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The importance of your business location

Ask any business owner what their most important requirement for industrial premises is and most time you’ll hear the old adage, “location, location, location”.

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iStock

When searching for your next industrial space, make sure you speak to the experts who can advise on this. Ithala Development Finance Corporation are experts in this field and can help with all your requirements as well as advise you on your business location.

So why is location so important? A location could determine your market, it could determine your workforce and it could determine your costs and profits. All of these factors have a massive impact on your business and its success. This is why you need to ensure you choose the best possible location for your business and ensure its growth and profitability.

Here are a few things to keep in mind when choosing your location:

1. Demographics

Determine what the demographic is of the area and will it have any impact on your business. Do you need industrial property where customers are able to come to your premises and purchase? If so, the demographics in your surrounding area is of utmost importance. Ensure that the demographics match your market and achieving your sales will be that much easier. Also, consider foot traffic. Is your business of such a nature that foot traffic will help sales? If so, you would need to find a location which meets these targets. Also, keep in mind that your staff will probably come from the surrounding area. Are there enough people in these areas to meet your human resource needs and will staff have access to good schools, public transport and good amenities? 

2. Transport costs

If your business isn’t a customer facing one, but rather a delivery based one, then location remains important. Delivery of goods costs money, and with the rising cost of fuel, you need to make sure you are able to keep your transport costs down. A location which is more central to delivery areas would keep costs down and save valuable time. While it may not mean more money in your pocket, it does mean a lower expenditure and more savings.

3. Good neighbours

Investigate your neighbours. No, we don’t mean spying on them, but rather know who your neighbours are. Will they be your competition, and if so, will it be good competition? Being close to your competition is not necessarily a bad thing. You could catch customers looking for competitive pricing, as well as customers trying to find all they need in one area. Note also that these neighbouring businesses are all potential customers. Perhaps do some research into what their needs are, and if you are able to meet them, your close location could reflect a favourable price point which they could take advantage of. Ideally, you want neighbours who can help your business rather than hinder it. Ensure that you won’t have any hassles with other companies using any shared parking, or with delivery trucks parking in front of your buildings. These are time-consuming hassles you’d rather not be saddled with. 

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Ithala Development Finance Corporation

Ithala Development Finance Corporation has a portfolio of properties in various KZN locations to suit your needs. Choose from developments such as Pinemead Park, Paramount Park and Umlazi Retail amongst others.

Let their friendly and professional service help you make the decision your business needs. Visit www.ithala.co.za for more information.

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