Why it’s important for small businesses to choose the right location for their business

In the current climate the world finds itself in, much has been written about starting and running businesses from kitchen tables as the world continues to fight the Covid-19 pandemic. Even though this is still the case, and businesses created over the past year may take longer to move into offices or manufacturing spaces than in the past, it is still important to be aware of the latest developments. decisions in this area.

With that in mind, we’ve decided to write an article on some of the top reasons why it’s important for small businesses to choose the right location to set up shop.


Any successful business owner will tell you that one of the most important reasons they are successful is their people. So often it is the the people you employ who make up a business, and the location of your business can play a crucial role in your ability to attract employees.

In some industries, employees can choose between job opportunities because they are in high demand. When this is the case, companies need to be as attractive as possible to employees. While offering a competitive salary plays a key role in this regard, the other aspects of working for the company also play a key role in convincing potential employees to come and work for you.

The location of your business is one of those aspects. Small business owner David Robinson of Robinson of England explained to us that one of the reasons he chose to found his business in the North East of England was that “the quality of life you can provide to your employees is vital”. This includes the cost of living, local social life, and transportation options. By choosing an area of ​​the country that offers a high quality of life, you will be able to offer more to potential employees than a competitive salary and a great work environment.

Running costs

Another vital element for any business is the running costs that accompany their operation. It can be as simple as the cost of renting a store to the cost of production and manufacturing for industrial companies. It is essential that businesses remember that these costs can vary by location.

Not only can commercial properties be more expensive in some places, but wages can vary as well. If we compare London to other parts of the UK, the cost of owning or renting commercial property is higher. Plus, since the general cost of living in London is higher, the salaries you need to pay the staff are also higher. All these costs must be offset in your prices to customers.

Depending on the nature of your business, if you don’t rely on customer traffic and work more online, choose a location that has reduced operating costs could be more beneficial for the long term success of your business.


It is unusual to find a line of business without any competition. Even if your company is the only one producing a particular product or offering a specific service, there are likely other companies that could compete with you and offer something similar.

Location can play a big role in the competition you face. For this reason, it is essential to conduct in-depth market research to identify exactly who this competition will be. If you think you can offer a service or product that your local competition cannot, you may choose to position your business in the same location as theirs. However, there are also advantages to starting a business in an area where you are a sole source and then expand outward.

Overall, location is a really big factor in the success of a business. For any new small business that is starting out, it’s critical to remember that getting to the right location may not happen right away, and there can be pros and cons of a location that you don’t realize so much. that your business is not operational for a while. It’s important not to get discouraged and remember that there are always alternative locations for your business that you can explore that can provide more benefits and help your business succeed.

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