Business Location
A shop on a busy high street outsells the same shop down a quiet lane. Learn the factors that decide the best location for a business, and why the internet is changing how much location matters.
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Location, location 📍
Where a business sets up can make or break it. A shop in a busy high street sells more than the same shop down a quiet lane, and a factory near its suppliers saves on delivery. This module explores the factors that decide the best **location** for a business.
Words to know 🔑
Four ideas run through this topic:
Why place matters? 🎯
Why does location matter to many businesses?
- It affects costs, customers and how easy it is to run
- It sets the colour of the products
- It chooses the name of the business
- It never makes any difference
Shop or online? ⚖️
How much location matters depends on how the business sells.
Match the factor 🔗
- Proximity to the market
- Proximity to labour
- Proximity to materials
- Proximity to competitors
- Being close to the customers who buy
- Being close to workers with the right skills
- Being close to suppliers of raw materials
- Being near to, or away from, rival businesses
The internet effect 🌐
The internet has changed where businesses need to be. With e-commerce, a business can sell to the whole country from a single warehouse, so being on a busy high street matters less. Many businesses now mix online selling with a few fixed premises.
What influences it? ✅
Which THREE factors influence where a business locates?
- How close it is to its customers
- How close it is to its raw materials
- Whether skilled workers are available nearby
- The age of the owner
- The name of the business
Compare the rent 🔢
An interactive activity.
Choosing a site 🪜
An interactive activity.
Complete the idea 🧩
A business chooses its _____ by weighing several factors. Being close to the _____ means customers can reach it easily. A factory often locates near its _____ to cut delivery costs. Thanks to _____, an online business can sell from anywhere, so its location matters less. A high-street shop needs _____ premises where people pass by.
True or not? 🖍️
An interactive activity.
Best fit 🔀
- A factory making heavy goods
- A high-street clothes shop
- An online-only retailer
- A software company
- Near raw materials, with space to build
- Where lots of customers pass by
- Almost anywhere, as it sells over the internet
- Near a supply of skilled workers
Pick the spot 🧭
An interactive activity.
Where should it go? ✍️
An interactive activity.