Location Assessment Of A Business Essay

1367 words - 5 pages

Location Assessment of a Business

The success or failure of a business frequently depends on its
location. The right location will increase the chance of a business
succeeding. The wrong location could increase the chances of a
business failing. The main factors that influence the location of a


A business needing a highly skilled workforce need to be in an area
which is in relation with industry, or one with a local training
facilities which would provide the skills needed. A business looking
for mainly unskilled, cheap labour looks for an area with a plentiful


The amount and cost of land clearly depends on the business's choice
of location, but so do things such as the nature of land. Businesses
like oil refilling and superstores need large, flat sites, which can
bear heavy loads and have a lot of open space. A site in bad condition
needs more money spent on it and local planning restriction must also
be considered. So either way it is nearly the same amount spent.


Firms dealing with perishable goods, such as canning and freezing
firms, need to be near to where the goods are produced, in order to
save money. Businesses whose process is bulk- reducing, e.g. a brick
makers or a sawmill should also try to locate near to the source of
materials, so again to have lower transport cots. Bulk-increasing
businesses such as car manufactures do the opposite and try to be
close to the market.


All businesses need good sources of energy and water, efficient
drainage as waste disposal, and good communications. The business
needs to be in developed site. If it is located in a remote,
undeveloped site means paying the link up to such system. Being close
to fast efficient transport links is also vital.


Things like climate, competitions and co-operation with other
businesses and government group influence, may all play an important
role in the choice of the right location.

The sole trader I am investigating is Errol Anderson who owns a small
garage. In his garage in repairs and services cars. His garage is
located in Elmgrove Road, Harrow, London, HA1. This is a good location
for a garage as there are houses and other businesses nearby which
means that there are a lot of customers for the business. The area is
well developed, so there would be no problem with the energy and water
supply. The area is well served by transport links such as 'A' roads,
train and bus routes. This is vital because the customers need another
form of transport if they leave their car in the garage. There is one
more factor about this area. There are a lot of shops and leisure

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