Business Premises

[simonella]

What would be more important on a decision pertaining to the geographical residency of a business;
1 Good location with high rental and low marketing cost or
2 Not as good location as above with low rental and higher marketing costs

[Oki-Des]

To me it would depend on the type of business you are running. But, from the limmited information given I would I would suggest moving into a cheaper location. This is because in the beginning of any business money can be tight. If you are locked into a lease you cannot do anything each month except pay the large amount required. But, if you are in a cheaper location you can choose to advirtise when you have money to do so. You can also always resort to less expensive advirtising if need be, newspapers, billboards, word of mouth, etc. But you can not do anything to save on rent once locked into a lease. In the beginning always try to save as much as you can and do not lock yourself into anything long tern that costs a lot of money. As long as your overhead is low you will be able to continue forward through the possible difficult times typically associated with starting a business. Good Luck!

[gixxerboy1]

Better location. You ever hear the term Location Location Location.

Marketing isnt cheap and it may take a long time to find effective parketing stratagies.

[PROTEINSHAKE]

brick & mortar stores or businesses success & failure are directly related to LOCATION & PARKING.imo

[Oki-Des]

Location, location, location is a term from many decades ago. In the past location was the primary concern. Now, with the internet and ease of transportation, location is no longer the end all beat all savior to a poor plan. As I stated, more information would be helpful, but I would be cautious about spending too much on location alone. Even a good idea can fail if you spend too much on overhead before being able to sustain yourself.
One example is that if you are selling a product that appeals to college kids and live in a college town, the best location location location may not be in the center of town; even though this may be the highest cost. If your product appeals to college kids, then the location next to a bar may be most visible and cheap as more upper class places would not wish to be there. Many factors come into play, but I certainly would not take a majority of what I thought I had to invest and sink it into location.

[Prada]

To many factors involved to answer the question.

[gixxerboy1]

Location, location, location is a term from many decades ago. In the past location was the primary concern. Now, with the internet and ease of transportation, location is no longer the end all beat all savior to a poor plan. As I stated, more information would be helpful, but I would be cautious about spending too much on location alone. Even a good idea can fail if you spend too much on overhead before being able to sustain yourself.
One example is that if you are selling a product that appeals to college kids and live in a college town, the best location location location may not be in the center of town; even though this may be the highest cost. If your product appeals to college kids, then the location next to a bar may be most visible and cheap as more upper class places would not wish to be there. Many factors come into play, but I certainly would not take a majority of what I thought I had to invest and sink it into location.

THat still fits location location location. THats a prime example

[Oki-Des]

Yes, but location does not have anythign to do with the price of the location. In any specific situation the most appropriate "location" will change depending on the situation. Maybe if we had some more information we could answer this question appropriately. After all, I am simply the CEO of a multinational medical device manufacturing company. I may not be qualified to properly answer the question if we are talking about opening a pizza shop.

[gixxerboy1]

Yes, but location does not have anythign to do with the price of the location. In any specific situation the most appropriate "location" will change depending on the situation. Maybe if we had some more information we could answer this question appropriately. After all, I am simply the CEO of a multinational medical device manufacturing company. I may not be qualified to properly answer the question if we are talking about opening a pizza shop.

Your correct the best location may always not be the more expensive location. But the way her wrote it was the better location (which i took was based on his business needs) was more expansive then location b (which wouldnt be as good for HIS business).

But hey i'm no ceo. I'm only a DM for retail company

[Oki-Des]

I agree. I simply pictured a person with a certain amount of money and wondering where to set up shop. With this in mind, I then imagined them considering starting a business and looking for a location. I know that most businesses will require more money than originally thought and imagined them dumping everything into the place, thinking they will quickly begin to earn enough to maintain the location.
Because this question was even asked, I felt it would probably be better for them to start small and cheap, even in there own home if possible keeping overhead low. Most businesses fail in my opinion because of lack of capital to maintain; until things pick up. I would personally rather have a worse location and have some money to spend on trying to get them in the shop, than to be in a good location and hope customers just come in. But then again, it completely depends on the type of business they are trying to start.
There is really no wrong answer here as we have no idea what type of business we are discussing. Even if we did, there would still be disagreements. But if you ask me, I would always suggest spending less. It is in my nature.