some disadvantages of locating a business in a cheap location?
2006-07-22 12:46:00 · 8 answers · asked by trishaj 1 in Business & Finance ➔ Other - Business & Finance
It all depends on what you are going to do ....Low profile business like accounting, wood works, specialist shops like pushbike parts..motor car parts for example don't need high traffic ,it will find them ...shops like bakery, drug stores, retail clothing , shoes and the like
need high traffic flow (called the ant track) no ants no business
the land lords know this so the rent is in proportion the traffic flow ... please take note ...this is a MOST IMPORTANT aspect of starting a business....wrong location is the cause of many what could have been good business to fail....be very careful do much research .....
2006-07-22 13:13:08 · answer #1 · answered by Vivian X 3 · 2⤊ 0⤋
depends on the nature of the business.
if it is retail and depends on customer traffic ... a cheap location probably means less traffic ... which means less customers.
if it is wholesale or manufacturing ... then cheap might be a plus (lower overhead) if it has access to the infrastructure that you need (utilities, transportation, and labor) and if the additional costs for transportation don't outweigh the savings from the 'cheap location'
if is is virtual (like software development) ... then location matters very little.
remember, though ... don't be frivolous ... but you get what you pay for ... so consider the 'all in' cost ... including any capital needed to get the 'cheap location' up to the requirements of your business and to maintain the facilities over their life (like ... replacing a roof) ... and dont forget to allow for expansion as your business grows
good luck with your venture
2006-07-22 12:56:27 · answer #2 · answered by one_observation 3 · 0⤊ 0⤋
if you are talking about a mall or strip mall they probably don't offer any kind of advertisement allot of places will put a commercial or something out there a few times a year to endorse the whole complex but if its cheap you may not get this and it is a nice thing to have, also make sure people know about the place and know where to find it make sure its not to hard to locate it even if they weren't looking for it. you want you business to pop out to people that pass bye even to people that have no use for your services/ products b/c word of mouth is the best advertisement
2006-07-22 13:07:02 · answer #3 · answered by Meagan P 3 · 0⤊ 0⤋
if it was a location that had a lot of traffic it wouldn't be cheap so you have to spend money on ads to draw customer flow. bad neighborhood - you need security . - no parking - run down facilities - some inconvenience that you will have to throw money at is what makes the place cheap.
2006-07-22 12:58:41 · answer #4 · answered by Norman 7 · 0⤊ 0⤋
Usually cheap locations are cheap for a reason. Low visability, high-speed traiffic (who usaully don't take notice of roadside businesses), seedy neighborhood.
2006-07-22 12:50:36 · answer #5 · answered by James_Stormwind 3 · 0⤊ 0⤋
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2016-12-10 12:28:08 · answer #6 · answered by ? 4 · 0⤊ 0⤋
Well, it could possibly create a situation where nobody would come to you to do business with you. Other than that, I'm not sure.
'nuff said?
2006-07-22 12:50:46 · answer #7 · answered by Mr. Peachy® 7 · 0⤊ 0⤋
you prob won't have good business..
2006-07-22 12:49:39 · answer #8 · answered by ףαdy Đuchess× 7 · 0⤊ 0⤋