Cost of Site
Name one major expense when choosing a business.
Buying or renting land/buildings.
Example of transport costs?
Fuel, vehicle maintenance, shipping costs etc.
Type of infrastructure businesses need?
Roads, electricity, water, internet.
Name one government incentive for businesses.
Tax, loans
What is market potential?
The number of potential customers and demand in an area. (alternative answer)
Why might a retailer pay more for a central location?
Densely populated with customers, more accessibility.
Why be near suppliers?
Reduces delivery costs, saves time.
Why is good infrastructure important?
Smooth operations, communication, efficiency.
How can tax rates affect a business's location choice?
High taxes increase costs, low taxes reduce costs.
Why do service businesses care more?
Rely on local customers visiting frequently.
How can the price of land influence long-term business costs?
Increases fixed costs, affects profitability.
How can poor transport links affect deliveries?
Delays, higher costs, unreliable.
How can weak infrastructure increase costs?
Delays, higher maintenance, more breakdowns.
How can rent or property costs affect location choice?
Higher rent increases costs so business choose cheaper areas to save money.
How can customer numbers affect location choice?
More customers means higher sales and more revenue.
Why choose a slightly more expensive site?
How do transport costs affect total running costs?
Greater transport costs increase overall expenses, reducing profits.
Why pay more for better infrastructure?
Reduce future potential problems, improve productivity.
Why consider incentives and taxes together?
They both impact the overall costs so combing both helps make a better decision.
Why do businesses prefer less population but a high spending area?
Customers spend more money when shopping so there is an increase in profits.
How can location size and layout affect costs?
Costs more to develop, maintain, use efficiently.
How can location near customers reduce transport costs?
Faster service, less fuel consumption, shorter delivery routes.
Why would a business choose a modern type of infrastructure?
New technologies, faster communication, higher production.
How can operating costs influence operating decisions?
High costs for rent, utilities, and wages may make some locations less profitable.
Why does a business choose a location near other similar businesses?
Being close to competitors can attract more customers, increase competitiveness.