Introduction:
Opening new premises plays a significant role in a business. Your business needs to be where your customers are. A new premises helps to expand the business operations further. It increases the visibility among the customers
Visibility of the business is not only good for the sale of the product, but it will help to make a mark in the eyes of the customer
The location of the new premise depends upon various factors like cost, availability, and accessibility by the customers.
Some factors play a significant role In the decision of the location for your business.
Accessibility:
The location of the new premise should be close to the market as it is easy to fulfill the need.
When a business is close to the market, it is easy for them to know the market trends and the demand of the customers.
It is easy to fulfill demand as quickly as possible when you save by being closer to the customer.
Some industries react to market accessibility in a better way than others.
Hotels, restaurants, and multiplexers depend upon the location More than someone who has a business in furniture manufacturing.
Services-related industries are likely to be concerned about the location to reach their potential customers.
Synchronization:
Organizations on a large scale want to manage their resources as efficiently as possible.
It is necessary to have the whole process in synchronized way.
When an organization wants to start a new establishment like a factory, they want to open a factory near the old establishment.
An organization looking forward to acquiring a warehouse wants the warehouse to be near their showroom as it reduces the transportation cost and helps fulfill the demand quickly.
Availability:
Availability of required essentials is another aspect in determining the location of the new premise.
The organization needs to identify their requirement, as for the organization dependent upon technology, they need to have skillful labor.
Whereas the organizations depend upon more labor-driven, work needs to have unskillful personnel.
The organization needs to have the cost element in its mind as per the requirement. The cost of resources mainly changes with the change in availability and nature of the task.
Expenditure Or Expense:
Whether to go with expenditure or expense is yet another aspect when deciding on the opening of a new premise.
A business looking forward to buying a place for their business wants the value for that premises.
An organization can have two types of costs while selecting the premises for their business. Either it could be the price of the establishment acquired or as an expense in the form of rent.
Companies looking forward to long-term Operations and don’t want to commit hefty amounts to acquire the place take the lease route.
Facilities:
Businesses need some unavoidable facilities.
These facilities add value to the organization by reducing the cost or by enhancing the product or service. One such service is transportation.
Transportation plays a significant role for every business, and when an organization is operating in two different places, it becomes a crucial part of the business.
Efficient transportation options help the organization bridge the distance between the two establishments of the same organization.
Businesses need some services for the proper functioning of the organization.
Each industry requires a Different set of facilities.
For example, a Factory requires electricity, water, gas, and raw material.
Rules and Regulations:
For the proper functioning of an organization, they need to follow all the rules and regulations associated with its business.
It will keep them away from any legal difficulties, and following the rules can give them some relaxation.
The site selected by the business owners should fulfill the rules and regulations required in that locality. The organization should carefully study and may take legal help if required.
Safety Precautions:
Those organizations working with an element of risk for employees or the general public should prepare safety measures.
To safeguard the public interest, organizations with such risks should operate remotely.
While the employees they should follow all the precautionary measures like updated machines and tools to Employees. Organizations should prepare funds like workmen compensation funds for future uncertainties.
Flexibility:
Flexibility plays a significant role in providing the best possible product to their customers.
Flexibility helps to cater to the audience for their satisfaction.
It helps the organization to increase their market share to earn profits and future-proof their business.
Flexibility could be mainly of two types:
