In Business, what does "Location, Location, Location" Mean?

Margo Upson

The phrase “location, location, location” is one of the most important sayings in business. Location can help determine how successful a business may become, as customers need to be aware of a business before they can patronize it.

The location of a business to competitors can help determine its viability.
The location of a business to competitors can help determine its viability.

The physical location of a business may determine whether some businesses will succeed or fail. Plan a business in a busy area, with lots of potential customers walking by every day, and the business may do better. The history of the building is another factor. For example, choosing to open a restaurant in a space where several other restaurants have failed can negatively affect your business. The customer base already has negative associations with that location, and may be less likely to give your business a try.

Location is of great importance in the success of restaurants, as there is usually competition from other restaurants.
Location is of great importance in the success of restaurants, as there is usually competition from other restaurants.

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It is important to carefully choose the location of your business for other reasons, as well. Find a community where you will enjoy spending most of your time, especially during the first few years as you build your business. Find a community that fits who you are, and what your business offers. If relocating to a new area to start a business, consider the available job market. It will be easy to find employees in a college town, or an area with high unemployment rates. However, these areas may not be best for business, depending on what you are offering. A high-end retail store may not do as well if the local population is facing financial problems. On the other hand, a used bookstore may do very well.

Choosing the types and positions of marketing that a business will use is another important aspect of location. Positioning advertisements where the target customers will see them is essential to building a successful business. This might mean a billboard overlooking a busy highway, or a series of radio and TV spots. Internet ads can build the business of an online-based company. Advertisements are a businesses way of reaching out to potential customers. These advertisements need to be in a location that people can easily see.

The importance of location cannot be overlooked when planning to start a new business. Paying extra for a great location may be harder to do at first, but the extra business will make up for the higher payments. The same goes for the more visible, and more costly, advertisement spaces. The success of a business is largely determined by its accessibility to the public. The more people who are aware of your business, the better income potential it will have.

Location is important when developing parking lots.
Location is important when developing parking lots.

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Discussion Comments


Sunshine31-I totally agree. You also have to look at previous businesses that were in the shopping center and why did they fail.

Sometimes businesses fail for other reasons than location, but if you notice that a large number of businesses that failed in the same shopping center then I would say it is probably certain that the location had something to do with it.

Not too long ago there was a supplemental education franchise that went out of business because it was hidden in the corner of the shopping center and not visible from the street. Although it was located in a major thoroughfare its location was hidden and the name was only visible by the marquee.

The business had a great concept, but as great as it was it could not bring in any traffic because its location was so poor. I was surprised too because this was a franchise and often they help their franchisees find the best locations in order to ensure their success.

Other businesses in the same shopping center closed as well including a Blockbuster Video store.


Crispety- That is so true. There are many little shops in South Miami that have closed down for this very reason.

The problem is that these businesses often have no parking and customers have to find off street or metered parking which is really a hassle because you not only have to find a spot to park in but you also have to make sure you have adequate change in order to avoid the $18 ticket.

The problem is that people in Miami are used to suburban locations with plenty of parking, but these pockets of town that are urban are more inconvenient if you drive and everyone in Miami drives because our public transportation is not the best.

But in New York City, most people do not drive and the lack of available parking there is not an issue.


The location of a business really determines its future success. Not only does the business have to be highly visible, but it has to have accessible parking.

Many times businesses fail because of their lack of parking. If consumers feel that accessing the business is inconvenient then they will not bother. This is what happened to a local furniture store in my area.

It was in an awkward location and difficult to find parking. Those two things really were the nails in the coffin for this business.

When you scout locations for a new business you really have to think like a customer because no matter how good your product or service is if customers can’t see your storefront or find adequate parking you are doomed.

There will be no promotion in the world that will save you.

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