Factors to Consider When Deciding Where to Locate your Business
Factors to consider when deciding where to locate your business
Various factors determine the success of any business. Location of your business is one of the major factors that determine how your business works. Locating your business is, therefore, a very crucial step and should actually be considered at the initial planning stage. Where you set up your business will determine the size of the market that you will attract and also the level of competition that you will face. It is very important that you plan well to avoid future failures and frustrations. Below is a list of factors that you should consider and that should ensure that you locate your enterprise at an ideal position.
1.Availability of labour
Before setting up any business, the first thing you need to know is where you will get the work force needed to carry out the day to day activities of your business. For maximum profit, you should be able to get adequate labour and cheaply. You should consider locating your business at an ideal position, where you can easily access human labour. It becomes very expensive when you set up an enterprise and you have to go out to import or bring labour from somewhere else. You should also consider setting up your business at a location where you can easily access the services of other supporting firms such as the consulting firms. It becomes easier to get all the services you need as compared to when you have to travel far away to just get the same services.
The people that will buy your products or services are very important players. It is very important that you set up your business at a location where you can easily attract a big market. It becomes very discouraging when you have invested on your goods and services delivery only for you to fail in winning the consumers. You must first do enough research and know your target group and where to find them. You can then set up your firm on that specific point.
The Economic policy of a place or country should guide you on where to locate your business. You should consider factors such as how the government regulates tax and levies in an area. You can also find out which type of technology is encouraged in a certain area as some governments limit some types of technology to certain locations. Find out if the economy of that area encourages capitalism or socialism. Then decide which type of policy is likely to favor you and locate your business at the favorable location.
Raw materials are the basic factors of production. It is very important that you identify the raw materials that you will be using and know where they can be found. It is advisable that you set up your firm near the source of the raw materials or where they can be easily accessed so as to reduce the transport costs. We hope this helps.