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How Does Your Business Location Matter To Customers

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As a good entrepreneur, what will you consider when choosing a good business location that will favor your customers?

I think this is one question people ask themselves before setting up their businesses.

This is because every business needs good customer patronage to flourish.

Whether it be an online or an on-ground business, any business without customers will go down.

Oh yes, businesses need to create brand awareness, engage in marketing campaigns and many more productivity strategies.

However, all these strategies still boils down to the customers.

They need to be able to reach you when they want and that is where your business location comes into play.

Therefore, let us discuss some major factors that matters in choosing the best business locations.

12 Major Factors Why A Business Location Matters To Customers:

In todays business environment, entrepreneurs and business owners are very mindful of their business locations.

1. Proximity To Consumers:

No body wants to go 20 miles before buying their choice item.

Similarly, businesses which are situated close to the final consumers tends to do well when compared to others afar.

When a business location sits exactly at the center of it’s demand, everything becomes automated.

Sales will rush in and the business revenue will grow without hindrances.

2. Market Demand And Supply:

The location of a business will play a major part in its market demand and supply curve.


When your customers are demanding for a product your business offer and your location becomes a problem for them, over time they will lose interest and start looking for alternatives.

The market demand you business enjoy will reduce and this will also decrease your supplies to customers.

3. Increase In Sales And Brand Visibility:

Imagine a business sitting at the top of a mountain in a major city.

This will become easy for passer-bys and even strangers to see.

The location of a business contributes to it’s daily sales and brand visibility.

Locating your business in a place where people can easily see you will boost your brand awareness.

Hence, when people need your product and services, your business will come straight into their mind.

4. Emergencies:

What if you mistakenly supplied deficient product to your customers and they need to return it?

Your location will make it easy for them to change products that do not meet their taste and standards.

Similarly, in cases of emergency sales, when customers rapidly demand your products, a good location will foster more sales to you.

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5. Quick Accessibility:

Accessibility is the first and most important criteria for siting business locations.

No one will patronize a business that lacks good accessibility.

Imagine siting your businesses in terrain with bad roads and large pot holes when driving becomes a task for customers.

Such customers will surely swindle elsewhere if they find a quick alternative with good driving routes.

Similarly, imagine sitting a business after a stream where routes demand the use of flying boats.

Well, depending on the type of services and products such businesses sells, they might lose out on sales.

6. Your Business Location Must Be Cost Effective:

How much will it cost customers to get to you?

If you sell items that requires transportation and hauling, what will it take them to move those items?

Cost is a major requirement in business.

You must be smart enough as an entrepreneur or business owner in siting your business in a location that minimises cost for your customers.

7. Your Business Location Will Largely Influence Your Bargaining Power:

Your business location will play a major role in either boosting or dropping its bargaining power.

When customers come from far distance area to patronize you they tend to feel you should reward them in return.

What do I mean by this?

They end up asking for unexpected discounts because they want you to reward them for coming to you.

Hence, your business location is vital if you must win over when bargaining prices with customers.

8. Safety And Comfort Is A Major Criteria For A Good Business Location:

Let us say your business has to deal with sales of fire extinguishers, then I think having your business is fire prone areas will be a smart move.

Similarly, you can reach out to factories, gas stations and industries to supply your products to them.

This is because people love to play it safe and stay convenient at the same time.

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9. Most Businesses Choose Their Locations Due To Taxes And Government Policies:

Businesses are usually established to make profits.

Hence, taxes, government policies and regulations largely impacts the location of a business.

Since business owners are trying to save cost by paying lesser taxes, they will resort to regions with low tax charge.

Also Read: Why Does The Rich Pay Lesser Taxes Than The Poor And Middle Class.

10. Market Competitions:

For instance, a food vendor selling 20 meters ahead of an hungry customer carries the potential to sell faster than the other which is 100 meters away.

This is where market competition comes into play in dealing with business locations.

This works well for product offering companies in major cities close to huge residential populations.

11. Your Demography And Business Location Will Foster It’s Life Span:

Do you know that the market is so competitive today and if you are not seen, you”ll miss out.

Thanks to the internet, business owners can now run online campaigns to get seen from far and near.

This is possible because everyone now engages on various social media platforms.

Hence, visibility can now be bought with good money and targeting.

However, the place of location cannot be cheaply underestimate.

Location is a booster to sustaining the lifespan of businesses especially for product offering companies.

Giving people the ease of getting to you physically will increase the life span of your business.

12. Business Growth And Revenue:

Every business that seeks quick growth and rapid revenue must be careful while choosing a business location.

All the many factors like proximity, accessibility, costing and bargaining power contributes to a business revenue and profits.

Wealthy customers are willing to partner as investors in businesses with potential for massive growth.

5 Important Factors To Consider Before Multiplying Your Business Locations:

  1. More Staffing Comes In.
  2. More Business Revenue.
  3. Market Demands Becomes Higher Than Supply.
  4. To Serve More Population.
  5. To Compete Favorably With Market Competitions.


Even though the location problem might have been largely solved by the internet, however not everyone is tech savvy enough to go online.

Entrepreneurs like Bill Gates, Jeff Bezos, Mark Zuckerberg and many more has showed the world that everyone can access a business from anywhere they might be in the world.

However, they still have physical locations in fantastic spots around major cities where they call their offices and headquarters.

This shows that having a good business location still sits as a top dominance criteria for entrepreneurs.

I hope this article releases some valuable insight to you.

Feel free to drop your contributions with me at the comment session.



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