Business location Flashcards
What are the factors that need to be considers when choosing a location?
Costs
Infrastructure
The market
Technology
Qualitative factors
How does cost affect location?
Costs will include the costs of buying or renting premise as well as business rates
Costs will vary based on whether the location is:
Town, city or village
Urban or rural
Central or on the outskirts
Prestigious or deprived area
A new business will have to consider its target market and weigh this up against budgets
How does infrastructure affect location?
Infrastructure will include transport links such as roads, railways and airports
It also include communication links and local services e.g. street lights and refuge collection
Small businesses will need access to the above in order to provide their good or service
If customers find it difficult to access a firm they will go elsewhere
How does the market affect location?
Many service sector businesses must be in an area where there is large footfall
Restaurants, salons and newsagents need to be in areas where the customers are
If the small business is a supplier to a larger firm it will wish to be as close to that business as possible
How does technology affect location?
This includes forms of communication and information provision through such mediums as the personal computer, the Internet, fax and mobile phones
New technology has allowed the small business to communicate from home, gathering, processing and sending information through, for example, the Internet
How does qualitative factors affect location?
These factors are based on the personal desires and needs of the owner
They are very important for the small business, but their significance will depend upon the owner of the business
The quality of life and lifestyle of the owner is likely to be fundamental to a location decision
