Business Spaces

The Effect of Business Location to the Business' Success


Source: Dana Griffin

Push And Pull Factors

Factors that draw a business away from a certain location are “push” factors. These include increasing costs, more competition, a reduction in demand or poor communication and transportation systems. Conversely, those that “pull” a business toward a location are lower labor costs, a growing consumer base, government incentives, improved transportation and communication systems.

Customers And Community

When you rely on customers to visit your business, consider the demographics of your potential location. A business appealing to young families would not do well in a location where the average householder is older than 50. A day care facility would need to be located near where young dual-income families live, or where young parents work, so that dropping off and picking up are not out of the way.


When your business relies on the local community for support, you’ll need to check out the competition. In some cases, being near several similar businesses is an advantage because it draws a consumer group to that area.

Choosing Space

Once you’ve chosen the general area, you’ll need to determine what kind of space you’ll need for your business. A retail business needs street access and a storefront. A coffee shop or cafe needs kitchen facilities. If you’re warehousing and shipping, access to shipping facilities might be the priority, and a labor-intensive assembly business might need to locate nearest to the source of inexpensive labor, such as a college campus


Alisa Verratti