When starting a business, the location should be among your top priorities, because the success of any business depends on its location.
Experts confirm that majority of Nigerian entrepreneurs do not achieve their expected goals in terms of profit because of wrong location of business. So, these are things to consider when choosing a business location.
- Type of Business
You have to put the type of business you are setting up into consideration before you choose a location. The type of location that works for a manufacturing business might not work for a service oriented business.
Researchers maintain that manufacturing business located near supply source of raw material is bound to succeed, while on the other hand a service business can only succeed if located near the consumers.
This has to do with the ease customers get in contact with the business. This could be the road condition or pattern, nearness to the major routes, or the consideration of immediate environment.
Parking space, visibility for easy identification of business premises, traffic flow etc consider a situation where a customer spends up to an hour to get to your business premises, when 15 minutes can get him to your competitors business place to conduct similar transaction, as it happen in most Nigerian cities. Such a customer can only return to do business with you on special or personal grounds.
- Proximity to Customers
A restaurant located near offices, companies, factories markets etc has more success potential, than similar business located in residential areas.
Therefore, when you are thinking business, think a location that suits your target audience.
- Availability of Utilities
Availability of basic infrastructure can affect your choice of small business location. Amenities and infrastructure such as water supply, power supply, good road network and security are things to consider when locating your business.
These days, utilities such as internet services etc. are very significant for the success of a business. Most customers patronize businesses mainly to utilize their utility facilities such as the Wifi.
There are certainly other companies or individuals, who are already in business before you. Thus, if you wish to get a good portion of the market share, you need to locate your business a bit distance away from those fore runners, else they will present stiff competition to you.
However, there are some businesses you have to site close to competitors, though you will face fierce competition. Example of such businesses is restaurants and college canteens usually concentrated in a particular area.
- Availability of raw materials
If you intend running a manufacturing or production business, then the nearness or availability of raw materials is a factor you must not joke with when choosing your business location. If your business is not sited close to these raw materials, then sourcing and transportation will reduce your profit margin.
- Industrial Clusters / areas
Some entrepreneurs may decide to site their business in industrial areas or clusters due to the infrastructure and amenities already on ground. Industrial areas are areas mapped out specifically for commercial purposes especially manufacturing firms.