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Starting a business can be an uphill task. It is more challenging when you need to have a physical shop, outlet, or showroom. Several factors will need to be considered to choose the perfect business location for your business. Although no location in Nigeria can pass as the perfect location for your business, certain places can be fair enough to allow your business to thrive.

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As you read through, I will show you important factors you should consider before you settle for a particular location for your business.


The first step to choosing a business location is to understand your brand and the image you wish to portray. Your brand image will determine if you even need a physical store at all, or you can make do online. Check the surrounding you are considering. Will it portray your brand in a good light? Or will it degrade your brand?


Before you site your business, you need to understand the category of people in the area; age, sex, gender, etc. These factors will determine if that area is your best bet. Imagine selling baby things in an area that is predominated by aged people. What are you planning to achieve? It will be a flop. You need to understand where you are and if your business will be useful to them in the long haul.


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This factor is more of a “selfish” one, I must say. This is because, even if you have a good market that will buy your product, if you are not comfortable, it will tell on your business. Is the environment neat? Is there access to electricity and water? Are the roads motorable? These are things you need to put into consideration before you move your business to such an area. For instance, if there is no access to electricity, and you have a business such as a frozen foods business, you might be spending more than your revenue on generator fuelling, at the end of the day.

Competition/Complementary business

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Competition is everywhere. It now depends on how you deal with it. And one of the ways to deal with it effectively is to choose right when it comes to location. Siting your business close to your competitor can be advantageous for your business. This is because customers are likely to patronize you if they don’t get what they want in your competitor’s outlet. Also, you can sell a complementary product, next to another business outlet. For example, you could sell stationary close to a printing and photocopying shop. This will help pull the traffic of another business to yours.

Choosing the right business location can go a long way to helping your business grow. However, if not done the right way, can seriously mar your business. So do your research properly, and with these few tips, I’m certain you will be making a better choice soon.

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This article was first published on 11th May 2022


Chidiogo Shalom Akaelu holds a degree in English and Literary Studies, from the University of Nigeria. She is a freelance writer, editor and founder of Loana Press, a budding online publishing outlet.

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