Location is a critical factor for the success of a business. Even if the products or services offered are of high quality, if the business is in a less strategic and hard-to-reach area, it will attract few visitors, and the sales will be insignificant. Conversely, if the business is in a strategic location, the chances of success will be much greater. There are several ways to choose a business location, both through traditional methods and by utilizing modern technology. In this article, we will discuss how to choose a strategic business location.
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Key Characteristics of the Best Business Locations
Before we talk about picking the perfect spot for your business, let’s first break down what makes a location really great for setting up a shop.
Crowdedness
A good business location is typically in a busy area. This bustling environment is an important factor to consider when choosing a location, especially for businesses that rely on the number of people visiting the store or location.
However, it’s important to note that not all busy places are strategic.
For example, a busy location near a highway usually only has vehicles passing through without stopping, which is less suitable for business.
Strategic crowdedness is a place where people tend to stop and shop, such as shopping malls, office areas, or tourist spots. Choosing a location like this can increase your business’s chances of success.
Accessibility
A strategic business location is also characterized by good accessibility. Typically, these locations are situated in areas easily reachable by public and private transportation.
This ease of access allows distributors or suppliers to deliver products smoothly to the store, making the procurement process more efficient.
Competitors
This characteristic depends on the type of business. Some businesses benefit from being close to competitors, while others prefer to be farther away.
Therefore, it is important for business owners to carefully consider this before setting a location. If a business believes it will benefit more by being near competitors, it can find out where competitors are located and open a store nearby.
How to Evaluate and Decide on a Business Location
After we’ve nailed down what makes a location ideal for business, the next step is to figure out how to find that strategic spot.
Survey
The first method for businesses is to conduct a direct survey. Businesses can physically visit potential locations to assess their suitability for opening a new shop.
During the survey, businesses can observe foot and vehicle traffic, as well as nearby shopping centers, offices, and entertainment venues that could attract customers.
They can also speak directly with property owners or real estate agents to gain accurate information about rental or land purchase costs.
However, this method has drawbacks.
Manual surveys require significant time and effort, as each location must be visited individually. Additionally, transportation and accommodation costs can be high, especially if the potential locations are far apart.
Location Intelligence
The second method involves using location intelligence technology, which allows businesses to identify strategic locations within minutes. After receiving several location recommendations, businesses can further analyze them.
Through location intelligence, businesses can view traffic patterns, demographic profiles, transportation accessibility, and the presence of competitors around the recommended locations.
They can also understand movement patterns in the area and identify important facilities nearby, such as shopping centers, schools, and hospitals.
In addition, this technology assists companies in cutting down on expenses related to field surveys and saves time and energy. This leads to a more streamlined and rapid location analysis process, enabling more efficient expansion of business operations.
Many location intelligence platforms provide additional data, such as market analysis, consumer trends, and regional growth predictions. With this data-driven information, businesses can make more accurate location decisions and maximize their potential for success.
Find the Best Business Locations with LOKASI Intelligence
LOKASI Intelligence is a geospatial analytics platform that integrates location intelligence and comprehensive location data. This platform helps businesses easily find the best locations to open their ventures and analyze them in detail.
LOKASI’s data include disaster data, people traffic, grocery stores, socioeconomic status, land value, and more.
From this data, businesses can assess disaster risk levels in specific locations, the number of people active in certain areas, as well as the economic and social profile of the surrounding population and land values.
All this information helps businesses make smarter, more strategic decisions about where to set up shop, boosting their chances of success.
Learn more about how LOKASI Intelligence can assist your business by contacting us at: [email protected] or WA: 087779077750
FAQ
How do you define a strategic location?
A strategic location offers excellent accessibility, ensuring that it’s easy for consumers, distributors, and suppliers to get to.
What factors contribute to a successful business location?
Key factors in choosing the best business location include the area’s crowd level, the amount of foot traffic, how easy it is to get to, the availability of public transportation, and how near you are to competitors.
How do you determine a business’s location?
Businesses have two main ways to choose a location: they can either conduct direct surveys or use location intelligence technology.
