Securities Market Line

Nature of Business
It is often seen that similar types of business entities are located in a common business area. Eg. Businesses dealing in jewelery manufacturing or women’s wear manufacturing are usually located in places similar to their business competitors. Similarly, you may observe that wholesale businesses are usually located in particular town or a particular suburb of an urban area only.

Availability of Facilities
A business cannot work smoothly without steady availability of facilities such as water, electricity and air-conditioning and communication systems such as Internet and telecommunication. All these or some more special facilities need to be available so as to make a business location ideal.

Location of Suppliers
A manufacturing or processing business cannot run without a steady supply of raw materials from the suppliers. To ensure a smooth and unhindered supply of materials, businessmen opt for locations very close to their suppliers. Eg., A dairy business is ideally located near the pastures, a food preservation and packing business is located near the place of cultivation while fisheries business is usually located in coastal towns only.

Business Zones
There are, at times, some business zones restricted for a particular type of business by the government. These businesses are issued licenses provided they operate from these specific locations only. At such times, a businessman has no choice but to opt for a location within the business zone. If a businessman fails to abide by these zoning restrictions, his business licenses may get confiscated.

Infrastructure
It is important that the business location is well connected by a good infrastructure. What is the use of a high investment on purchasing a business premise, if the business clients, suppliers and employees face a problem in approaching the business premises?

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