Now that you are developing your business plan….let’s discuss the important of location when business planning. Discuss with your classmates the key attributes of a good business location. Which of these would probably be most important to your business (based on your business plan)? Why?
Is the hometown of the business owner likely to be a good location? Is it logical for an owner to allow personal preferences to influence a decision about business location? Finally, what factors should an entrepreneur evaluate when considering a home-based business? Be specific.
2.) respond to two student posts below
The key factors that contribute to a good business location, according to class lectures, are:
- Customer Accessibility/Customer Convenience
- Business Environment Conditions
- Availability of Resources
- Personal Preference of the Entrepreneur
Out of these four, the most important is customer accessibility/customer convenience based on my business. We live in a fast-moving world where people want the fastest, most convenient way to get information, get in and get out. The easier and faster it is for people to find you and be accessible, the more business you’ll have. The bottom line in the business world is that consumers are demanding convenience, and if your business isn’t covientant enough to meet their needs and meet them how they want, they will find another one, and that may be your competitor. Selecting a good location is the first step to determining the success of convenience. Most people want to do business with you if it’s easy and safe. Selecting a location that does this is a great business plan. The more convenient and accessible, the more people will be drawn to come, which means more business! The other key factor that would be important is the availability of resources. My business is running an athletic training business. With this, I will need to provide well-developed training and equipment to draw people in and make the business flourish. Without resources readily available, it will create a place where people feel they can be trained or workout in. Having resources available will grow the business and catch the eye of consumers, which will grow the business!
The hometown of the business owner has advantages and disadvantages. There are low start-up and overhead costs. Family and friends are readily available to help out the business, support, and spread the word of the business. When a business is started in your hometown, connections are already made, and you are comfortable with the area around the business, which helps when starting a business. Disadvantages being business image is difficult to maintain in a home environment. It’s hard to come across as a professional business. There could also be many legal issues to take into consideration for many places that don’t allow home-based businesses. Another disadvantage is it could cause family and business conflicts. While the hometown of a business is not the worst idea, it’s definitely recommended to venture out!
Personal preference isn’t horrible when looking at the location of the business, but it shouldn’t be the only thing influencing the location decision. Just because family is close and the community is supportive doesn’t mean that the business is going to flourish or make enough money to live stable. If the hometown in which you live isn’t highly populated or even a good place for a business, then starting one there just because you want to will not perform well.
When considering a home-based business, there are financial and family lifestyle things to consider. Figuring out what your business needs to flourish and make sure you are financially set to start a home-based business. Family lifestyle is also something to look at because distractions can form, which causes less productivity and less tasks completed.
The key factors of a good business location that help with the selection of the location:
- Customer Accessibility
- Business Environment Conditions
- Site Availability and Costs
- Resource Availability
- Entrepreneur’s Personal Preference
Of these five, the most important for my business plan would be Customer Accessibility, Resource Availability, and Entrepreneur’s Personal Preference. Accessibility is important, how easy it is for customers to find you and get to you, the more customers you will have. Whether I am brick-and-mortar or online, I need to make sure my customers can access my business. The more accessible, the business I will get. Having resources not only is important to provide supplies, but resources also bring in more customers. Resources brings in more business and high traffic areas and other business that my business would need to partner with. The more resources available, the more people, and more business. The last factor would be Entrepreneur’s Personal Preference. According to the textbook, over 47% of all entrepreneurs’ start their business a five-minute drive from their home (Longenecker et al., p. 235). My preference would be in the county I live because of the local markets that I will target for business. I wouldn’t just stay in the city. My business is a 24-hour all access mobile notary. I would need to venture the more of the county. That includes jail and prison service. I am cleared by DOJ and FBI so I can go into the Federal prisons, State, and County facilities. Not everyone can do that.
Other factors that also play an important role in the decision process are as follows:
- Neighborhood mix: Who’s next door?
- Security and safety: How safe is the neighborhood?
- Services: Does the city provide trash pickup, for example?
- Past tenants’ fate: What happened to prior business in same location?
- Location’s life-cycle stage: Is the are developing, stagnant, or in decline?
Of these, the most important would-be Security and safety. Being a mobile notary, security and safety is important especially in the middle of the night. Having your business in your hometown has its advantages. The owner is going to feel comfortable about opening the business and reaching out. The person may find it easier to get financed at the local bank from their long-time banker. The person more than likely already has many personal connections throughout the community that will support them in their new business venture. Family and friends are already their best customers, and they will buy and share their experience with others to help market the business free of charge.
I think it is more than just personal preference that influences the decision. They may prefer to be in their hometown, and close to the babysitter but if there is no money to be made then there is no business. I think there are more factors to consider not just personal preference.
Factors when considering a home-based business are financial considerations and family lifestyle considerations. For a small business owner just starting off might just need some office supplies, a computer, and the internet to get started. Pretty basic home office. The family lifestyle and having a family business so the family and share in the operation of the business.