Location is a place where an entrepreneur will carry his business operations. Location plays very important role for the success of entrepreneurial venture as it has impact on costs, sale, markets etc. So an entrepreneur should decide best location to conduct his business taking into account the following various factors :
- Area or space - entrepreneur needs sufficient amount of space for keeping inventory, equipments to produce goods and services.
- Convenience to customer - the main of an entrepreneur is basically to establish the business where it becomes Convenient to customer to visit their stores and at the same time should provide the feeling of safety to them.
- Sales - sales opportunities are affected by location of business to a great extent as location of business should be capable enough to bring customer traffic.
- Availability of raw material - Availability of raw material is very crucial in deciding the location of business especially for manufacturing units. If raw materials are available far off then transport costs will reduce the profit margin of entrepreneur.
- Distribution channel - distribution channel is another major factor to be considered by an entrepreneur. He should intend to make it easier for final or end consumers to access his products.
- Competition - number of competitors in the location of business should also be considered by an entrepreneur before finalising the location. As a competitor may act as a threat to business and can make tough for the entrepreneurs to survive. So in this case an entrepreneur may locate his business elsewhere.