1. 1.31.3 Business location

2. 1.3 Business location The importance of location Location can be:  critically important  quite important  unimportant Why is there a difference?

3. 1.3 Business location Factors which influence choice of location  Labour – cost and skills  Cost of premises  Financial assistance and local government charges (ie business rates)  Transport links (for supplies/distribution)  The need to be near customers  History and tradition  Sales techniques (phone/internet/mail order)

4. 1.3 Business location Factors which influence the importance of location  The business activity  The number/location of competitors  Reliance on personal visits by customers  The methods used to contact customers  Reliance on local supplies  Reliance on specialised labour skills

5. 1.3 Business location Positive effects of good location on business operations  Additional sales opportunities (through passing trade, faster responsiveness) = increased income  Lower total costs of running the business (rent, rates, wages and salaries, transport etc) = reduced costs = HIGHER PROFITS

6. 1.3 Business location Relocating = moving May be necessary if key factors change, eg  New shopping centre opens and competitors relocate  New motorway opens and diverts trade/provides new opportunities  Methods of contacting customers change (from personal visits to mail order or Internet)  New methods of production changes reliance on suppliers  Costs increase on existing premises/alternatives would save money

7. 1.3 Business location Assessing location If so:  Is it appropriate?  What are the specific benefits?  Where are competitors located – and does it matter?  What are the costs?  What are the alternatives?  What would be the costs/benefits of relocating? First question – does location matter to this business?

8. 1.3 Business location Summary  Location matters more to some businesses than others  Various factors influence location – identify those which apply  Could there be greater benefits in relocating?  Important to identify the changes that could affect location in the future – if any.