How to select a location when starting a business: Does location really matter?

The reality of this business principle dawned on as I entered into Lagos through Lekki-Epe expressway. I passed by a Secondary School and it was lonely and surrounded by bushes, the first thought that came to my mind was – if I had kids I certainly won’t be bringing them here. This wasn’t the first time I had said something like this as I have also seen other lonely looking schools along the Lagos-Ibadan express road. However, that day though I knew it, in theory, the reality dawned on me – Location matters when siting a business.

When starting a business, please take cognizance of the location. I believe that a major concern of parents when choosing a school apart from the standard of education is security and also health care.

So the first thought I had when I passed by was – How safe is this environment? Even if it were seeing that they could have trained security I still felt it can’t be as safe as one surrounded by a community. I also thought to myself – How good is their health care system? Well, I believe there are certain cases you may need to transfer out of the school’s clinic, I wondered how far the nearest GOOD hospital was from them.

I was just thinking as any parent would think the only difference being that I don’t have kids. Maybe the concerns for parents may even be more but these were the first thoughts that came to my mind. For certain businesses an isolated environment is the best, industries that deal with toxic chemicals that are not particularly good for the health of individuals may want to go to remote locations, such industries will have to ensure that their delivery system is great, if they are a product related company/industry, or at least they should ensure that their roads are motorable to move out their products. There are also certain rules for certain businesses i.e a petrol station should not be built at a residential location a rule I believe hasn’t been strictly adhered to in Nigeria.

I had a location challenge when I started out. I can work from anywhere as long as I have an internet connection, imagine my dismay when I was serving in Benue and the connection was absolutely nothing to write home about. Sending large files was virtually impossible due to the rate at which files were uploaded (*no offense to indigenes).

Benefits of Choosing a Good Location

1. Patronage

2. Reduced running cost

3. Easy access to employees