The ideal location should be convenient for your customers, employees and suppliers - within a manageable budget. It is a balancing act considering the above factors.

Location can make or break your business. Start your retail outlet in the middle of nowhere and chances are you'll see just your employee's face more than that of your customers.

Location for a business is a critical factor that creates an image of the business and it determines the success of the business. A business should run in a location from where it can attract its potential customers. The key to success rests in the selection of a good location that has a significant amount of consumer traffic. By contrast, a manufacturer needs to be located closer to suppliers and modes of transportation. 

Several different types of location decisions need to be considered before selecting the specific area for your new enterprise. Your decision will vary depending on whether the business is a service or a manufacturing venture. Consider the following when choosing a business location: 

Taxes. The differences in state laws on taxation makes some states more attractive than others. Take the case of Ruth Ellen Miller, President of NOUVIR, manufacturer of stone-cold and pure-white fiber optic light. She decided to move her business to Delaware to escape the high taxes in California. While taxes are an important factor to consider in locating your business, there are instances where you may be better off paying higher taxes and selling more goods for a higher price. Choosing a location oftentimes is a compromise between tax relief and potential for profit generation. 

Costs. Shopping malls are oftentimes the best location for a business, particularly retail and service-oriented businesses. The trade-off, however, is the high rental price of locating in a mall. Entrepreneurs may be forced to go where they can afford the rent or where they can operate more efficiently. 

Security. The quality of the neighborhood also greatly affects the decision of where to put your business. Many businesses avoid certain areas of a city because they fear for their safety and property. Make sure that you check the crime rate of the area. If an area is notorious, customers might be leery to drive to these types of locations. Choose a site where you and your customers will feel both comfortable and secure. 

Availability. Many entrepreneurs locate where there is available space at the time they wish to open. Expediency does have its virtues, but consider the long-term effects of your immediate decision. Don't be shortsighted. Is this the best location for your business? 

Infrastructure. Sometimes location decisions are based on selecting an area where there are many business professionals to support entrepreneurs and serve their continuing needs. For example, computer businesses often locate in the same area where materials and parts are readily available. 

Personal considerations. The location of a business may depend on how far you want to drive to and from the business each day. Family commitments may prohibit you from locating in a more desirable area that requires considerable driving time. Your personal happiness is an important factor in selecting a location.

You may not want to be too near your competitors, though clusters of similar businesses sometimes attract more customers. Your neighbours and your location also affect your image.