students, so your finest wager of location needs to be inside school neighborhood.
The mindset of your clients or the aura of a selected area is furthermore an element to contemplate when selecting a location to your small business firm. For instance; should you site your small business in a area where tribalism thrives, then you’re doomed if you’re not a member of the tribe.
One other instance is ;
in situation where you are in production or sell of spirits and beer then you may likely not be making sales in locations where sharia abounds and are against such products.
7. Industrial Clusters / areas
Some entrepreneurs could resolve to site their business venture in industrial areas or clusters because of the infrastructure and facilities already on floor. Industrial areas are areas mapped out particularly for business reasons particularly manufacturing companies.
These areas are generally given notable consideration reminiscent of fine road network, steady power supply, and many others. In some definite areas, heavy duty producers are compelled by the federal government to site their firms in these industrial areas.
8. Export processing zones
Locating your enterprise in an export processing zone could also be a sensible choice for you particularly if are an exporter. Finding your business in such areas means a discount in transportation charge, quicker inspection and clearance of your merchandise by custom officers and so forth
9. Free commerce zones
International free commerce zones and trade fair facilities are furthermore fine locations to site your small business as a result of it’s accessibilty and usually receives huge publicity.