5 Interesting Facts About Choosing a Business Location That Many Entrepreneurs Overlook

Have you ever wondered why some culinary businesses are always packed, while others remain quiet—even though the food tastes just as good?

The answer often lies in one simple factor: how to choose the right business location.

A location is not just about being “next to a main road” or “where lots of people pass by.” 

It goes far beyond that. If chosen correctly, location can make your business easier to recognize, more efficient, and give you a competitive edge.

Here are 5 interesting facts that many entrepreneurs forget when selecting a location:

1. Strategic Location Must Match Target Market

Many people think: “A crowded place is always good.” Not necessarily. A busy location isn’t effective if it doesn’t align with your target market.

• For example, if you want to open a trendy coffee shop, a spot near a campus or coworking space is much more relevant than an upscale residential area where people rarely hang out.
• A common mistake: rushing to rent space on a big street without checking who actually passes by—it may not be the customers you want.

So, choosing a strategic business location means first understanding your customers: who they are, where they spend time, and how your product fits their lifestyle.

Read Also: Customer Retention Is Key to Business Success, Here's How to Improve It!

2. The Right Location Can Save Promotion Costs

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Ever seen a small restaurant tucked in an alley that’s always busy, even without flashy ads? That proves the power of location as “natural promotion.”

• A highly visible spot automatically promotes your brand to passersby.
• You don’t need to spend as much on banners or paid ads if your location already attracts attention.

A strategic location helps you cut down marketing expenses and maximize organic exposure.

3. Location Can Determine Consumer Behavior Patterns

Source: istockphoto

Location doesn’t just decide who comes but also when and how they buy.

• Example: a sandwich shop near an international school will mostly get students and parents needing quick meals during lunch breaks or pick-up hours.
• A shop near office districts will be busiest during mornings and lunch—not evenings.

By understanding these patterns, you can adjust opening hours, menu, pricing, and other strategies to better match your customers’ daily habits.

4. Easy Access is the Major Attraction

Even the most expensive location won’t work if it’s hard to reach: narrow roads, limited parking, or far from public transport.

Good access means:

• A clear entrance
• Sufficient parking space
• Easy to find on maps
• Convenient for public transport users

Hard-to-reach locations discourage customers before they even see your menu.

Read Also: Looking for a Food Slogan? Here Are 75 Trendy Slogan Inspirations for Your Business

5. Location Can Shape Brand Image

A brand is not only built through products or service—it’s also shaped by location.

• A café in a premium area will instantly feel higher-end in the eyes of customers.
• But if you pick a poor location, even with great products, customers may assume your brand is “cheap” or low-quality.

The right location reinforces your brand message, making it more appealing and consistent with customer expectations.

Extra Insights from Research

According to business site selection research, other important factors include:

• Demographics & Target Market: age, income, spending habits
• Rent, Taxes & Overheads: a high-rent spot must be justified by strong visitor traffic
• Competition & Complementary Businesses: being near similar or complementary shops can bring more customers through “spillover.”
• Regulations & Zoning: parking, signage rules, or neighborhood restrictions may affect your operations.

FAQ – Common Questions About Choosing a Business Location

1. Why is location so important?

Because it affects visibility, customer access, marketing costs, and overall brand perception.

2. Is a busy location always good?

Not always. Crowds without the right target audience can increase costs without driving sales.

3. How do I check if a location fits my target market?

Run a small survey: observe passersby, check demographics, spending habits, and compare with similar businesses nearby.

4. How important is access to the location?

Very important. Easy parking and good transport access can be deal-makers for customers.

5. Should my location match my brand image?

Yes. Customers form perceptions of price, quality, and exclusivity partly based on where your business is located.

Conclusion

After exploring these facts, it’s clear that choosing the right business location is not a trivial matter. A strategic location lays the foundation for success: saving costs, streamlining operations, and building a strong brand image.

But remember: a good location alone isn’t enough if your operational system doesn’t support it. To make your business run smoother, more digital, and ready to compete, you need reliable systems.

ESB provides complete solutions: POS systems, inventory management, order processing, sales reporting, and operational integration.

Contact the ESB Team today to discover the right ESB solutions for your business. With the right location and strong systems, your venture can grow faster and smarter!