How Important Is Location to A Business? Everything You Should Know

If you’re thinking about starting a business, location is very important. You may not realize this, but this is certainly the case. In this article, we’ll be running through how true this is, so keep reading.


Depending on where your business is, you might have to pay a range of taxes. This is especially true if you’re working in a country abroad. You should make note of the taxes per region as they can defer, especially if the country is huge as each state/province has its own laws.

The taxes imposed could be a burden on your business, which is why you should look at the location carefully. Of course, this shouldn’t be the most important point as otherwise, you may go to a location that has a horrible customer base, making your business suffer.

If your business is Australian, you’ll have to look for ABN registration and pay things like GST.

Does Your Business Look Good?

Let’s say you’re an interior design firm. Appearance matters a lot to you, which is why you’ve spent enough and more on your decor. This would be in vain if your office is in an area that’s not the best. Customers would not want to work with you as they’ll view you as unprofessional.

Your location won’t be the only thing that would influence this. The building you’re in would affect this as well. After all, if it’s torn down, you’d make a bad impression for yourself.

The Commute

You need to choose a location that’s easy to access. If it’s in a location that’s far away, you’re going to find it hard to get workers. They’ll not want to work with you due to the lengthy journey. This is unfortunate as there are enough and more competitors out there, so prospective employees would flock to them.

Not only should you be in a location that’s not far away, it should have ample roads leading to and from. This would allow multiple transport means to your office, which employees would enjoy.

Even if there’s enough and more roads, they shouldn’t be notorious for traffic. It’ll be hell on earth for your employees, otherwise.  

The above points aren’t just for employees. They’re valid for customers too. As you have a range of competitors, if you’re out of the way, customers aren’t going to think twice about working with you. 


Choosing your location wisely would influence how much you’ll be paying at the end of the day. If you choose a high-end, commercial location, you’ll be able to flex on your competitors. However, you’ll be paying a huge rent. If you’re a small business, this may not be what you want.  


Being a luxury clothing store, if you’re in the wrong location, you could have everything you own stolen. If you don’t have insurance, this would mean millions down the drain. This is why location is important as you’ll be able to avoid neighbourhoods that are known for criminal activity.

All in all, it’s easy to see that there’s a range of reasons why you should be mindful of where your business would be. We ran through them, so make note.