http://www.startup-naija..com/2013/09/determining-business-location.html

A major problem facing a start-up business is how to choose a good location. You will
recall that we have the proprietor, the partnership and limited company. Also we have the
retailer, the wholesaler and the manufacturer. All of these businesses face locational
problems. The location of a business is largely influenced by a host of factors ranging
from personal to economic factors. Another problem also is to adapt facilities to the
specific needs of a business in terms of layout.
We shall now discuss general factors in selecting a location.

Personal Factors
One of the most important factors in choosing the location of a business is the personal
values of the entrepreneur. The personal values of the entrepreneur may not have
anything to do with economics or profitability. An entrepreneur may decide to locate a
business in a rural area just for the joy of it. Again, an entrepreneur may decide to locate
a business right in his or her village just to provide jobs for his or her immediate relations.
These are the things which we may regard as personal to the entrepreneur.

Economics And Competition
Every area, district or location has its own economic base. And the economic base of an
area depends on the total population, the workforce, total family income, deposits etc. All
these determine the purchasing power. Obviously then, the entrepreneur in choosing
where to locate will consider the economic base of the area. Areas with strong economic
base will obviously have strong purchasing power which will in turn translate to sales for
established business.
Again competition is a very important factor. The shape of competition is critical. When
competition is healthy, it leads to increased sales for participants. For example retail
shops located in a shopping plaza are likely to do better than a lonely shop located in an
obscure part of the town. In business certain types of businesses seem to be located at
particular areas. In Onitsha for example, major electronics dealers are located on Iweka
Road. Any electronics dealer who does not have a shop on Iweka Road is not likely to be
successful. Even in far away Britain, good surgeons usually are found on Harley Street.
Also good tailors in London are located on Saville Row.
An entrepreneur therefore wishing to locate his or her business will therefore consider
such things as the economic base of an area and also the locational pattern of existing
businesses. Even in Lagos, businesses have locational patterns. Oke-Arin market is
popular for Cosmetics, wine and provisions. Balogun market is known for textiles and
dresses.
What we have just done is to provide a general overview of factors that determine where
the entrepreneur will locate his/her business. We will now go further to discuss specific
factors in selecting a location.

Specific Factors in Selecting a Location.
We just discussed general factors that determine where an entrepreneur will locate his or
her business. We shall now go ahead to discuss more specific factors that guide the
entrepreneur in selecting a location.
Choosing Retail Locations
Retail stores are unique in their own way. This is because the small retail store is run by a
sole proprietor. Retail stores are supposed to be very friendly and provide more personal
service unlike the large supermarket chains. In a rural setting, the simple retail store is
usually located right in the middle of the community. For example in the village market
square, provision stores, food stores and small restaurants can be found there. The reason
is that the village market is a very important place that attracts both the old and young.
And most importantly, decisions concerning the community are usually taken in the
village market square. The rural retail store is usually important to a community because
it brings goods to the population in the rural areas. It saves people the problem of
traveling long distances to the city to buy goods.
Also retail stores in the rural areas will tend to locate near the local primary and
secondary schools to cater for the needs of students who may need to buy biscuits, water,
pencils, exercise books etc.
However in an urban setting, choosing a retail location will involve a lot of other
considerations. Firstly, the retail store usually locates to where the population exists. The
driving force is population density. In a crowded area, retail stores are likely to do well
because they will receive patronage. Take Lagos as an example. Retail shops are located
in Ajegunle, Oshodi, Lawanson, and Ojuelegba because of the high population densities.
Another consideration in determining a retail location in an urban setting is the stage of
development of an area. Again let us look at the development in Lagos. Development of
Lekki and Ajah present new business opportunities. As people move towards Lekki and
Ajah, so also will the stores follow them. Apart from the small retail store, large
shopping complexes are springing up in the two areas. It is therefore desirable for
entrepreneurs to consider locating in the shopping centres or complexes because most
people now prefer convenient shopping centres where they will do their shopping.
Shopping centres attract a lot of traffic and the entrepreneur should be fully aware of that
fact.

Choosing Wholesale Locations
We have just discussed the retail store. We will now discuss how to choose wholesale
locations. Most wholesalers are former retailers who having grown through their
profitability now want to provide wholesale services to the retailers. The critical factors
to be considered in locating a wholesale location are warehousing costs and rents. A
warehouse must be spacious enough to accommodate sufficient goods for distribution to
the retailers. There should be space enough to accommodate the various vehicles and
delivery trucks that will both deliver goods to the warehouse and also collect goods from
the warehouse. In most cases, retailers are fully aware of the location of the wholesaler
and they go there to make their normal small purchases. In the wholesale distribution of
beer for example, the wholesaler chooses his or her location not based on nearness to the
drinkers of beer but based on the convenience of a location. A wholesale depot for beer
should be spacious and the rent also attractive. In the sale and distribution of drugs, you
will observe that most wholesalers locate where they choose and then use their
distribution vans to supply the various pharmacy shops that patronize them.

Choosing Service Locations
All along, we have been discussing physical goods which we can see with our two eyes.
We shall now discuss the choosing of service locations. The most critical factor in
location is the type of service a business offers. Take for example the business of
banking.
Banks locate very close to where their customers are or better still where they think that
they will get business. Today Victoria Island in Lagos is full of banks. This is because
the rich and their business have moved over to Victoria Island. Also banks locate close to
the markets. And that explains why in Onitsha most banks are located on the New
Market Road. This is because they want to locate close to the Onitsha Main Market
which is a very big source of deposits and business.
If a business requires that the clients must come to the location to receive service e.g. sale
& purchase of shares, then the location should be accessible. Again it should be located
in the financial district where banks, insurance companies etc are located.
A laundry and dry cleaning service business ideally should be located close to the
customers who patronize it. However closeness to the customer is not the only guiding
factor here. A dry cleaning service centre that has an excellent reputation for quality can
locate any where since customers will come and look for it. A barber shop should locate
near the people or near theatres and shopping complexes.

Choosing Manufacturing Locations
We have discussed choosing retail locations. We also discussed choosing wholesale
locations and service locations. We shall now discuss choosing manufacturing locations.
The major problem facing the entrepreneur is that once he or she has built a
manufacturing plant at a particular location, the cost of dismantling and relocating it to
another location can be expensive. In finance once a project has been undertaken, we say
that a capital budgeting decision has been taken. In most cases, the action is usually
irreversible. Because of the cost of setting up manufacturing factories, entrepreneurs
must be very careful as they locate their plants.
We will now discuss some of the factors that influence the choice of manufacturing.

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locations.

Thinking of changing our show room from Wuye to somewhere else in Abuja.. we are into sales and supply of 3D wall panel, wall paper, window blind, wall frame, and a lot more. I'd like your idea on the best area to choose. Thanks

INTRODUCTION
The location of a new business is of great importance to its success. One of the vital considerations as far as businesses is concerned is that the business should have easy access to all its customers while customers too must have convenient access to the business. Quite often, people locate their businesses on the basis of personal preferences. Ideally, location should be considered in terms of nearness to markets, availability of raw materials, effective cost, labour availability of the required types, labour costs, transport facilities, local bye-laws, housing and social facilities, possibility of expansion, supply of power and fuel, nearness to firms in similar fields, favourable natural conditions, influence of the Government Policy and prevailing competition. These could be evaluated on the basis of the town or city of the area within the town or city and the specific site within the area.
https://businessplanhub.com.ng/how-to-get-the-best-business-location/