Briefly describe the five key factors in selecting a good location for a "brick-and-mortar" retail store. Which of these factors do you believe is most important? Why?
The location of a brick-and-mortar business is the key to the success of the business. There are five key factors in selecting a location they are customer accessibility, business environment conditions, site availability and cost, entrepreneur’s personal preference, and resource availability “The choice of a good location is much more vital to some businesses than others” (Longenecker, Petty, Palich, & Hoy, 2012).
It is important for the customer to have access to the location of the business for profit alone, but Customer accessibility is also important because “Rarely will customers be willing to travel long distances on a repeat basis just to shop” (Longenecker, Petty, Palich, & Hoy, 2012).
The business environment would include such factors like the tax structure, competition, legal requirements, and weather. Too much competition for the same product can hinder the profit margin for a business causing failure. The weather is a factor for a business because a flood zone can keep customers away. The legal requirements and tax structure can help or hurt a business.
Site availability and cost should always be considered carefully. A site that has had many businesses in the last several years may not be a wise choice. A new business may wish to use a business incubator this “Is a facility that rents space to new businesses or to people wishing to start businesses” (Longenecker, Petty, Palich, & Hoy, 2012). An important decision in site availability and cost is whether or not to lease or buy, but “The advantages of leasing often outweigh the benefits of owning” (Longenecker, Petty, Palich, & Hoy, 2012). The personal preferences may include travel to location although living close to you place of business is preferred...
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