5 ways that Location can affect Business Success

April 3, 2014 1:36 pm

 

Kirkby town centre projection.

 

 

Here we consider five ways in which the location of commercial property can affect business success. Do any of these factors apply to you and your business?

Employees

The link between commercial property location and employees can be critical. If you’re looking to attract a fantastic and high quality workforce, think about the location and its surrounding areas. Having the right location can sway prospective employees one way or another. Be sure to check for public transport routes for those who will be coming in via bus or train. For those who will be driving, make sure there’s adequate parking, preferably within close proximity to their place of work. An added plus would be local amenities, whether that’s a newsagents or gym/sports facility nearby; a great way to start your day can be with a morning workout!

Customers

Close customers could be your best customers, so choose location wisely to suit their needs. You want to have the best access possible to your market. If your business is B2B then cultivating long-term relationships will be central to your marketing strategy. That could mean lots of face-to-face meetings. Make sure you maximise the opportunity to stay close to them, and be able to react quickly to issues and challenges and this requires deploying physical resources. Remember too that first impressions last, so consider what your property or location says about your business and the industry sector it’s in.

Suppliers

Depending on your business, suppliers could influence your location. It’s important to know where your suppliers are located and their accessibility. Obviously price and quality are pre-requisites in choosing a supplier, but what about the speed of delivery? Location can address this – the closer you are to your suppliers, the quicker your product can be on the market. Other considerations can be the ease of customer service, and the ability to speak to someone face-to-face at any given time. Finally, one of the most important and essentially practical reasons to have local suppliers will be to support local businesses which in turn grow the local economy.

Finance – Funding, Rates, Rents, Labour Costs and Transport

It’s important to be aware of business rates, local pay rates and land and property rents prior to choosing a location. You may be entitled to a reduction in business rates for a limited period, grant or loan assistance for specific investment or capital projects. Understand what you’re entitled to and what you will be required to pay for the property you want and to employ your workforce. Consider everything – you may see a rent cheaper in another location but that doesn’t necessarily make it ‘cheaper’. Some areas will have government incentives and offer funding for businesses in certain industry sectors that may be relevant to you. Research well and take advantage of what’s available.

Competitors

It doesn’t always follow that you should be located away from competitors. Run a competitor analysis before choosing your ideal location. If you’re business that has a competitive advantage offering the lowest price, then choosing a location near your competitor could prove beneficial. You can ‘piggyback’ on their marketing and existing trade. Equally, sector clustering and agglomeration economies benefit by building a local pool of specialist talent suited to the industry, and they encourage sector-specific suppliers to set up nearby.

 

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