To select the location of your business is as important as other aspects like product quality, effective marketing etc. A bad choice will hamper your finances. It will affect your sales too. Read on to know in full:
- Nature of your business: The location of a business depends on whether you are running a factory or showroom type business. Normally the manufacturing unit has to adhere to legal restrictions. Hence starting them in the middle of the city or in a residential area is not advisable. Subsequently any litigations due to emissions, pollutants etc. would arise. Hence locate the manufacturing unit in outskirts. Make sure it is not too far away or in an isolated area. There are safety concerns. Reachability is an important factor for the employees unless you provide them with transportation. For a showroom type business where your customers would frequently come and go, it is ideal to be in heart of city. If you cannot shell out a high rent, it is advisable to start the business at least in an area which is reachable to all.
- Availability of resources: If your business is dependent hugely on resources like coal or hydel power, you can start the manufacturing unit near the coal mine of power projects. If your business is dependent on any critical stage of raw material it is ideal to locate it near the source of raw material. For example, sugar mills dependent on sugar cane can be located near areas which are cultivating sugarcane. This will ensure that the sugarcanes remain moist and the maximum pulp can be extracted out of them. This will ensure more profit like using Qprofit system. Click here now to know more.
- 3. Climate: If your business can thrive well based on climatic condition, it is more cost effective to start the business in such geographies. Creating artificial humidity or moisture can be much costlier. For example, textile mills can perform better in places with humidity. It helps in naturally processing the yarns.
- 4. Group benefits: When you start your business amidst similar industries you tend to get common benefits like infrastructure, power concessions, waste treatment plant etc.
- Situational advantage: Sometimes being the only business is an advantage. For example, in a job-deprived area where there is plenty of unemployed youth, you can easily get cheap labor resources. Sometimes when you are running the only cloth shop in an area, you naturally get good business.