Two Approaches in Choosing a Location for Your Business

[Caramelle]

When choosing a location for a business, there are two distinct approaches that come to mind.

One approach advises setting up a business away from the competition. This enables the business to grow at its own pace and gain patronage from the immediate location. Businesses such as bakeries, grocery stores, and supermarkets will likely benefit from the monopoly-like conditions.

The other approach is setting up a business where the competitors are located. Wonder why clubs, restaurants, car shop supplies, and similar businesses choose to locate themselves in one district or area side by side with their competitors? One big reason is that they want to establish the location as the place to go for their products or services. These businesses seek to capitalize on each other’s strengths and advantages to drive customers to their location and increase their sales potential.​

What are your ideas regarding these two approaches?

 

[btaliat]

You are a good observant. But an intending business owner should be careful and be thoughtful while setting up a business. It is highly advisable to start a business first in the area where is no competition. This will allow the business to grow first and the business man will have his own customers.

Setting up a business in an area with many competitors is also good but majorly for existing business. This will enhance innovative and more creativity among the sellers of the same products.

One thing a business owner should know is that competition in business does not benefit the business owners but the costumers. That's why a business man who cares about his profit first should not even think of starting a business where there are heavy competition.

 

[Chibson]

Choosing a business location is one of the most crucial decisions that a business owner makes because it can determine whether your business will be successful in the long run or not. Like the first poster have said, this is a very good observation because there are some businesses that requires you to stay in a competitive environment for you to be able to succeed.
There are businesses that you need competition to be able to drive customers. You need to compete with people that have established their businesses in order to drive their customers, this can be seen in many places like market places and roadside car washers. Foryou to succeed in this kind of business you must have good business strategies in which you will use to drive a whole lot of customers and sales. You also need to be unique and bring out ideas that will make people see the difference between your business and other people's business.

Another kind of location is the monopolistic type of locatio. The truth is that every businessman is always looking for this kind of location because it will give you the opportunity to make a whole lot of money from your business without a lot of competition and marketing.

 

[Deleted member 28127]

The first thing you have to take into consideration while choosing a business is that there is no business without competitors. May in first years you did not care about your rank but when having business growing up day after day you will take into consideration the concurrence.

 

[Deleted member 13140]

Setting up a business away from the competition, I don't know about that, for me maybe it's not the right call, maybe what should be done is this, set it up where there is completion but find a strategy to beat the competition and when I say this, I mean by figuring out what there are doing wrong and what people actually complain about on their product and then improve that with yours, don't just set up your business where there is competition and hope people will come, figure out what your competitors are doing wrong and let it be your motto that you're doing it right.

 

[PICKFORD]

Sometimes you don't call for competition they just happen for example are in a case where you are the first marketer to occupy a space and someone who intend to sell the same product as yours opens his or her own business close to you selling the same product as yours in such a case you have to still remain calm and not to panic you have to be observant, smart and also alert there are various ways in which you can outsmart your competitors in business a good way is to increase your customer service a good customer service will keep the customers close and drawn to you but a bad one,another things to improve is the quality of your goods and service that you sell or offer good customers are drawn to entrepreneurs and businessmen who are loyal and who tell them good advice about the product that they are about to buy that is why it is advisable to be a loyal and truthful business man or woman, another way to outsmart your competitors is by developing in the branding packaging of your goods and services a lot of customers are drawn to buy packaged goods and services because of they have a shot weight size and measurements

 

[Deleted member 13140]

I wrote a thread about this, or did I reply to one, I don't actually remember but one thing is sure, your business location plays a significant role to your success, its either you set up your store on a popular areas where there is a lot of competition of you find a place where you'll be all alone, but note don't be scared of competition, all you have to do to beat it is to make sure you research and find out what your competitors are doing wrong and let that be your motto and people will come to you for that.

 

[Alexandoy]

You are lucky if you can find a good location for a business that is away from the competition. Some places I know in our country are the remote islands which need consumer goods like basic food items and household items as well. One island is reached by taking a boat ride of more than 1 hour with a costly fare. Almost all the goods are imported from the city that is why the prices are so high. A can of soda costs 50% higher then the price in the city. If you can do your business in that island and you have a better way of transports for the goods then you can pull down the price and beat all the competition. However, you have to take note that doing business by a stranger in a remote area is not a good idea. You may encounter the opposition of the population since you are considered an alien in their place.

 

[Immilash]

Picking a business area is quite possibly the most vital choices that an entrepreneur make since it can decide if your business will be fruitful over the long haul or not. Like the principal banner have said, this is an excellent perception since there are a few organizations that expects you to remain in a serious climate for you to have the option to succeed.
There are organizations that you really want contest to have the option to drive clients. You really want to contend with individuals that have laid out their organizations to drive their clients, this should be visible in many spots like commercial centers and side of the road vehicle washers. Foryou to prevail in this sort of business you should have great business systems in which you will use to drive a ton of clients and deals. You likewise should be remarkable and bring out thoughts that will have individuals see the effect between your business and others' business.

One more sort of area is the monopolistic kind of locatio. In all actuality each financial specialist is continuously searching for this sort of area since it will offer you the chance to make a ton of cash from your business without a ton of rivalry and marketing.

 

[funmi]

In the course of planning a business venture, one of the strategic factor that will determine the success of the business is the business location when we fail to get a good location it is most likely the business will not really succeed. Because I want to believe that the major aim of any business person is to maximize profit. So the only way we can maximize profit is to increase sales. In a situation where sales in not coming in then it is most likely the object of starting a business in the first instance will be forfeited.

Now on sighting location of a business we really need to consider a lot of factors but two of them stands unique amongst the pack. One of the major factor to put into consideration is the closeness to the raw material that will.be use for production, let's say some that wants to go into refining of crude oil, it will be best to sight such a company in the southern part of Nigeria rather going to the north due to the nearness to raw material.


Another factor will be nearness to the target market, this is very important because if the business unit is far away from it target client on will incure more expense on transportation

 

[TOZZIBLINKZ]

The location of your business sometimes determine the success rate of your business . In choosing location for your business I strongly believe that proper research about the area in mind do you intend to situate your business should be put into proper consideration . The taste and likes of the people inhabiting a particular area should be put into consideration as well . For example if your intention is to open a water bottling company in a particular area , proper and serious analyzation about the taste and preferences of people in the area should be done . possibly , you may come to find out that people in the area are not used to the drinking of bottle water but rather they get water from streams , lakes , and Rivers . So you're establishing of the water bottling company in that area could be at stake .

Business owners who intend to establish businesses , should also make sure that the area in which they plan to situate there business should have a high population rate especially if the business dealings is buying and selling . And so to meet estimated business profit the population of the people in the area should be considered .

 

[Rachael]

There are many approaches that should be adopted when choosing a location for our business. When setting up a business plan, it is important to mount the business in a strategic location. There are many people who had feasible business ideas yet the location was improper which makes the business static. Apart from the business idea and the capital for funding, the next important thing on the business plan is the location. I have seen many businesses go down the drench because of wrong location. Before deciding on a location, it should not be done haphazardly, there are businesses that would thrive more in rural areas and there are also ones that would thrive better in urban areas.

For instance, a charcoal business is most feasible when operated in rural areas. I have lived in the Southern part of my country and we are use to gas and stoves for cooking but during big events, we make use of fire woods, but when I traveled to the North, I realized a lot of homes were using charcoal to cook and it was not even based on who could afford or not, most houses made use of it and the business thrived. If such business is set up in urban areas, it would not thrive as it should.