Does Location Affect Business Performance?
It’s long been known that the location of a business premises can have a major effect on its performance, with bustling city centre locations being highly sought after for high-flying businesses even as expensive real estate rates force smaller firms to look elsewhere such as Air Freight Jobs.
The growth of internet services has made location less vital in this regard, as companies that exist solely or predominantly in the on line sphere often don’t require the convenience of a central location, which is good news for overheads. Setting up in more remote areas can present some barriers to businesses however, including limiting the number of skilled or competitive workers available and making meetings with partners and clients more difficult. For companies that manufacture or sell products, location will also have a significant impact on transport availability and costs, with good road links being essential.
Proximity to Customers
Certain types of businesses can only thrive in certain environments, such as stores that require a steady stream of customers and the exposure of main roads or shopping centres, which may not survive away from commercial hubs. When it comes to setting up businesses overseas, this can reduce property and salary expenses, but could also increase the need for costly business trips to the firm’s home country.
For businesses that desire the prestige of a city centre address but don’t have the funds to set up their premises there, they may make use of virtual offices through which mail and telephone calls can be directed. This way, customers and potential clients will get in touch via an NW1 postal address or 020 telephone code even if your business is nowhere near Central London.
The location of a business is important for more than just prestige though, and when setting up a new business or expanding into new areas, it can be useful to check the type of facilities available. Business parks can be desirable locations due to the number of facilities in the area, and if you operate a certain type of business, such as an IT firm or factory, you could look into the skills of the local workforce, based on other companies that have established presences in the area.
Governments and local authorities will often try and stimulate an economy by enticing companies to locate themselves within the region they oversee, such things include, tax breaks, legal perameters and improvements to transport infrastructure to provide a more desirable location to some employers. At present in the UK, the government has set targets to improve the connectivity of the nation and reduce the significance of location to the bottom line. The current government is aiming to provide the nation with the best superfast broadband network in Europe by 2015, which means increasing the number of fibre optic broadband areas in the UK and spending £300 million on creating 10 super-connected cities and improving mobile coverage. This suggests that location is still important, as there may be advantages to being located in the super-connected cities.
Mark James is an on line copy writer who writes for a variety of websites and organisations. He has a particular interest in technology and it’s role in business performance.