For any business trying to maximize profit, the location is quite crucial. The wrong choice can result to considerable reduced income if the location turns out to be unfriendly to business. Factors such as stiff competition, high labor costs, lack of government incentives, and poor communication systems, can be the bane of any business, however potentially profitable.
Although manufacturing companies continue to prefer to be close to sources of raw materials as well as transportation systems and markets, other industries will have to consider being near the center of population to be assured of a profitable business activity. This is especially so in service businesses where the absence of a target and patronizing market can spell disaster. There will also be a need to consider if the location will fit the image which the business wants to create.
In determining whether a certain business area is friendly, it may be advantageous to make use of the services of a professional adviser whenever possible just to be clear on support programs provided by the government and the community. Another way of determining exactly what a business can expect while in actual operation is to conduct research by talking with existing businesses in the area. They, more than anybody else can provide a new business an idea of how it is to operate in the desired location.
The Internet has made it easier for businesses to operate even without a physical store or office. The possibility of providing services remotely opened up business opportunities that are no longer tied up to the need to be close to the population. It is now possible to choose a business location where labor cost is a lot lower thus the rise of outsourcing jobs to other countries. However, reliable communication remains a must for businesses so as not to disrupt operation in spite of distance.
Originally posted on August 27, 2012 @ 9:54 am