Locating the Business

factors influencing locating a business

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  • Created by: liam
  • Created on: 12-12-10 13:45

Stakeholder

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An individual or group with an interest in a business, such as employees and shareholders

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Teleworking

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Working from home using technology such as the internet, telephone and fax machines

Advantages

Free (or minimal cost). This is the big advantage! Remember that most start-ups are short of cash!

Requires greater self-discipline – it is easy to get distracted!

Very little travelling, although customers and suppliers might still need to be visited

You can wear what you like!

Environmental benefits – lower carbon footprint

Reduced risk and a lower break-even point for the new business – no commitments to rentals and lower overheads

Work can be combined with domestic tasks and responsibilities (e.g. child care). This can mean significant cost savings

Disadvantages

Work is often interrupted – e.g. by callers to the home or by family

Work never goes away – it is difficult to separate work from home life

Potentially lonely – lack of simulation from colleagues

Working from home can give a poor impression to potential customers

Some hidden costs – e.g. extra household insurance, potentially higher capital gains tax

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Infrastructure

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The quality of access to a business through things such as roads, canals and railways

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Cost of Land

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The cost to buy or rent a premises, it costs more closer to a town centre

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Population

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a large population means more possible customers and a larger choice of employees

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Competition

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a business wants to locate away from competitors so the business does not have to compete for sales and risk losing profit

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