The importance of location for SMEs

The location of a business is vital for a number of reasons, but a new study has suggested it may be even more important than was previously thought.

 

In a survey looking into working locations from OnePoll for ClickSoftware, it was found that 57% of UK workers think location is the overriding factor in keeping them in their current role.

 

This was more influential than the wages on offer or job security, highlighting why small businesses need to ensure they pick their base of operations wisely.

 

The survey related the importance of location to workplace productivity and found that one in five people think their productivity falls as a result of being in a bad location.

 

For firms this is significant for two reasons – not only does it mean that less work is being done but it also potentially means that sales opportunities are being lost if a firm is poorly situated.

 

In the latter case, this could impact on the bottom line of the firm if finances are not readily available, as is often the case with smaller companies.

 

The situation was particularly apparent in London as more than a quarter of staff said their productivity would suffer if based in an inadequate location.

 

It was not all bad news for businesses in the south though, as employees in the South-East were found to value the location of their job more than anyone else.

 

Relocating a business is no easy task but it may be beneficial if boosts productivity and drives sales – especially among small firms that are chasing success.

 

It is not without risk though, and business restructuring might be a better option in some instances to streamline business finances and enhance its management structure.

 

Location was found to be a major issue for younger workers while 67% of people in the survey said they left a role, or considered leaving, purely for a change of scenery.

 

This showcases the importance of having office or working environments in locations where people want to work – a failure to do so could cause many issues for a company.

 

By Phil Smith

 

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