Selection of Business or Factory Location

Selection of Business or Factory Location:
While making a decision about the place where the factory/business is to be set up, mentioned points should be carefully considered:-
Availability of Land:
After determining the size of the proposed factory building, it would be better to
choose a location where there is a space for present factory as well as for future expansion.
Raw Materials:
Raw material is the vital factor and it plays a significant role in the selection of
site. The question of raw materials is important, especially where the raw
materials are either bulky or heavy and where transport facilities arc available.
Power Resources:
Where the manufacturing processes require enormous supply of power, it is
better if the factory is located very near to the sources of power, viz electricity,
gas etc.
Labor:
In every manufacturing industry labor is essentially necessary to a great extent,
and factory should be located where supply of labor is abundant (especially of
required skill).
Capital:
The capital is necessary in each industry. Therefore, the site of factory if selected
near the town and cities would be more advantageous. Big cities and towns
provide sources of raising the required capital.
Marketing:

The closeness of target market to the planned location of a business should be
considered the marketing facilities of the finished goods should be carefully
considered specially distribution and retail networks.
Transport:
The cheap and efficient movement of transport for bringing raw material and
disposal of finished goods are important in locating the site of factory. Hence
access to rail, road and air transport must be considered.
Govt.Laws:
The selection of location is dependent on several type of laws affecting business.
These include labor laws, tax regulations, property registration, product safety Utes, environmental laws etc.
Climate:
Some industries arc seriously affected by climate and change in weather, The
climate feature should also be kept in view while selecting a location.