If you plan to set up a shop to manufacture a product, you will want to consider your accessibility to suppliers and to transportation for reaching customers. Shipping charges can add up quickly. If you're looking for a shop customers will visit, then you should do a careful demographic study of population statistics, labor force availability, per capita income, education level, and other important statistical information, which is available from the library, the chamber of commerce or census records. It depends on your business and the demographics working for and against you. If, for example, you want to open a car dealership, you may find it wise to set up shop beside your competition.
Automobile dealers locate together to take advantage of one another's customer traffic.
If your town has a dealership mall on the east side of town and you set up on the west side, not only will customers ignore you, since you're not convenient for comparison shopping, but you also will emphasize your size. Look at leasing. If you're thinking of leasing a facility for a business with customer traffic, do a careful study of that space first. Sure, there may be a busy grocery store two stores down from where you want to set up shop, but if that's the store drawing the crowds, you may be out of luck. Buyers won't put their groceries in their cars and then shop leisurely for items like computers, vacation packages and wallpaper.