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Location of a Business

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Introduction

Location Businesses need to find a good location for their business. This is because if they fail to find a good location, they won't attract many customers. The fixed costs have to be paid each month. This includes rent/mortgage, bills and wages. This means that the business is paying money for something which is of no use to them. Relocation and transferring goods to it are costly and not easy. Rent is also expensive and businesses need to make sure that they get it right the first time. All these factors will result in their business failing, causing their investment to go to waste. Venetian Ices, likewise, have to find a good location the first time round. There are many factors affecting a business. These include: Transport links 80% of deliveries are made by road. This is also the most common way businesses receive their raw materials. Air and rail transport are also under this category. However, air transport is quick but too expensive and rail transport is cheap but also unreliable in this country. Venetian Ices don't need air and rail transport as they don't require large amounts of raw materials as ice cream can be transported with ease. ...read more.

Middle

Rent/mortgage is also a fixed cost. This means that businesses will have to pay these costs whether they make a profit or not. They should also consider the desirability of the area in case they want to sell it/relocate later. Venetian Ices also need to consider this factor very carefully as a wrong decision might result in huge losses for the business. Planning permission All businesses need planning permission for the structural change that they require in the location/building now, and for expansion later. This might involve the size of expansion allowed, as it might conflict with a "green belt" or the restriction of the height of the building. The building could also be required to have certain structural restrictions imposed to preserve the building. Venetian Ices need to ask/check for the planning permission at their location, as this might hinder the purchase or the expansion of the business at the later date. Visibility Businesses need to locate somewhere people can see it. This will also increase the chances of attracting more customers, therefore increasing sale revenue. It will also help to widen the appeal to their secondary target market. A prime location is at the corner as it has bigger frontage. ...read more.

Conclusion

............................................................................................................ Venetian Ices should locate near Harewood house. This is because they will have access to a large consumer base as it a popular tourist attraction, both nationally and internationally. It also has a big car park. Insurance for goods and property shouldn't be high as the local council monitors the grounds, making it a safe area. Harewood house is also open virtually all year round, with the exception of the grounds and bird garden. Their opening times start at 10 a.m. It has a good local environment as it has a bird garden, parklands, gardens and woodlands. This provides the customers with the ideal atmosphere to buy ice cream. It is also easily accessible. It is situated just 7 miles from Leeds and Harrogate on the A61, and the Leeds/Bradford airport is just a short drive away. There is a bus service to and from Leeds. Two new bus services are also being introduced this year as part of the "green travel challenge". This also provides easy accessibility for labour and deliveries/raw materials. Planning permission shouldn't be a problem as there are already similar shops present there. This will also enable them to benefit from economies of scale. Visibility shouldn't be a problem, as tourists will go to the courtyard caf´┐Ż. However, the cost of land might a disadvantageous factor. This area is highly desirable and therefore could cost a lot. Kamran Ahmed ...read more.

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