Is Business Location Important to Small Business Owners?

Aug 18, 2019 | Business Ideas | 0 comments

Business Location

If you intend to start a home business, certainly physical business location isn’t necessarily much of your concern. But when you eventually consider opening a store or office, the place you select to run your business activities matters significantly.

A business location is where you decide to operate your business activities. As a small business owner, it’s crucial to consider a locality that will lead you to success. You should choose the most suitable location based on the following factors.



Safety and security



Support services




Legal aspects

Select Your Business Location Based on Customers



No business can thrive without clients. Your targeted customer base determines whether you will generate enough profits to sustain your business. The place you select, therefore, should appeal to the local population. If people are not interested in a particular type of business, then that business will collapse because of insufficient customers.

It’s, therefore, crucial to understand your targeted customers. Who are they? To get the correct answers to this question, you have to do research. You cannot sell to everyone. You, therefore, have to zero down to a specific demographic on which to focus your effort.

For instance, a small boutique business could choose to market stylish clothes to working ladies between the ages of 30 and 50 with incomes ranging from Uganda shillings 2,500,000 (approximately USD 684) and above. Having this information about your target customers at the back of your mind will help you significantly select the most suitable location for your business.

Think Convenience When Choosing Your Business Location

It’s essential to make it easy for your customers to buy from you. Your clients shouldn’t make much effort to purchase goods from you. In Kampala city, for instance, aspects like availability of packing and safety are crucial. Convenience can make people move long distances to make the must-have purchases.

Safety and Security Are Essential When Selecting a Business Location

Ascertain that you choose a safe and secure place for your business and customers. This aspect is vital because you have to guard your business against risks of loss through happenings like robbery, especially if you intend to work late in the evening. Secondly, your clients must feel safe and secure when buying from you.

Consider the Expenses Vital as You Select Your Business Location

How much will the premises cost? Rent varies from place to place. For example, in Kampala City, locations with high traffic are pricey. To operate in such areas, you must spend a lot of money every month. On the other hand, edge-of-town premises are relatively inexpensive. You should weigh the two options and select the most suitable one for your business.

Apart from the cost of premises, there are other operational expenses you should consider because they also determine the success of your business. Do not underestimate expenses like lunch, parking costs and transport.

Think Visibility When Choosing Your Business Place



Goleza Designers is an example of a business that is difficult to find. Some of our customers ask for our location repeatedly to reach us. But we thought about it initially and instead chose to target online visibility. 

Though we are hard to locate physically, we are very much visible online.

If your business’s marketing strategy isn’t online, consider establishing it in a location where prospective customers will realise that it exists. The most suitable place is where there are pedestrians and vehicle traffic because customers will see it.

Consider the Support Services Essential

You need services offering specialised advice. As a business owner, you may need accounting and audit services, legal services, training, banking services and much more. You should get such services readily available in the business location you select.

The Ability to Get Suitable Employees is Vital When Selecting a Business Location

You need workers to help you in business. Your business neighbourhood should produce locally enough skilled staff willing to do specific tasks at a reasonable wage.

Infrastructure is Essential When Selecting a Suitable Business Location


Infrastructure refers to the facilities, services and installations you need to run your business. Roads, communication, and electricity are some examples. You want them because they support your everyday economic activities.

For instance, in modern times, you need the internet to communicate with your customers and suppliers. You cannot send and receive WhatsApp messages without having internet access. Likewise, an excellent transport network enables your staff to move to work quickly. It also facilitates the movement of materials from your suppliers and the delivery of finished products to your customers.

Choose a Business Location that Will Enhance Your Brand Image

When looking for a place for your small business, get one with which you will build your brand long enough to succeed in business. Your business location is a starting point for promoting your brand image. This location should, therefore, be supportive in making your brand grow.

Legal Aspects and Business Location

Before choosing a particular place, establish whether it’s legally acceptable to operate your business there. The local government may have rules for everything, like the type of business allowed in a specific area and the size of your business signage.

Final Thought

Don’t overlook the significance of the location where you intend to establish your business. It’s such an essential factor that will determine the future of your business. If you want to succeed, do your research thoroughly and choose an appropriate place for your business growth.

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Plot 37/39, William Street, Kampala

Call: +256 – 703 – 779 889

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