Business Location Selection

Business Location Selection

A very first step after finalising your product is selecting factory location. There are many factors you must consider.

Rented/Own Property:

If you are new in the selected business, you don’t own any industrial property, and you are thinking to buy land, build the infrastructure, and then start production, then maybe you are making mistake that can never be repaired!!!

Its very time consuming. Starting construction to machinery installation takes very long time, however one can start production in rented/leased property immediately.

When you are new in business, you must have enough working capital in hand to face initial struggling period. Don’t lock your funds in infrastructure and other things. Rather put those funds into business so that you can work more effectively.



While selecting the business place, always check the resources according to your production requirement.

For ready possession property check the sanctioned electricity load, water supply line, storage capacity etc.

If you have to make changes like extra load/water supply line/storage tank, then see its not going to take more time or money. Otherwise go for another option


Available services:

After starting production, if there is any technical issue, and you have no option available nearby, first of all, the technician who is coming from somewhere else will take more time with extra service charge.

Same thing happens in case of transportation. If transport vehicle is coming from another place, they will charge more which will affect your production cost.

Availability of workers is also a major factor. Generally, there are labour contractors available in industrial areas who supply workers and take responsibility of them. So, check for workers availability before finalising the place.

Therefore, avoid starting business in remote area. Always prefer Industrial Area or Industrial complex to start new business.


Machinery Installation Planning:

Make imaginary picture of your production unit, Finalise the machinery positions. You need to study deeply. Better you take help of experienced person for that. If you have MME Project Report with you then you are all set, because we give you proper plan and ideal machinery positions.

Electrical connections and water supply arrangements are supposed to be done according to machinery positions. So, better you take help of experienced person or MME Project Report.


While choosing business location, always think about market places. Actually, that depends on your product and nature of business.

For products which are hard to transport on long distances, your production unit must be located near market place.

For products, which are having market all over the country, or those are easy to transport, production unit must be located near transport resources.



Leave a Reply