Selecting a proper location is one of the major factors to be considered when starting a business. When a location is selected it should observe the long-term perspective of the business. Location selection involves a big investment. Choosing the right place at initial stage will avoid costs of relocation in the future. Improper location selection also results in loss of sales and in turn low revenue and profit. In order to select the right site we need to consider some factors. Here below are some factors you should consider when selecting your business site.
Customers: When you select a site consider the availability customers around your location. This is considered when you intend to sale products and services around the site. Check the closeness of the market around your business and select the site accordingly. If the plan is to sale products and services in other location or online you do not need to worry for this point.
Competitors: Assess the availability of competitors around the site. If there are many competitors in one place it is a sign of the existence of huge market but there is also strong competition. If you get considerable amount of revenue you can proceed with the site which has strong competition. Nil competition means there is a high market or no market at all. So the existence and non-existence of competitors around your site will show you how much market is available.
Transportation: When you select a business location take in to account the existence of public transportation service. Customers come and purchase products and services if there is convenient transportation service. Study also how much does it cost to reach your location. If transportation cost is too high people may prefer to go to other places. So consider the availability and cost of public transport while selecting a site.
Supply and Inventory: When you start a business you sale products and services. These products and services require inputs to be processed or to be resold without any processing. When you select a business site consider the existence and cost of supply and inventory. Sometimes there might be supply and inventory in the location but if the cost is too high you need to be cost effective in selecting.
Utilities: Utilities are the major input to run the day to day business activities. A site must have utilities in place to be considered as a business location. Check the existence of electric power, water, communication and transportation services while selecting a site.
Workforce: The engine of any business is the workforce. The availability of workforce is unquestionable for the success of a business. You cannot run a business alone especially when it grows. You have to consider the existence and cost of workforce while selecting a business location.
Physical Plants: You are not required to build your own plants at initial stage of starting a business due to various reasons. The reasons could be not all business requires a new plant, lack of finance or you are not interested to have your own plant. You need to check the cost of leasing a physical plant and consider it for your site selection.
Future Expansion: A business started today will grow and expand in the future. The expansion requires additional space around the existing location. Consider the availability of space for future expansion when you select a business site.
Parking Facilities: You sell products and services to your customers when they visit your site. When customers visit your site they need parking services. Give careful consideration for the accessibility of parking facilities when you select a business location.
Traffic Flow: You need to consider the general situation of the traffic flow around the location you are going to select. The traffic flow should be as convenient as possible to get the required number of customers. Customers may not frequently visit your site in overcrowded traffic flow areas.
Points to Remember: you need to consider the cumulative effects of the above factors while selecting a business location.