Location matters and it could save your business money

Published On : 07/09/2019

Just as with choosing a home for your family, choosing a home for your business is a serious decision and one which could have lasting impacts. Making the correct decision could set your business on the path to success, while the wrong location could cause issues which impact your business for years to come until you can relocate.

There are numerous factors to consider when choosing the location for your business. Some of which include, the financial cost of the workspace, the access to employees and the access to a loyal customer base. In one way or another all of these aspects, and others, will impact the financial success of the business.

One business which has seen the benefits of choosing the right location for their work is Robinson of England, a luxury furniture manufacturer specialising in Chesterfield sofas and chairs. The company was founded by David Robinson in the early 2000s and has since produced pieces of furniture for clients such as the Bank of England and Google.

Robinson of England is based in the North East City of Newcastle, once famous for its part in the industrial revolution and the ship building industry, now a vibrant city with major universities and a huge number of independent businesses such as Robinson of England.

Finding a location which could save your business money while also enabling it to make money should be the goal of any business. Newcastle offered Robinson of England that opportunity. David Robinson said that being based in Newcastle meant that there was “certainly good savings to be hand on premises.” Finding a suitable workspace was also not an issue as, “there are some great sites and an excellent array of premises available, from vast warehouses to more quirk workshops.”

Considering the density of other businesses and potential clients in the UK capital of London, many companies feel that to reach the highest levels of success, you need to be based there. For Robinson of England however, this was not that case, as Mr Robinson explained.

“I have over the years considered having workshops in London to gain greater access to potential clients. I did go down the route of showrooms in London several years ago but maintained our manufacturing firmly here in the North East.

As a predominantly internet based company, we are able to thrive from the North East.”

This is a crucial point to understand for any business, ‘where does your revenue come from?’ and ‘does your location impact this?’ For Robinson of England, being based in the North East allowed them to operate with lower costs when it came to premises, while still maintaining their sales due to a high volume of customers coming from the internet.

If your business allows, finding an area with lower running costs can have a far-reaching impact on your business. When it comes to recruiting employees, there are benefits which basing your business in cities other than London can provide. From a financial point of view, wages do not need to be as high due to the lower cost of living. As Mr Robinson pointed out that, “the cost of housing for employees and the overall standard of living and schools is excellent” in the North East. Furthermore, Robinson of England have not encountered any issues attracting and employing skilled works to the company.

Overall, even in a sector as competitive as high-end furniture, being based in a lower cost area compared to London has not impacted the success of Robinson of England. Due to online sales and lower operating costs, the North East has provided David Robinson and his company the platform to grow and be successful. Robinson of England is an excellent example of why choosing the correct location for your business can save you money. Understanding the cost benefits of different locations in relation to where your revenue comes from and why being based in the biggest markets is not always necessary or beneficial.

Wanda Rich

Wanda Rich has been the Editor-in-Chief of Global Banking & Finance Review since 2011, playing a pivotal role in shaping the publication’s content and direction. Under her leadership, the magazine has expanded its global reach and established itself as a trusted source of information and analysis across various financial sectors. She is known for conducting exclusive interviews with industry leaders and oversees the Global Banking & Finance Awards, which recognize innovation and leadership in finance. In addition to Global Banking & Finance Review, Wanda also serves as editor for numerous other platforms, including Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.