Location and competition

Location is the place a business trades from and how easy it is for customers to reach it. It can be a strength or a weakness for the business, especially when customers must visit in person.

A convenient, accessible location is a strength. If customers can reach you easily by bus, train, car or on foot, more of them are able to visit. For example, a day nursery on a main road beside a train station and a car park with space for drop-off is easier for parents to use than one on an industrial estate with a single bus an hour.

A poor location is a weakness. A site that is hard to find, or that has no parking or poor transport links, can put customers off, so fewer people can or will visit. The same nursery would struggle down a back street with no signs, because parents in a hurry may drive past and go to a different one instead.

When location matters most

Location is particularly important for businesses that rely on customers visiting, such as a soft play centre or a garden centre. Online selling can reduce the importance of a physical location: an online-only bike shop can trade from a warehouse because customers order from home and have products delivered.

Competition and location

Competition can affect location decisions. A business may choose a site that is convenient for customers, near transport links or parking, to make visiting easier than going to a rival. It may also avoid being too close to a stronger competitor, because customers may compare the two directly and choose the better-known business. For example, a new nursery might open on the opposite side of town from a large chain nursery, close to a station, rather than in cheaper premises next door.