location of a business

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Sophie Truman                                                                                           Coursework 3

Location Of The Business

One of the fundamental points to think about when setting up a business is the location. There are various different factors which affect a business location. My business is a café so there are specific things I must take into account. These include:

  • Transport- A business could need transport links for things like raw materials. I will need to make sure that it is easy to have stock delivered/ bought. I will also need to make sure it’s somewhere that is accessible to my workers and to myself so that it isn’t a trouble for workers to be on time. In case of an emergency, it’s sensible for me to live near the café so I can easily get there quickly.
  • The cost of premises or land- Depending on what business you have, you need to think about how much money you will have to spend on rent. As I am a sole trader, I only have the capital I am putting in. I want to try and keep costs of rent down. My business is new as well so sales at first will not be very high and I will therefore need to keep costs down.
  • The cost of labour- Labour costs are what It costs a business to hire workers, for example their wages. A business may locate where workers’ wages are low. Wages are often higher in London. When looking for a location, I will take into account what type of people live in that area. I will not be paying very high wages as I am a new business and will high costs at the beginning. I will be paying minimum wage and so will need to find workers who are willing to earn that sort of wage. Students would be ideal because they will take any type of job for an average pay. I will locate where I know I can find students willing to be paid minimum wage.
  • Near to customers and businesses- A business needs customers to survive so being accessible to customers is very important. I will locate where I will be sure of customers. Preferable on a busy high street. You need to be near to other businesses as well so that supplies can be provided, could save delivery time. I will make sure when looking for a location that my source of stock is easily accessible. This will save me delivery expenses.
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For café Sophia, I am aiming to find a location in which customers can be attracted easily, a location that is quite busy, doesn’t have too high rent and somewhere which isn’t too far away from suppliers.

I have decided to put my café on Golders Green Road because it seems like a suitable place. It will attract customers because it’s a very busy road and there is a station very nearby which could also attract customers. Having done some research, I know that I am likely to find employees who live nearby which is good for ...

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