We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Marketing

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

In Business, what does "Location, Location, Location" Mean?

Margo Upson
By
Updated: May 16, 2024
Views: 23,709
Share

The phrase “location, location, location” is one of the most important sayings in business. Location can help determine how successful a business may become, as customers need to be aware of a business before they can patronize it.

The physical location of a business may determine whether some businesses will succeed or fail. Plan a business in a busy area, with lots of potential customers walking by every day, and the business may do better. The history of the building is another factor. For example, choosing to open a restaurant in a space where several other restaurants have failed can negatively affect your business. The customer base already has negative associations with that location, and may be less likely to give your business a try.

It is important to carefully choose the location of your business for other reasons, as well. Find a community where you will enjoy spending most of your time, especially during the first few years as you build your business. Find a community that fits who you are, and what your business offers. If relocating to a new area to start a business, consider the available job market. It will be easy to find employees in a college town, or an area with high unemployment rates. However, these areas may not be best for business, depending on what you are offering. A high-end retail store may not do as well if the local population is facing financial problems. On the other hand, a used bookstore may do very well.

Choosing the types and positions of marketing that a business will use is another important aspect of location. Positioning advertisements where the target customers will see them is essential to building a successful business. This might mean a billboard overlooking a busy highway, or a series of radio and TV spots. Internet ads can build the business of an online-based company. Advertisements are a businesses way of reaching out to potential customers. These advertisements need to be in a location that people can easily see.

The importance of location cannot be overlooked when planning to start a new business. Paying extra for a great location may be harder to do at first, but the extra business will make up for the higher payments. The same goes for the more visible, and more costly, advertisement spaces. The success of a business is largely determined by its accessibility to the public. The more people who are aware of your business, the better income potential it will have.

Share
SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Margo Upson
By Margo Upson
With a vast academic background that has ranged from psychology and culinary arts to criminal justice and education, Margo Upson brings a wealth of knowledge and expertise to her role as a SmartCapitalMind writer. Her wide-ranging interests and skill at diving into new topics make her articles informative, engaging, and valuable to readers seeking to expand their knowledge.
Discussion Comments
By sneakers41 — On Jan 19, 2011

Sunshine31-I totally agree. You also have to look at previous businesses that were in the shopping center and why did they fail.

Sometimes businesses fail for other reasons than location, but if you notice that a large number of businesses that failed in the same shopping center then I would say it is probably certain that the location had something to do with it.

Not too long ago there was a supplemental education franchise that went out of business because it was hidden in the corner of the shopping center and not visible from the street. Although it was located in a major thoroughfare its location was hidden and the name was only visible by the marquee.

The business had a great concept, but as great as it was it could not bring in any traffic because its location was so poor. I was surprised too because this was a franchise and often they help their franchisees find the best locations in order to ensure their success.

Other businesses in the same shopping center closed as well including a Blockbuster Video store.

By sunshine31 — On Jan 16, 2011

Crispety- That is so true. There are many little shops in South Miami that have closed down for this very reason.

The problem is that these businesses often have no parking and customers have to find off street or metered parking which is really a hassle because you not only have to find a spot to park in but you also have to make sure you have adequate change in order to avoid the $18 ticket.

The problem is that people in Miami are used to suburban locations with plenty of parking, but these pockets of town that are urban are more inconvenient if you drive and everyone in Miami drives because our public transportation is not the best.

But in New York City, most people do not drive and the lack of available parking there is not an issue.

By Crispety — On Jan 16, 2011

The location of a business really determines its future success. Not only does the business have to be highly visible, but it has to have accessible parking.

Many times businesses fail because of their lack of parking. If consumers feel that accessing the business is inconvenient then they will not bother. This is what happened to a local furniture store in my area.

It was in an awkward location and difficult to find parking. Those two things really were the nails in the coffin for this business.

When you scout locations for a new business you really have to think like a customer because no matter how good your product or service is if customers can’t see your storefront or find adequate parking you are doomed.

There will be no promotion in the world that will save you.

Margo Upson
Margo Upson
With a vast academic background that has ranged from psychology and culinary arts to criminal justice and education,...
Learn more
Share
https://www.smartcapitalmind.com/in-business-what-does-location-location-location-mean.htm
Copy this link
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.