Location factors for business Essay Example Essay Example

Location factors for business Essay Example Paper Location factors for business Essay Introduction All businesses, whether they produce goods or service, have to decide where to locate. This can depend on the fact that the firm wants to be closer to its target audience or produce the goods at a location where it is cheapest, it can be also linked to the business environment and other reasons aspects of the business which would affect the location of the firm.Demography:This is were the size of the population and the changes in the population are taken into consideration and studied in depth. Many businesses, mainly businesses which are included in the service sector are influenced by the demographic factor. For example on the south coast of England, Bournemouth has the highest percentage of elderly people living there, and that is the highest population in UK of the elderly situated in one area. Si this attracts people to Bournemouth to retire for to main reasons which are its climate, and the services businesses have in offer therefore there are many businesses which specialise i n providing the elderly community with goods and services best suited for that target audience.Seen as compulearn is also partly linked to the service sector it will be looking into demography because Compulearn also does services and thereby will need to look into the number of the population which in this case will be the population of Hounslow which is 212341, and it will need to look I will look into the changes within the school.Infrastructure:The infrastructure is the built environment such as the roads, factories, schools, railways, airports, houses and hospitals. The infrastructures of an area will affect the location of businesses. Most businesses tend to buy or rent premises which already exist; this is because it is cheaper than building a whole new factory for business. For example, a business thinking of setting up a shop may want to set up in an area were many other stores would exist and many customers. A larger business however may look for a location with good housi ng, school and leisure facilities for employees.There are also a few businesses which would prefer to build on Brownfield or Greenfield sites. Brownfield sites are sites which locate availability for industrial buildings or house. Greenfield sites are locations available for industrial or residential buildings, however the Greenfield site will agriculture or on developed piece of land which has never been built on before. These businesses may lose out when locating in Greenfield or Brownfield site. This is because Greenfield and Brownfield sites because it will have to pay more due to water and gas pipe fixing and electricity and phone connections and so on. However there are some advantages to having Brownfield and Greenfield sites because businesses are abler to build the infrastructure for the business and so the infrastructure will suit the businesses every requirement. None of this will be required of compulearn will be locating at Bell Road, Hounslow, Middlesex electricity and telephone will have to be paid for.Labour:Availability of employees in the area is vital. Businesses need to research on the availability of suitable employees in that area for the business; this involves employees having the right set of skills for the for example knowing how to program in c++(Computer language) or HTML (Website Language Short for Hyper text mark up language) this would save the business money because the business would not have to send the employee on a course which would cost a substantial amount of money. To do this I must.1. Consider the population statistics in the area2. The number of people who are looking for jobs3. The skill that workers will need to have4. The wage or salary that people in that area will expect.Many businesses locate their business in that area’s which would benefit them the economy. For example businesses may situate in places such as UK because the total cost of hiring employees will be lower and UK labourers is well educated an d trained for jobs. Compulearn will have employees because it will need more than on teacher to help classes also we will need teachers with different skills so that every course has a teacher that is specialised in the field.The cost of premisesIts important that businesses have premises, this for businesses can be quite cheap or very expensive, the cost of the premises can vary enormously depending upon their availability, and this is all to do with land. Businesses wanting to be closer to customers would therefore would be extremely expensive and could have down fall in production , land is cheaper further out of the capital city because there is more land available, however this means that there isn’t a thrive in mass production and consumers are more likely to be in the cities where all businesses prosper. Compulearn will have to pay mortgage to the bank.The availability of premisesThere isn’t much availability of premises and the ones that maybe very expensive su ch as city centre sites will be quite expensive for businesses and only those who can really afford to splash out will be able to afford these sites. The sites will also need to be the right size for the firm, for example a small local convenient store wouldn’t need premises as big as Tesco’s or Asda to locate. Also out of town developments are more popular now then ever before. Compulearn will need to have a decent size premises, a decent size premises is 15m x 15m.Where the suppliers areFor some businesses locating near the suppliers is necessary because the products needed to be produced maybe large and transportation will be expensive. For the businesses and thereby, locating the business near the suppliers is cheaper, or in other cases the firms need to be closer to the natural resources and will have to locate somewhere suitable for the business to be close to the natural resources. Compulearn suppliers will be on the internet this known as E-commerce. Compulearn will not need to be closes to the suppliers because all the products will be delivered to the location of the business Bell Road, Hounslow, Middlesex.Where the customers areCompulearn will need to locate near the customers; because this is the best way for Compulearn to be known and attract more customers this will boost our profits. Seeing as Compulearn will be locating in an area of London with a unemployment rate of 2.6% of the population being unemployed and 5% being unemployed for 2 years or more. This would be good for my business because they could start my course and get themselves a high paying job.Where the competitors areOften businesses will locate near their competitors. This is because they can compete in the market; however some business may stay away from competitors so customers have less choice and will have few options. For example compulearn will be locating further enough so that we are able to be the only one in that area with a computer teaching business but close enough to provide competitive prices to compete with other businesses in Hounslow, all businesses need a USP. This means a unique selling point where no other business can take over, this unique selling point will help the business attract the customers needed for making a profit.To do this businesses need to attract the customers needed for making a profit, to do this businesses need to identify competitors, and identify their own unique business and what makes their business special from the competitors. Compulearn has identified potential competitors which are other businesses running in Hounslow. We will be offering services to consumers. Compulearn sells services that will teach the consumer how to use a computer or how to code in c++ which Learn direct do not teach. We will be able to get you a degree in the language so that you can get a job. This is one of our unique selling points which we will use to our advantage.Some businesses my need to locate near roads, railway s and ports; this links to infrastructure because the roads and rail ways and ports are the built environment of the firm. A business needs to have good transport links for the products to be consumed by customers; the customers need to get the products quickly so the company bring more products in. This way more products will be sold and the money can be reinvested back into the business.They also need good transport links so the customers can easily get to the location of the business and buy the products and because Compulearn is near two major tube stations then we would obviously sell more of our learning packages to the people that need it, this will increase our profit which we could then use to help forward the business, like buy another store in another prime location so that we would be able to make more of profit and also a bigger share in the market. The good transport links makes it easier for our customers to get to us and also easy to find us.ConclusionLocation to com pulearn is important because even though the business may have the perfect service which will fill the demands of customers, if the location is not right, the business will loose out and if we loose out on customers then we will not be able to keep up with the rent of the property and would mean that we would need to cut back on costs which would lead to less courses being taught and less customers coming and a lower customer satisfaction. A business such as compulearn who is a small partnership needs the right location for the business because without the right location the business will not survive.The right location for the business will be in a area that has a low employment and is need for education. Our business will be the best way for the area to regenerate itself. If the business does not get potential customers the business will again loose out and will not make enough profit for the business to on and wil have to close down, because there is not enough consumers available because of the location. For compulearn being a vibrant area will help the business substantially also the business will be able to advertise by using word of mouth advertising and by this the profits of compulearn will increase. Location factors for business Essay Thank you for reading this Sample!