What are various decision criteria for deciding a location for a business setup? Explain
these decision criteria with reference to a location decision for setting up operations of a
Large Hospitality Setup (like a Resort. etc).
Answers
Explanation:
Six factors to consider when choosing a location for your...
- Accessibility. Does your business rely on frequent deliveries?
- Security.
- Competition.
- Business Rates.
- Skill base in the area.
- Potential for growth.
Answer:
There are many things to consider when choosing a location.
Explanation:
Key factors a business needs to consider when selecting a location for business setup like a large hospitality setup:
1. Accessibility
It’s vital to consider local transport links, particularly main roads and motorways. When relying on high customer footfall, then ensuring that the location is accessible by car, bus and even train will all be important considerations, for resorts.
2. Security
The location can increase the odds of being affected by crime, which in turn can influence insurance premiums, as well as the additional security measures needed to keep resort premises safe.
3. Competition
The proximity to other competing businesses could be crucial for success. Establishing which competitors are in the area and their offering could help choose the right location for the resort. If there is too much competition then it may be a warning sign to expand to a new location.
4. Business Rates
Cash flow is critical as it determines the viable ability for a business to survive and pay its bills. Therefore, it is important to research the average business rates including rent, utility bills and taxes in the area to ensure the location is affordable enough to establish a resort.
5. Skill base in the area
Employees are often a business’s biggest asset thus choosing a location that’s lacking in required talent may be the start of your business’s downfall.
6. Potential for growth
Will the premises be able to accommodate resort growth or a spike in demand? Choosing premises is a big upheaval and can be time consuming and costly. Consequently, a location’s flexibility could be a very important factor regarding the premises’ suitability for your business needs.
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