Consideration factors for business location selection

1. Enterprises should be located close to the suppliers of product raw materials. Because this can save transportation costs and reduce costs.

2. Choose a place where the consumer market for the company's products is concentrated. Concentration of the consumer market will make the company's products easier to sell.

3. Choose a transportation hub that is convenient for transportation. Transportation is very important for enterprises. If transportation is inconvenient, it is likely to delay shipments and increase costs.

4. Enterprises can choose places with sufficient energy. If the enterprise uses a lot of electricity, the price of electricity will be relatively low in areas with abundant energy.

5. Choose areas with rich labor resources. Labor is a necessary production relationship for enterprises. Without cheap labor, enterprise costs will rise, and there may even be cases where workers cannot be recruited.

6. Enterprises can choose parks with preferential policies. Many areas have preferential policies, mainly to support better development of enterprises and provide certain tax rebates and tax reduction policies for enterprises. Operating in such a place reduces the tax burden a lot.

Extended information:

Notes:

1. The factors listed must be carefully weighed to determine which ones are closely related to the location of the facility. Which ones are related to business operations or operating results, but have little to do with the location of facilities, so that we can prioritize and grasp the key points when making decisions. Otherwise, sometimes there are too many influencing factors listed, and it is easy to not distinguish the priorities when making specific decisions, and the best decision cannot be made.

2. In different situations, the same influencing factors will have different effects. Therefore, any principles and provisions must not be copied mechanically, nor should existing experiences be completely imitated. Finally, it should be noted that the influencing factors to be considered and the importance of the same factor may be very different for manufacturing and non-manufacturing companies.

3. In site selection decisions, some industries focus on market factors, such as some industries that have higher requirements for after-sales service, strong timeliness requirements, and a large proportion of transportation costs. As far as the warehousing and logistics industry is concerned, site selection must take the service target demand of the warehousing and logistics center as a constraint, establish a site selection model, evaluate factors such as transportation convenience, and complete investment site selection.

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