September 13, 2009

Location location location!

So where are you starting your business? Have you given it some thought? Do you realize that the difference between success and failure can be where you start it all up?

Deciding an optimum location for the business is a strategically important one. A good location goes a long way to making the business successful and needs to be carefully chosen.

Some places have advantages over others. You can save on taxes, water and electricity costs if you are located in some areas. The raw materials can be easily sourced, the manpower would be easily available and you can save out on transportation costs in case of certain locations. Setting up a business in certain location could lead to subsidy and rebates from the Government.

In the case of a retail business one needs to be located in a well populated area and one which is easily accessible.

There is a very specific reason I did not move out of Cape Town to another city after graduation. Although Johannesburg is typically seen as the hub of business activity in South Africa, I see huge potential here in Cape Town, even for non media based businesses.

Firstly, I believe I live in one of the most beautiful cities in the world, as I’m sure most of you will agree when looking at these pictures taken with my phone camera:

Stellenbosch at Dawn

Stellenbosch at Dawn

Strand at sunset

Strand at sunset

Cape Town and Table Mountain

Cape Town and Table Mountain

Although these are just pretty pictures, they indicate more than just beautiful views. Its an indication of the quality of life and overall happiness of the people staying in the city. And thats real value to a business, whether you are looking for sales leads or quality employees. I’ve been to Johannesburg’s CBD, and I was not impressed. Most of those people are in such a robotic ┬ástate that they have long since forgotten about the power of creativity and thinking outside the box – its like they are in autopilot mode.

There is another reason I am starting my business in Cape Town. When I graduated from university after studying engineering here, I thought it would be easy to get a job straight afterwards. After much searching and deliberation, I had to move to a nearby town just to start work! Whats worse is, many of my engineering graduate friends were unable to find a job in Cape Town, and many of them were forced to simply study further or move all the way to Johanesburg to work.

There are plenty of very smart people in Cape Town that are forced to move out of the city just to find work, especially so because of the financal recession. With my technology business in Cape Town, I’d be tapping into the vast diversity of people in this city, as well as accessing a niche that has not been tapped here before. Added to the fact that the average employee salary is lower here than up North and office space is cheaper if you look at the right areas, its definitely my location of choice… even if this city is mostly only known for its media and tourism hotspots.

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  1. David Kruyer September 14, 2009 at 11:19 am

    Having being based in Cape Town and in business for 22 years, makes me biased, but i agree wholeheartedly, it is one of the most beautiful cities in the world, and the perfect place to launch a National or International business, short of being in the Maldives or the Bahamas.Location exposure is also important but not critical, however, it would be advantageous to have ones physical premises bordering a main arterial or busy access road for visual recognition.Rememberace is in the eye of the beholder.Namaste!

  2. ceo September 17, 2009 at 8:59 am

    Thats a really good point David. One must maximize exposure to customers at all times.

    Its similar to the concept in Internet marketing when a business’s site needs to have its online presence on a main online arterial – a big news website, search engine adverts or similar.

  3. David Kruyer October 9, 2009 at 10:57 am

    “Arrangements carry more conviction when supported by tangible evidence of benevolent intent.”

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