TOPIC 7:

DETERMINING THE BSA 2-B

RIGHT BUSINESS
LOCATION
AGRIENTREP 2201
TOPIC
OUTLINE:
• WHAT IS BUSINESS LOCATION?

• HOW DOES LOCATION IMPACT

BUSINESS?
• HOW TO CHOOSE BUSINESS
LOCATION?
• SIX FACTORS TO CONSIDER WHEN
CHOOSING A BUSINESS LOCATION
LEARNING
OUTCOMES:
At the end of the discussion, we should be
able to:
1. Define Business Location;
2. Understand the importance of business
location and how does it affect business
activities;
3. Discuss the steps on how to choose the
right business location;
4. Explain the different factors that we
should consider in determining the right
business location.
DETERMINING THE RIGHT BUSINESS
LOCATION
One of the most crucial steps in launching a business is selecting a location to
operate. It can determine customer flow, the tone of the workplace, and your
company’s long-term success. Knowing what to search for in a possible venue means
you can find the ideal spot. Finding and selecting the ideal location involves many
different factors, including researching your neighbourhood, reading about
prospective customers’ demographics, and taking competitors’ locations into account.
BUSINESS LOCATION
* Is the place where you will provide your service or sell
your products.

* Is a place or structure occupied by a firm to run its

operations. This includes any structure or establishment
used in conducting a business.
HOW DOES LOCATION
IMPACT BUSINESS?
1. Talent Attraction and Retention
2. Cost
3. Proximity to other Local Businesses
4. Accessibility

5. Demographics
HOW DOES LOCATION
IMPACT BUSINESS?
6. Competition
7. Location Perception
8. Tax and Regulations
9. Growth

10. Footwork
HOW DOES LOCATION
IMPACT BUSINESS?
Ensure the people that live in that locale have the skills you require
TALENT ATTRACTION AND
to run your business.
RETENTION

Cost is a big factor when choosing a good location. While city

centres might be great for talent and accessibility, they usually
COST come with a hefty price tag.
HOW DOES LOCATION
IMPACT BUSINESS?
1. Determine whether you can benefit from the nearby businesses
and their foot traffic.
2. Consider whether these businesses will enhance the quality and
culture of your company.
PROXIMITY TO OTHER 3. Consider whether they will be competitive enough to take
LOCAL BUSINESSES customers or even staff away from your company.
HOW DOES LOCATION
IMPACT BUSINESS?
Finding a location that can be easily accessed by both your
ACCESSIBILITY customers and your staff can make or break a business.

Think about whether your customers are likely to live close by or

DEMOGRAPHICS shop in this area, or whether they would be happy to travel to you.
HOW DOES LOCATION
IMPACT BUSINESS?
Depending on the type of business and the industry you operate in,
COMPETITION the closeness of your competition can either be a good or bad thing.

The reputation of a location is an important business location factor,

LOCATION PERCEPTION especially in small cities or towns where people have preconceived
perceptions about a place.
HOW DOES LOCATION
IMPACT BUSINESS?
Tax and regulations are particularly important for companies
TAX & REGULATIONS wishing to operate in different countries.

When it comes to growth, you’ll want to ensure your place of

GROWTH business is going to be beneficial for the direction your company is
heading.
HOW DOES LOCATION
IMPACT BUSINESS?

If your business needs to have physical premises where customers

can view and buy your products, analyzing footfall in your location
FOOT TRAFFIC
will be very important.
 HOW TO CHOOSE
BUSINESS LOCATION
 Home based Retail
Business Business

1. DECIDE ON Commercial Business

BUSINESS Space

LOCATION
TYPE Mobile Industrial
Business Site
 2. MAKE Taxes

SURE THE Minimum wage

requirements

BUSINESS
LOCATION IS Renovations

WITHIN YOUR Utility upgrades

BUDGET
Economic
incentives
 Keep your brand in mind
when developing your
3. CONSIDER business location
YOUR BRAND strategy and looking at
options.
 You’ll need to secure a
4. THINK location that makes it
ABOUT easy for you to connect
VENDORS with your vendors and
AND suppliers.
SUPPLIERS
 Operating a business
where you feel safe and
5. FIND A protected should not be
SAFE underestimated.
LOCATION
 Look for areas where
your product or service
6. GO WHERE
is in high demand or
THERE IS
where your
DEMAND
competition is fairly
low.
 If you’ll be hiring employees and
managers for your business, you’ll
7. THINK want to make sure you open in an area

ABOUT where there’s good access to public

RECRUITING transportation or where potential

employees will be attracted.
EFFORTS
 No matter how
attractive your business
8. LOOK FOR is, sufficient parking
SITES WITH should be a key
PARKING consideration.
OPTIONS
 SIX FACTORS TO
CONSIDER WHEN
CHOOSING A BUSINESS
LOCATION:
1. ACCESSIBILITY
It’s important to consider local transport links, particularly
main roads and motorways. Property rental and purchase
prices are often steeper in higher density, more
commercialized areas, so there are certainly cost benefits
to seeking a more out of town location, providing your
daily business operations won’t be hampered by poor
transport links.
2. SECURITY
Your location can increase your odds of being affected by
crime, which in turn can influence your insurance
premiums, as well as the additional security measures you
made need to take to keep your premises safe.
3. COMPETITION
If there is too much competition then it may be a warning
sign to expand your horizons to a new location.
4. BUSINESS RATES
It is important to research the average business rates
including rent, utility bills and taxes in the area to ensure
you can afford the premises.
5. SKILL BASE IN THE AREA
Take into account employment rates as well. Employees
are often a business’s biggest asset thus choosing a
location that’s lacking in required talent may be the start
of your business’s downfall.
6. POTENTIAL FOR GROWTH
Moving premises is a big upheaval and can be time
consuming and costly. A decision needs to be made as to
whether the premise you are choosing is a short-term
location or if you would like to stay there for the long
haul.
THANKS FOR
LISTENING!
 ANY
QUESTIONS?
 GROUP 7 Masing, Cherevie
Coronado, Jhunnalou
REPORTERS: Dedase, Charmee
Evacitas, Chona
Colongan, Jane
Burila, Bevelaica
Wales, Jenelyn
Casero, Gidelyn
Lebajan, Francis
Bagood, Dana
Lura, Jericho