Strategies for selecting a business location

Focus of the week- Business
Topic- Strategies for selecting a business location.
Writer- Iyere Joy

Entrepreneurial strategies for selecting a business environment must be carefully adopted to enhance business success. The most common and available strategies are as follows

Study the utilization of existing resources- There are certain factors or resources that are available in an environment which the business can take advantage of. They are often referred to a infrastructure. They are very expensive to establish by the business. Where they are in existence they could be taken advantage of.
Innovating- There are new ways of doing business. A business could be located in an environment where it can take advantage of a new system of business operation especially where modern technology is available.

Study the existing industries- Examine inputs and output of existing industries. For example, corn or cassava flour for bread and biscuits. The entrepreneur should examine their output and the rates of turnover. The businesses need to examine their strength, weakness, threats and opportunities available in the industries.

Examine the product to product- Examine to know if the product is serving a presently unserved need in a particular environment. Determine the extent of the unserved need. Do those who cannot have or enjoy the existing product constitute a high percentage of the prospective customers where the demand exceeds the supply, a business can easily be located in the environment.

Special feature of the product- A product or business could be located in an environment where it could enjoy patronage because of a peculiar characteristic. Where such a special feature is predominantly a determinant of the demand for the product, the business could take advantage of the environment.

Analyze the demography of the environment- Population trend and distribution can give a business an edge. Depending on the intended product, the business can analyze the age, sex, and educational distribution of the population. For example, if the population is more of children and children product are produced in that environment, the business could be located in that environment; the business could be located because of the anticipated demand

Study the development trend in the environment- The entrepreneur should study and consult with the development agencies to be acquainted with the changes in policies, like ban on some imported items.

Analyze both national and foreign environment- Market trend, social environment, economic environment, legal and natural environment of the nation and foreign aspect of doing business can help a business. Parameters in these environment life style of the people, investment priority, urbanization of growth centers, pattern of household spending, export and import quotas, financial assistance and government interventionist or non interventionist policies