Location FactorsBUSINESS PLAN

GENERAL FACTORS WHEN CHOOSING A LOCATION

Labour

Transport

Geographics

Economics

Market

Competition

LABOUR

Some businesses need large numbers of labourers or labourers with a specific skill- the business has to be where adequate labour or skill are located.

TRANSPORT

Because transport costs are so high, it is better for some goods to be located close to where they will be sold.

For example: bricks are quite heavy to transport which means that they need to be produced close to the market where they will be sold.

GEOGRAPHICS

Some goods and services must be located close to where they are needed.

For example: a surf shop should be close to the beach

ECONOMICS

The purchasing power of the community

determines whether they will be able to afford your goods

and services.

MARKET

Consider whether there is a need or a demand for your goods and services.

COMPETITION

Consider whether there are other businesses in close proximity to you, who provide similar goods and services to yours.

This can be a positive or a negative factor.