3.2 Location of a Business

Question 1

Suppliers

Answer 1

A business will need to receive goods to sell to its customers. It is important to reduce transport cost, time to receive the item and chance that they will not be damaged. A fruit and vegetable shop will want to have good access from its farmers and the local markets.

Question 2

Complementary

Answer 2

This is when you have a good or service that supports or adds to another. An example is a food court where people will go because they will have a choice of food options. A business will choose this location as it will draw in more potential customres. Another example of complementary businesses will be car yards, as people will have a choice.

Question 3

Customers

Answer 3

A customer is the person who will buy the product or service from the business. A customer can be local, for a business like a sale that may have office workers. As a local business I can set up at Highpoint, have lots of customers but the rental costs are high. I can stup in a strip shop, where I can have lower rent but less customers.

Question 4

Overall Decision

Answer 4

A decision that the business owner needs to make it to balance the number of customers against the rental costs of the location.
However, if you specialize in something. Like a Scottish Butcher that makes Haggis then customers will travel to you, location is less important.
If you have a majority of your sales online then it is more important to locate near a post office so that you can send your items to your customers. Your online location is important as your customers need to find you.