Essay Example: Business Site Selection

The location of a business is vital for its success. The place of a company is decided based on the type of business startup, facilities, consumers, and resource availability (Sharma et al. 2012). Before launching a business, it is important to lay down a plan of what to expect, the goals, the finances, and what to tolerate, information that will help decide an Ideal location. A bad site can ruin a business with potential, so it is important to give the idea enough attention. The essay will evaluate the different business locations and what business is suitable for each site with an explanation of why a company would be more successful.

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Business locations vary, but there are certain location factors to consider before starting a business. One has to decide whether the company will be done in a lease or a bought premise. If the entrepreneur opts for a rental, it will be important to understand the lease agreement before signing. Other factors to consider include is nearness to raw materials, traffics, and market competiveness. The entrepreneur also need to identify premises with potential. If one is selling merchandise, a retail store is advisable. If one offers services such as painting, saloon, and barbershop, a premise similar to a retail store is recommended. In case the business provides professional services, the entrepreneur requires office spaces (Phelpsn & Wood, 2018). Shopping centers are a good location for businesses such as retail stores and professional services such as insurance companies, hospitals, law firms, and accounting services. Parks and office buildings act as good locations or restaurants and retail shops.

Retail stores require locations around shopping centers, hotel lobbies, shopping malls, and transport centers such as airports and sports centers such as stadiums. The retail store relay on quantity sold, and therefore to sell large quantities, one must consider traffic of cars in the location, pedestrians, and demographic and parking facility. Other factors considered include retail store competitiveness in the area and sufficient spacing to store and display goods (Wainwright, 2016). The location determines the success or failure of a retail store. Placing a retail store in a suburban area with no large pedestrian and automotive traffic can result in minimal profits than a retail store set up in a busy shopping center.

Established shopping centers have good Commercial spaces. Commercial spaces are good locations for a business that does not require retail services. Commercial spaces are good for insurance, accounting, and consultancy agencies, among other office-based companies. Offices spaces give a company an elevated professionalism image. Commercial space-related businesses do not require population and automotive traffic. They rely on the ability to deliver lucrative services at an affordable cost hence attracting consumers (Sharma et al. 2012). For example, the success of the consultancy agency is determined by location. The agency needs to be easily accessible by a wide group of people, and a desirable location advises a shopping Centre.

A home-based business location is good for small startups with limited capital. It has more tax benefits, and the entrepreneur incurs no commuting cost. As the startup develops and generates enough income, the entrepreneur can decide to move the business from home to another leased or bought premises. Home-based location can be limiting since it often feels isolated; it is easily affected by neighborhood restriction and is constantly threatened by household matter.

References

Phelps, N. A., & Wood, A. M. (2018). The business of location: site selection consultants and the mobilization of knowledge in the location decision. Journal of Economic Geography, 18(5), 1023-1044. http://academic.oup.com/joeg/advance-article-pdf/doi/10.1093/jeg/lbx016/18541410/lbx016.pdf

Sharma, P., Phanden, R. K., & Baser, V. (2012). Analysis of site selection based on factors rating. International journal of emerging trends in engineering and development, 6(2), 616-622. http://www.rspublication.com/ijeted/ijeted_index.htm

Wainwright, G. (2016, July 3). GCSE Choosing a location. YouTube. https://www.youtube.com/watch?v=vxraQGnKPZw&t=57s