6 Factors Entrepreneurs Must Never Neglect
It is not always a good idea to rely on your best assumptions or gut instinct. Perhaps it would Be ok for minor risks, such as selecting beer at the supermarket or clothing at a department shop.
But not when considering where to establish a business.
I’m not suggesting you should abandon your instincts entirely. Not at all.
However, if you wish to start a lucrative business and invest your time and savings in it, there are certain considerations to consider during your business planning phase (or even later, when you are reconsidering your strategy).
That is why the business location analysis is one of the vital parts of every business plan, despite often aspiring entrepreneurs neglecting it and favoring profit projections or budgets.
For some businesses, like mine, location is everything.
What is business location analysis?
Business location analysis — it sounds so complicated, doesn’t it? So let’s call it BLA from now on.
Business Location Analysis is a key component of Market Research and business planning that allows you to evaluate the attractiveness of a location, using as basis multiple factors — more about them later.
When business location analysis is done during the start-up phase of a company it will help you validate/dispel your assumptions about the potential markets you can grow in, the types of facilities and infrastructure that need to be in place for your company to run efficiently and even how much money you might make.
It helps to find the most favorable places for a company’s activity.
There are obvious advantages to a good BLA, but some of them are often unpredicted, like reduced travel and transportation costs for employees, new markets for sales, or reduced production costs. Business location analysis requires long-term thinking since it is a business site is not something to be changed in a short time, unless your business is a circus.