Five Factors To Consider When Setting The Location Of A Company

Five Factors To Consider When Setting The Location Of A Company

Location Of A Company : Are you planning to start a business? Well, you should know that one of the most important decisions you will have to make will be the geographical location of the company. Of course, to make this decision you will have to take into account the concept and style of the business

Thus, if it is a retail trade, you will have to choose a place that has a good influx of public and that allows a good visibility of the business. However, these aspects are not so important in other types of companies.

Factors For The Location Of A Company

Today we want to talk about five more general factors that must be taken into account when setting the location of a company.


First of all, we want to talk about accessibility, an essential requirement to set up all kinds of businesses. Being accessible means having enough access roads for customers to visit the company and/or for suppliers to supply it in a timely manner. 

Thus, you must take into account the state of the roads, if it is a one-way street, the existence or not of traffic jams, if it is possible to get there by public transport . In addition, depending on your business, you may need access to large infrastructures: airports, railway lines, ports.


When choosing the location of a company you also have to take into account the costs of buying or renting the premises. The normal thing is that the most central or commercial places are more expensive, as well as those that have a large influx of public. Of course, you should know that there are also differences between neighborhoods and localities.

Licensing and regulations

Before choosing the location of your business, you should also assess everything related to licenses and regulations. In this sense, it is important that you make sure that you will be granted the license for the type of business you are going to run. That there are similar companies in the area does not assure you anything. In addition, you’ll need to update yourself on regulations or restrictions that could adversely affect the start-up or operation of your business.

Social acceptance

We also want to talk about social acceptance, a factor that many entrepreneurs do not take into account when starting a business and that, however, is very important. Thus, we recommend that before establishing your company in any location, you make sure that it will not disturb or generate conflicts with entities, social groups or people. If you don’t, you may eventually have to bear additional costs.


Last but not least, we want to talk about the availability of labor. In this sense, you must be clear that if the area you have chosen does not have qualified labor, you will have to obtain resources from distant areas, which will increase your costs.

Also Read : Local Business Ideas

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