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8 Tips To Choose The Best Location For Your Business

Virtual top-up (VTU) Business in Nigeria

Business has increasingly become the pillar of any society. From the buying and selling of goods and services to the production of the same, business is the soul of any economy. On the other hand, it is one thing to start a business, another to critically consider the location of the business. To a large extent, the success or failure of any business is determined by its location. It is true that some businesses can travel very well in certain locations compared to others. As such, it is very important to have your business located in the best spot or environment. If you want to start a business and you need help with choosing the location, read this post to grasp eight tips on choosing the best location for your business.

Do a Needs Survey

A need or market survey is necessary to determine whether or not the people in the chosen location have a need for the product or service your company intends to provide. You cannot run a business if your products or services are not in demand or thought to be beneficial. Also, need assessment is most effective when there is a clear understanding of the current need gap; otherwise, you will be satisfying the incorrect demand and your firm will suffer. One of the most important factors to consider before launching a business in any area is to understand the needs of the market in which you may choose to locate it. Acceptance of your goods and services indicates a great business location. The exchange of commodities and services is at the heart of business. However, if there isn’t a market where you can exchange your things for money, you will need to find another spot.

What existing principles and values surround your business?

Before establishing your business in any location, you need to watch out for both the green and red flags. One of them is the governmental, cultural, and ethical values and laws domiciled in the location you want to do business in. Does the predominant culture or values permit them to patronize your business? In other words, does it permit them to consume your goods or services? Are there any religious restrictions on the use of your goods or services? Imagine situating a beer parlor business in a core Christian concentrated environment. That is the beginning of your failure, and the reason is simple: Christians are not permitted to drink alcohol.

Accessibility of the Location

Easy access to your business premises by potential customers must be considered. Situating a business in a water-locked location would not sound like a good idea. You might end up operating only during the dry season,  because the rainy days would have put you on the blacklist of many of your customers, as they would not have access to you. Infrastructures like good roads, electricity, and other facilities that might be peculiar to your business must be present to give you the best location for your business.

The distance between you and your source 

If you are into manufacturing goods for sale, one key factor that should determine your location is how far or close you are to raw materials. The cost of having raw materials delivered to you is also a function of the distance covered. When the cost is high, the price of your products will have to respond accordingly. When the price of your goods is high compared to competitors, a lack of patronage is inevitable, and this does not bode well for your business. Similarly, a merchandising business would have to factor in its source of supply when deciding on a location.

What segment of the population does my business target?

For instance, if your business appeals more to students, then the best location for you would be that which has a good presence of academic institutions. Assuming you are into the provision of laundry services, you cannot think of siting your business in a rural location where there is very little or no need for your services. Rather, you will find yourself in a befitting location in the urban environment, which is predominantly inhabited by professionals and people who often have no time to fix their clothes themselves.

Average living standards of the population

Before citing a business in any location, you need to cross-examine the general living standards of the people in that location. This is especially important for businesses that deal in luxury goods and services. Can they afford to patronize your business? If yes, then you may consider mounting your business structure there. If the opposite is the case, you may have to take a U-turn. Some indicators of the living standard of a locality include the predominant residential structures, infrastructures, and even the physical looks of individuals.

The literacy level of your target market

A high literacy level does not always imply attaining a university education. It also refers to the lack of tribalism, sentiments, and willingness to embrace your product or service in this context. Choosing a location where tribalism thrives as a location for your business could be the first step toward its eventual demise. Similarly, if your target market does not comprehend or find your product or service valuable due to ignorance or economic circumstances, that is enough of an issue. It may force you to spend a significant amount of money on orientation and sensitization, which could harm your new business.

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Location cost

Most small scale entrepreneurs would prefer to start a business in an area where they have to rent an existing structure for use. You have to be sure that the cost of rent in that location can be conveniently renewed. It is important to avoid being sent packing at the expiration of the last rental.

In conclusion, starting a business is a good idea. Another is to locate your business in a favorable environment. Some tips have been given for your consideration, when choosing your business location

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