Location of a business
Transport- A business could need transport links for things like raw materials. I will need to make sure that it is easy to have stock delivered/ bought. I will also need to make sure it’s somewhere that is accessible to my workers and to myself so that it isn’t a trouble for workers to be on time. In case of an emergency, it’s sensible for me to live near the caf so I can easily get there quickly. The cost of premises or land- Depending on what business you have, you need to think about how much money you will have to spend on rent. As I am a sole trader, I only have the capital I am putting in. I want to try and keep costs of rent down. My business is new as well so sales at first will not be very high and I will therefore need to keep costs down.
The cost of labour- Labour costs are what It costs a business to hire workers, for example their wages. A business may locate where workers’ wages are low. Wages are often higher in London. When looking for a location, I will take into account what type of people live in that area. I will not be paying very high wages as I am a new business and will high costs at the beginning. I will be paying minimum wage and so will need to find workers who are willing to earn that sort of wage. Students would be ideal because they will take any type of job for an average pay. I will locate where I know I can find students willing to be paid minimum wage.
Near to customers and businesses- A business needs customers to survive so being accessible to customers is very important. I will locate where I will be sure of customers. Preferable on a busy high street. You need to be near to other businesses as well so that supplies can be provided, could save delivery time. I will make sure when looking for a location that my source of stock is easily accessible. This will save me delivery expenses. For Sophia, I am aiming to find a location in which customers can be attracted easily, a location that is quite busy, doesn’t have too high rent and somewhere which isn’t too far away from suppliers.
I have decided to put mon Golders Green Road because it seems like a suitable place. It will attract customers because it’s a very busy road and there is a station very nearby which could also attract customers. Having done some research, I know that I am likely to find employees who live nearby which is good for me because it will mean they should be punctual- it will be easily accessible for them. It is a residential area, which means not only will I be able to find staff easily, there is a lot of opportunity to gain customers. It’s not too far away from suppliers as it is in the city. It is near Costco, which is where I’m likely to buy my stock from. It’s accessible, and near to main roads so transport links are accessible. There are other popular cafes and restaurants on this road so there will be competition which is a disadvantage.
My location is just near Golders Green Station which is an advantage because this will give me a chance of more customers. People like to get a cup of coffee in the morning before they go to work, and by being near the station, I could have a good opportunity for sales. I will have lots of competitors in this location which is a disadvantage, and means I will have to offer something different. There are lots of cafes on Golders Green Road, including the famous Starbucks which is very popular. I will have to look at ways to overlook competitors.
Advantages of location Disadvantages of location Lots of competitors which could mean my business would have to make sacrifices to prosper and this could bring the profit down. I would ideally have chosen a place in the centre of town like Oxford Street but as rent is much higher and myself being a sole trader to begin with and introducing a new business it might be better to first keep it a bit quieter and cheaper. As I hope my business will prosper, I would expand to places like Oxford Street. If my business were to fail, the costs would be much higher in a place like Oxford Street.
I could have also chosen Brent Street which is a main Street in Hendon which similarly has many cafes and restaurants and is very busy but I chose Golders Green Road as I thought that being nearer to a station could be an advantage because it could attract more customers. I will have to find ways to cancel out competitors. I may cut my sale prices at first to attract new customers to my products.