Location

• Footfall


  A measure of the potential number of customers who pass your location during a given time period
• Business to Consumer (B2C)

  • Physical location is required as businesses face customers directly
• Business to Business (B2B)


  • Transactions, just-in-time systems means that deliveries are frequently required
  • Manufacturers insist suppliers are at a certain distance travel time
• Close to natural resources


  Transportation is expensive
• City centres


  • Are costly
  • Need planning permission
• Out of town developments


  Are popular
• Retail businesses


  • Need customers to visit in store regularly for footfall
• Labour


  • Ensure there are lots of workers in specific locations
  • Need to consider population, skill level, wages
• Locating near competitors


  You gain customers as they raise prices
• Locating away from competitors


  Customers have less choice
• Social factors


  • Quality of life for the entrepreneur
  • Good schools, low crime
  • The interests of people in a given area
• Physical location


  • Has become less important with more contact with customers via E-commerce
  • Businesses may operate from homes
• Government influence


  • Affected by tax policies
  • Can offer incentives for businesses in certain areas e.g. grants
  • Need to locate in areas to give businesses planning permission
  • Create jobs in local areas
  • Support small businesses
• Infrastructure


  • Transport links are very important
  • Mindful of distance from customer or from raw materials
  • Public transport access
  • Some need to locate near roads, railways, ports to get products to customers quick and easy
• Location costs include: planning permission, purchasing or rental / leasing, refurbishment, business rates, labour costs, transport costs
• Consider your capital before starting a business