Location is a huge factor in the success of a business. Say you were to open a grocery store. You have to look at the distance people are willing to travel from their homes to reach a grocery store. This will change based on the type of community (urban, rural, etc.) Say that distance is one mile. In that case you would not want to put your business too close to another grocery store because you would have a radius that contained many of the same customers, hurting both of you. Ideally, in this case, you would be able to place your business exactly two miles away from the other grocery store so you do not have to split potential clients with another business.
Hi Startup Nation.
I was wondering what sort of decisions potential business owners go through in deciding where to set up shop. I'm thinking location is one of those objective aspects that can really make or break a business, so I was curious as to what kind of market research entrepreneurs do (or don't do). Do business owners typically just leave that area of expertise to the commercial real estate agent? Do many business owners even go through agents?
Location pretty much affect on how your business works. Well for one thing the location must be in the middle of a crowded area or street.
Have you ever seen that new reality show Bar Rescue on Spike TV?
The guy that consults the struggling businesses always does a complete mapping and demographic of the entire community around the struggling businesses he is trying to help.
Always remember when you are talking about location your not only talking about physical attributes but you are talking about personal preferences.
Demographics are huge part of location and are often overlooked.