Factors to consider when selecting a business location in Kenya

by | Feb 15, 2016 | Business | 0 comments

Selecting the ideal business location in Kenya is guided by four main factors, namely;

1. Nature and type of business – The nature and type of your business are the single greatest determinant of where the business should be located. Businesses that rely on walk-in customers from the public are the most affected, the main one’s being in the service industry. If your business relies heavily on walk-in clients as opposed to businesses that prospect, then your location is everything. Getting your location wrong can spell doom for your business. In the restaurant business, for example, there are three “main” rules when setting up. These are, “LOCATION, LOCATION, and LOCATION.”

This example underscores the importance of a great location for restaurants. A study of McDonald’s reveals this to be true. Senior management at MacDonald’s will tell you that they are burger salespeople but their business is real estate. Therefore, businesses that rely on walk-in customers such as restaurants, cyber cafes, supermarkets, wines and spirits, bars and so on must be located in densely populated areas. In contrast, businesses such as legal firms, accountants, IT firms, Bank and Insurance company Head Offices and so on do need to be located in densely populated areas.

2. Budget – The amount of money you can afford to hire premises must of course come into play. Most first time entrepreneurs will be renting due to budget constraints. Always try and secure premises that provide the best value for your money considering the nature of business. As a general rule, if your business does not rely on walk-in customers, avoid Nairobi’s Central Business District and opt for cheaper offices in the city’s outskirts.

3. Space required – Certain types of business require very large amounts of space. For example, car dealerships require large space to park their vehicles. 

4. Special facilities needed – Certain types of businesses require special facilities to carry out their business effectively. For example, hospitals and clinics have special electrical, plumbing, and fire suppression requirements. These must be taken into consideration before settling on a business location.

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