Factors to consider when locating a retail outlet

Factors to consider when establishing a retail outlet

• adequate capital to start the business
• the demand for the goods to be sold
• good management skills
• accessibility to the retail outlet for example is it close to the road so people can easily reach it not in some back alleyway
• target group of customers to be attracted
• competition from other retail outlets
• legal requirements to be met e.g. trading licences and health inspections
• experience in the line of business
• nearness to suppliers and wholesalers, water and electricity
• whether to buy, rent or build buildings
• the development potential of the area in case of future expansion plans
• nearness to customers
• labour required
• advertising costs involved
• storage facilities for the goods

To access more topics go to the Commerce Notes page.