Nature of location decision

                To start a new business, location is very important factor. Business location plays major role in growth of the business. Since every business wants to maximize the profit and minimize the cost, the location of the business should be such that it is convenient to both suppliers as well as to the customers. So, the business location should be such that where the customer as well as supplier’s market is easily reachable. If the wrong site selection is done, then it may lead to failure of the business.

               Plant location depends on the nature and size of the business. If any business is involving processes which may cause environmental pollution, the site suitable for such business is away from residential areas. If the business nature is perishable, then it must be nearer to both suppliers as well as customers. Similarly, if the business is of small size, the preferable location is nearer to the customers. Hence, the location plays an important role in business establishment.

Various factors as mentioned below are considered for deciding the plant location: -

(1) Economic consideration

(2)Supplier’s market availability

(3)Customer’s reach ability availability

(4) Rules and regulations (as per type of business)

(5)Government policies related to the businesses

(6)Support of local communities

              In order to provide maximum facilities to industries, Government has initiated to allocate 

speecified areas, known as industrial estates, industrial parks and special economic zones  (SEZ). By this effort of government, all industries get their supplier in nearer market as well as the customers are easily  reachable. This kind of Government s efforts is promoting the business and resolves the business location issues.