Does location affect how successful your business is?

Does location affect how successful your business is?

 

Bringing a business idea to life is an exciting project for any entrepreneur. The ability to be creative and innovative in the construction of your company can make the decision-making process an enjoyable one. There are, however, some business decisions which are more important than others and location is certainly one of them.

There are a vast range of factors which go into deciding which location is the best choice for your business. Your business idea may have the foundations of the next billionaire brand, but not considering aspects like rent prices, access to skilled workers or even distance from local amenities when choosing your location can be detrimental to your success. Here we will look at some of the more important considerations one should make when choosing a location and how your decision can affect your business.

Location can influence how well you can attract skilled workers

Many entrepreneurs approach their location choice with only the property in mind, questions like: how much the rent will be, how accessible is it, or will the team have a good view. One huge aspect of your location choice which may be overlooked however is whether or not it will be able to attract enough skilled workers to your business. If for example you decide on a site in the centre of a city, you are much more likely to have a greater pool of skilled workers to choose from who are either already living near the city, or are able to commute into the office.

On the other hand, if you choose on a more rural site, you have to question whether you will you be able to tempt these skilled workers to make a more difficult commute to you? The rent for the business property and local housing may be much cheaper, but does your company have enough pull for potential employees to relocate? Considering an accessible workforce should be an important part of your decision process. If you find the perfect location but are unable to attract the right kinds of workers, your business will stagnate before it can get off the ground.

How important are local amenities for my business location?

Another important element of the choice for your business’s location is its proximity to other local amenities and businesses. The reason for this is two-fold. The first is that the amenities are a signal of successful business in the area. Being situated close to these businesses can increase the volume of passing trade, generating regular customer traffic. In addition, if there are direct competitors in the vicinity, this could be another signal that there is a demand for your product in the community, creating overflow business. In this case, you should question when marketing your business, whether it will be able to compete with this competition.

The second reason a close proximity to local amenities is important is for the benefit of your employees. Being close to a wealth of other businesses and services will enrich your employment experience, which will only improve moral within your company. Accessibility to local businesses can also be another aid in attracting high skilled workers, as they can easily envisage the community they will be a part as an employee at your company.

How convenient is your business’s location?

Clearly a high level of accessibility is essential to the success of any business location. Accessibility is however a subjective measure for each individual business; depending on your company’s aim and industry, the importance of convenience will vary. For example, if your business’s success relies on the sale of physical products to customers, then convenience for your customers is essential. In the same vein, convenience for suppliers will be almost as important.

Moreover, the level of convenience will typically come with a cost. Have you considered delivery or planning restrictions for each location on your shortlist? Have you weighed up the business rates of each site?

The decision of choosing a business location will always have advantages and disadvantages, but taking a holistic approach will help you to make the best choice. Laying out your location choice in your business plan is an important aspect of your document. If you would like help with putting together your plan, get in touch today! Contact us online using the form on the right or call 01604 420 420.

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