Do you think location does not matter in business?
As far as business is concerned, the location you site your business has the potential to kill or build your business.
Your location is the place or physical address that your company is situated.
When customers want to patronise you or they have any complaints, this is where they come.
As an entrepreneur, questions about the location of your business have surely crossed your mind. Does my location affect my business? If it does, how?
Most people do not understand the important role location plays in business. In this article, 5 reasons why your business location matters will be discussed.
Location Affects Accessibility
Say for example, we have two stores that sell the same products, Store A and Store B.
The two stores sell amazing quality of products and have almost the same customer service; but Store A records way more sales than Store B.
How is that possible you might ask? Store A is located 20 minutes from the center of the town while Store B is about an hour drive away. Store A was more accessible.
As the above scenario shows, it does not matter what kind of products that you sell, as long as you are not accessible, it would be very difficult to grow and make sales.
People today would rather buy from the nearest store to them especially if you sell the same quality of products.
While it is not possible to be at the doorstep of each customer, it is important that the customers can easily access you, either when they want to make a purchase or when they want to make a complaint. You can only afford not to be accessible when you are the only choice your customers have.
Location Affects Visibility
Who do think will have greater exposure between these two stores? Store A is very visible from the main roads or major junctions while Store B is between two houses at the end of the street. Definitely store A. We say Store A because during high traffic hours of the day, Store A gets more exposure.
When the location of a business is visible, it makes the business stand out without much effort. The branding of your business can also be greatly improved because of this exposure.
Location Affects Target Market
How good will it do to open a car dealership in an area that doesn’t have good roads?
Or Opening a barbing salon in an area that is predominantly occupied by women?
Or selling sanitary pads in a community that is predominantly occupied by the male gender?
The answers to those questions are obvious.
Locating your business in an area that is not near your target market is like killing your business before you even start. So if you want your business to boom, you need to carry out a research to understand where your target market is and locate your business nearest to that area.
Location Affects the Pricing of Products
Ever wondered why a product you bought, costs more than the one your friend bought? Location has an effect on it. Setting up your business in some locations, mean that your products are bound to be more expensive. What makes this happen?
The type of people living in the area where your business is can have an effect on the price. Prices of products in an area where almost everyone is clearly wealthy is going to be higher than those in areas where they are not wealthy as so.
The cost of rent in the area also affects the price greatly. Someone who spends about 30 per cent of his earnings on rent will put a higher price tag on his products than someone who spends just about 10 per cent of his earning.
Location Affects the Workforce
In case you are not aware, your location affects the type and quality of your workforce.
Is your location one that is very accommodating?
Study has shown that people consider nearness to family and friends than the salaries they would collect when considering a new job.
Since you cannot have everybody of your choice move from their current location, to where your business is, you certainly need to make use of the local talent.
These ones are the ones that don’t have to move a lot, as they are already in the area where your business is.
If you want your business to boom, location surely is an important factor to consider
If you are just about to set up a business, research well before choosing a location, so that you can kick off your business on the front foot.