Seven Reasons Why Location Is Important in Business

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Location is crucial to any business’s success and growth. The ideal location should minimize costs and maximize income. When looking for a site, determine your business needs, including whether you'll depend on foot traffic, require local or natural resources, and the zoning restrictions you might encounter.

The positioning of your business affects the price point you choose for your services or products, the brand voice tone you should adopt, and other factors. When well selected, the physical location of your business can enable you to appeal to your specific target market. This article outlines seven reasons why location is important for your business.

1. It determines your business’s accessibility

While the accessibility aspect differs based on your line of business, you want to ensure it's as convenient as it can be for your clients to visit you. If reaching your store is difficult, most customers won't come to you, and this may cause you to lose out on a notable number of prospects. Where your location is close to your target audience, they'll be more inclined to purchase from you for convenience and because of the confidence that you can efficiently deliver your offerings to them.

Being accessible by foot and vehicle can increase your business revenue depending on convenience. With the help of a well-experienced commercial tenant representative company like the Jeff Tabor Group, you can find a suitable location easily accessible to your customers and prospects.

2. It keeps you in check with your competition

Your proximity to competing businesses is usually a viable success measure that can make or break your brand. If you're looking for a considerable market share, your location should be where your business is the key supplier for the target market. In a place with a lot of competition, you may struggle for the few clients available. However, you wouldn't want to be far from your target market.
So, find a proper balance. Looking at your competitors' location can help you better understand your product or service demand in relation to your competition. Once you know where your competitors are, finding a place that enables you to build your own customer base becomes easier.

3. It impacts business rates

Before settling on a specific location, it's essential to understand the local business rates because you wouldn't want to be in an area where the operating expenses exceed the cash flow. Setting up a business in a high-traffic street or a popular mall can be more expensive than running a business in a small commercial area. If you're operating on a strict budget, consider an affordable location until your cash flow is sufficient enough to cater to the costs needed for high-traffic regions.

4. It affects the potential for growth

Location is a significant factor impacting your business’s potential for growth. A location suitable for business growth should be secure, close to where there's high demand for your products or services, and within your budget, and it shouldn't deter your recruiting efforts. Based on your objectives, ensure your location can accommodate growth and avoid moving premises because they’re time-consuming and can be a huge disruption.

5. It impacts your skill base

An excellent location is critical to the best talent acquisition for your business. For businesses that depend on a skilled workforce, an area rich in this talent would be ideal. Your location also determines your access to prospective employees. For instance, if your commercial space is out of town, your talent pool will be restricted to those who can drive or afford the means to get there daily. Nevertheless, potential employees can commute to work easily through public means if you're within a city or town.

6. It directs your pricing structure

Your location often dictates your business’s pricing strategy, primarily if you're in the retail industry. For example, if you're located in your city's affluent area where the rent rates may be high, you can charge more for your offerings. In contrast, if your company is in a run-down place with cheap rent rates, people won't buy if your products have a superior price tag. Location dictates how little or much more you can charge. Based on your expenditure, this can significantly affect your profit margins.

7. It affects brand visibility

While you may do everything else correctly, your business is bound to fail if prospective clients aren't aware that it exists. A company in a place with high vehicle and foot traffic will experience more success than those hidden in industrial parks and other hidden areas. If your business isn't close enough to the customer, seeing and accessing it might not be easy. Brand visibility is high for companies in high-traffic areas such as main roads or busy intersections.

Endnote

A good location is essential for the success of any business, so find one suitable for your business to improve its profits.