Location strategy

Strategic Planning

Being in the right location is a key ingredient in a business success.  A location strategy is a plan for obtaining the optimal location for a company by identifying company needs and objectives.

Location decisions are important to both large and small businesses.  It has a direct effect on the operation costs as well as its ability to serve customers, ie making more revenue.

It means the firm will attempt to maximize opportunity while minimizing costs and risks.

Formulating a location strategy typically involves factors such as facilities, feasibility, logistics, labour, community and site, trade zones, political risk, governmental regulation, environmental regulation and incentives etc.

Choosing a location for a new business is one of the most important decisions entrepreneurs make during the planning phase of launching ventures.

The location of a business can affect many aspects of how it operates, such as total sales and how costly it is to run.

The location decisions, once made, are difficult and costly to undo.  The costs of moving an operation are often significant and run the risk of inconveniencing customers and staff.

It is always best to get the location decision right first time.

Aiyan Thiruvalluvar says

தொடங்கற்க எவ்வினையும் எள்ளற்க முற்றும்

இடங்கண்ட பின் அல்லது. (491)

कोई काम न कर शुरू, तथा न कर उपहास ।
जब तक रिपु को घेरने, स्थल की है नहिं आस ॥ (४९१)

Explanation by Scholars: 

Let (a person) not under estimate nor undertake any act, until he has obtained (a suitable) place.

ஈடுபடும் செயல் ஒன்றும் பெரிதல்ல என இகழ்ச்சியாகக் கருதாமல், முற்றிலும் சரியான இடத்தைத் தேர்ந்தெடுத்து அச்செயலில் இறங்க வேண்டும்.