Why Location is a Big Factor in Business Success

Despite the increasing pace of online presence, there will always be a requirement for a bricks-and-mortar presence. As a business owner, you need to consider many factors when selecting a location for yours.
Why Location Is A Big Factor In Business Success
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Why is location the most important aspect of any business? Originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.

See Choosing a location for a new business is one of the most important decisions entrepreneurs make during the planning phase of launching ventures. The location of a business can affect many aspects of how it operates, such as total sales and how costly it is to run.

This will make it clear further:


Location is of utmost importance to businesses that sell goods or services directly to customers at brick-and-mortar establishments. For example, a card shop located in a popular mall is likely to attract more customers than a similar shop located in a run-down part of town. Location can also influence a business’s ability to market itself. A business with a storefront on a busy street is more likely to attract customers with signs and storefront displays than a business that is not in a busy area.


A business’s location can affect the competition it faces from businesses that sell similar products and services. For instance, an upscale neighborhood in a major city might have dozens of ethnic food restaurants, while a small town might not have any businesses that sell ethnic food. Starting a business in an area with few direct competitors can increase the likelihood of attracting customers.

Operating Expenses

The location of a business can influence the total cost of operation. Renting a storefront on a popular street or in a highly trafficked mall is likely to be more expensive than opening a store in a small commercial district in a residential area. A business could be better off opening its doors in an area that is cheap, even if it results in fewer total sales.

Taxes and Regulations

The location of a business determines the state and local taxes that owners have to pay and the regulations they must follow. Income tax and sales tax rates vary from one area to another, which can have a significant impact on a business owner’s earnings. Government zoning laws can limit the size and construction specifications of buildings and the use of signs. State and local laws can also affect the types of permits and licenses necessary to operate a business.

Home Businesses

Home-based businesses offer a variety of advantages over companies located away from the home, which can make them attractive to small-scale business owners. The cost of operating a home-based business is typically lower than paying to rent retail space or office space in other locations. Home offices can cut down on travel costs and make it easier for owners to balance work with home life. The cost of operating a home office is also tax deductible.

Contributed by Akash AgarwalEntrepreneur at Business

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