Location is one of the main fundamentals that really impact businesses. When a loan is applied for by a new business often financial lender will base a large part of their decision on loan approval on your choice of business location. Locations impact sales and marketing. An example of this is a business that sells new cars would not open out in the middle of the desert where no exposure is ever coming to the business.
A business would also never open a restaurant where there are 100 other restaurants selling the same food types. These type of choices would be bad choices. A loan institution would see this a sign of impending doom. The decision to market and open a business with small business loans needs to be yoked with a great demographic location.
Points to consider about business locations and Small business loans:
Demographics such as population and the need for your specific product, service or idea is one of the most pertinent concepts to consider before drawing up a business plan to get a small business loan. An idea, product, or concept will only sell if it is needed. Another concept is that an idea, product, or service will only be worth what the current market says it is worth in the geographic location.
An example of this truth is that a laptop would only be worth a dollar to someone who doesn’t need a laptop, but to someone who needs a laptop to conduct business its worth hundreds of dollars. Supply and demand rule location. Loan officers take into consideration these factors before offering loans and amounts. Population also is another factor to examine. If there is not a substantial amount of population that will utilize your service, product, or concepts then you are what they call,”dead in the water”. It is very important to know that there are enough people who will purchase and repurchase your concepts, products or services.
Small business loans take this concept very high into the equation when considering loans, amounts, and rate of payback.