3.1.5 - Business location

• What is a factor affecting location decisions for businesses?

  Cost of premises
• Why might start-up businesses have limited finance?

  They are newly established and lack funds
• What does having a premises mean for a business?

  They must pay rent, insurance, and taxes
• How does competition affect location decisions?

  It can create a gap in the market
• What is footfall in a business context?

  The number of customers visiting a store
• Why might businesses prefer locations with low wages?

  To reduce labor costs and increase profits
• What is a key consideration for businesses needing specific skills?

  Availability of the type of worker
• Why is proximity to suppliers important for some businesses?

  It reduces transportation costs for raw materials
• What type of businesses need to be near population centers?

  Tertiary sector businesses
• How does location affect online businesses?

  Access is primarily through their website
• What is passing trade in a business context?

  Customers who enter due to visibility
• How can being near competitors be beneficial for a business?

  It can attract customers looking for alternatives
• What might happen if a business locates in a market gap?

  It may not be profitable despite low competition
• What is a common challenge for existing businesses regarding location?

  They face competition from other businesses
• Why might a business need to relocate?

  To find bigger or more suitable premises
• How does the cost of labor vary by location?

  It can be higher in urban areas
• What is the impact of local taxes on business location decisions?

  Higher taxes can deter businesses from locating there
• What is a potential disadvantage of being near competitors?

  Increased competition can reduce profits
• How does location affect supply chain efficiency?

  Proximity to suppliers can lower costs
• What role does market research play in location decisions?

  It helps identify gaps and customer needs
• Why is it important for businesses to consider employee needs in location decisions?

  To attract and retain skilled workers
• What is a common reason for businesses to choose urban locations?

  Access to a larger customer base
• How can businesses benefit from being located near their target market?

  They can increase sales through accessibility
• What is the significance of understanding local demographics for businesses?

  It helps tailor products to customer needs
• Why might a business choose to operate online rather than in a physical location?

  To reduce overhead costs and reach wider markets
• What is a potential advantage of being located in a high footfall area?

  Increased visibility and customer traffic
• How does the type of business influence location decisions?

  Different businesses have varying location needs
• What factors might lead a business to choose a rural location?

  Lower costs and less competition
• How can businesses assess the effectiveness of their location choice?

  By analyzing sales data and customer feedback
• What is a common characteristic of labor-intensive businesses?

  They require a large workforce
• Why is it important for businesses to adapt to changing market conditions?

  To remain competitive and meet customer demands
• How does the availability of skilled labor affect business location decisions?

  It can determine the success of the business
• What is the relationship between location and customer service for businesses?

  Location can enhance accessibility and service quality
• What is a key consideration for businesses targeting specific demographics?

  Location should align with customer preferences
• How can businesses leverage location for competitive advantage?

  By choosing strategic locations to attract customers
• What might be a consequence of poor location choice for a business?

  Reduced sales and customer engagement
• Why is it important for businesses to conduct location analysis?

  To make informed decisions that enhance success
• What is a common reason for businesses to choose suburban locations?

  Lower costs compared to urban areas
• How does location impact a business's marketing strategy?

  It influences target audience and advertising methods
• What role does technology play in modern business location decisions?

  It allows for remote operations and online presence