Location of your business: How much does it matter?

You must have given a lot of thought about your business idea, finances and what kind of people to hire. Have you ever thought about the location of your business? Which city, which locality will best suit the needs of your business?

In this age of IT revolution, location might not matter much to the businesses who operate virtually but is critical for restaurants, retailers and even many service businesses. For a retailer the key to his success will be an area which will attract more consumer traffic. For a manufacturer it is necessary to be near his suppliers and also in an area where modern modes of transport are available.

Several plus and minus points have to be considered while choosing a location, priorities have to be set and finances have to be taken into consideration. Tax, cost or rent, security, availability, infrastructure and personal consideration are some of the important points in the checklist that an entrepreneur should not forget.

Location is one of the major criterions for choosing a location for a restaurant, says the Ankur Shukla of Punjabi by Nature, a chain of famous restaurants in Delhi. For an eatery the entire business revolves around people coming to your place. If you haven’t chosen the right place, customers might not come in and your business will be a flop.

While searching a location for a retail outlet one should be fully aware about their customers. If the product is targeted at the lower middle class one cannot open a store in a posh area or vice-versa. Famous retail outlet, The Loot clearly defines the geographies for their presence. They intend to have outlets in state capitals, cities connected with airport and even tier 1, tier 2 & tier 3. They see their potential customer their and also the connectivity of the place to ensure steady supply.

“Minimum space should be that can cater to high end clientele. The location of your business need not be in a prime area but according to the product you are offering. Minimum investment for infrastructure should be made and the investment should be in proportion to the profit that you will make on the product you are offering. Apart from the location there should be proper arrangement of equipment & interiors,” said Mr Siddharth Shankar, Director, Mystic Cures Ltd, which operates in Delhi and NCR in areas like Mehrauli and Punjabi Bagh.

Do not rush into choosing a location for your business or do not consider it secondary. Location is vital to your success.