{"id":192913,"date":"2025-12-10T14:30:57","date_gmt":"2025-12-10T14:30:57","guid":{"rendered":"https:\/\/gesvalt.es\/?p=192913"},"modified":"2026-01-28T11:04:13","modified_gmt":"2026-01-28T11:04:13","slug":"choose-business-location-geomarketing","status":"publish","type":"post","link":"https:\/\/gesvalt.es\/en\/blog\/elegir-ubicacion-negocio-geomarketing\/","title":{"rendered":"How to choose your business location: key factors, criteria and data-driven tools"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"192913\" class=\"elementor elementor-192913\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-5e1fd5e e-flex e-con-boxed e-con e-parent\" data-id=\"5e1fd5e\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2db8ac0 elementor-widget elementor-widget-html\" data-id=\"2db8ac0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<p><strong>Factors such as the type of activity, customer profile, urban environment, and actual demand data make the choice of location a key strategic decision for any physical business.<\/strong><\/p>\n<p><strong>How to choose the best location for a business<\/strong> This is one of the first questions that arises when deciding to open a first shop or if you are in the process of expanding your business. It is no secret that, rather than finding an available location, it is more about understanding which area has the most sales potential while minimising the level of risk in the investment. <\/p>\n<p>The strategic location of a business determines its visibility, the type of customers it will attract, its costs and, ultimately, its viability.<\/p>\n<p>For this reason, decisions are increasingly being backed by specialist consultancies such as Gesvalt to design their expansion and <strong>select locations based on data, geomarketing, and advanced analysis.<\/strong><\/p>\n<h2>Why location is key to business success<\/h2>\n<p>It is important to consider all factors that could affect the business before deciding on a location, because location has a direct impact on:<\/p>\n<ul>\n<li>The<strong> visibility and traffic<\/strong> of potential customers.<\/li>\n<li>The <strong>sales level<\/strong>, average ticket size and recurrence.<\/li>\n<li>The <strong>fixed costs<\/strong> (rent, supplies, necessary staff).<\/li>\n<li>The <strong>logistics and operational efficiency<\/strong> (suppliers, deliveries, storage).<\/li>\n<\/ul>\n<p><br><\/p>\n<p>The consequences of a poor location decision can lead to lower-than-expected sales, the need for intensive marketing efforts, or even early closure. <\/p>\n<p><strong>Some examples of the influence of location: <\/strong>A caf\u00e9 on a street with little traffic, a newly arrived supermarket chain setting up shop near an established competitor, or a specialist clinic in an area without sufficient purchasing power for its services.<\/p>\n<p><strong>Why is the location of a business so important?<\/strong><\/p>\n<p>Because it determines how many potential customers pass by and under what conditions it is possible to attract them over other businesses.<\/p>\n<p><strong>How does it affect profitability?<\/strong><\/p>\n<p>With the same structural costs, choosing the right location can increase sales. Conversely, a poor business location can drive up customer acquisition costs and, as a result, reduce margins.<\/p>\n<h2>Criteria for choosing a business location<\/h2>\n<h3>General factors:<\/h3>\n<p>When defining <strong>criteria for choosing a shop location<\/strong> or any physical business, it is advisable to start with a series of common factors:<\/p>\n<p><strong>Accessibility and customer flow<\/strong><\/p>\n<p>How do your customers arrive? On foot, by car, by public transport? Does the area have a constant flow of customers, or does it depend on specific peak times?<\/p>\n<p><strong>Competition and market saturation<\/strong><\/p>\n<p>It is not just a question of how many competitors there are, but also of their positioning, their prices and the gaps in the market that remain unfilled.<\/p>\n<p><strong>Premises price and operating costs<\/strong><\/p>\n<p>A very low rent in an area with no demand can end up being more expensive than paying a little more in a strategic location with guaranteed footfall.<\/p>\n<p><strong>Visibility, signage and urban environment<\/strong><\/p>\n<p>Can your fa\u00e7ade be seen from afar? Are there trees, fences or speed bumps that obstruct visibility? The surroundings (lighting, cleanliness, security) influence customer perception.<\/p>\n<p><strong>Commercial areas or areas with high pedestrian traffic<\/strong><\/p>\n<p>Being on a side street next to a prime area can make the difference between capturing that traffic or not.<\/p>\n<h3>Specific factors depending on the type of business:<\/h3>\n<p>Choosing the best location for a retail business is not the same as choosing the best location for offices or a logistics warehouse. Let's clarify a few nuances:<\/p>\n<ul>\n<li><strong>Retail and catering<\/strong><\/li>\n<p>- They require high visibility, foot traffic, and proximity to leisure or work areas. Business hours, street life, and the presence of complementary shops are very important.<\/p>\n<li><strong>Offices<\/strong><\/li>\n<p>- Priorities: accessibility by public transport, corporate image of the building and nearby services (restaurants, banks, gyms).<br>- Location influences the ability to attract talent.<\/p>\n<li><strong>Logistics<\/strong><\/li>\n<p>- The key factors are connections to main roads, access for lorries, delivery times and land availability.<br>- Here, the strategic location of a business has more to do with the supply chain than with the end customer.<\/p>\n<li><strong>Proximity to target customers<\/strong><\/li>\n<p>- Defining your audience well and positioning yourself close to them reduces acquisition costs and improves conversion.<\/p>\n<li><strong>Timetables, parking, public transport<\/strong><\/li>\n<p>A family restaurant without parking in a suburban area will have a harder time than a similar establishment with adequate parking.<\/p>\n<\/ul>\n<p><br><\/p>\n<p><strong>Practical example<\/strong><\/p>\n<p>- A <strong>supermarket<\/strong> It needs to be located in residential areas with high population density, good access on foot and by car, and sufficient parking.<\/p>\n<p>- One <strong>pharmacy<\/strong> prioritises proximity to health centres, transit areas and established neighbourhoods.<\/p>\n<p>- One <strong>fashion franchise<\/strong> It will seek out commercial hubs, shopping centres or areas where there is already established footfall from its target audience.<\/p>\n<p><br><\/p>\n<h2>The role of geomarketing in choosing commercial locations<\/h2>\n<h3>What is geomarketing and what is it used for?<\/h3>\n<p>We understand the <strong>geomarketing<\/strong> as the discipline that combines geographical information with market and behavioural data to understand what is happening in each area: who lives there, how much they earn, how they move around and what they consume.<\/p>\n<p>In practice, the <strong>geomarketing for businesses<\/strong> allows you to gauge the potential of a location before signing a contract: measure demand, estimate actual competition and anticipate customer response.<\/p>\n<p><br><\/p>\n<h3>How can geomarketing be used to choose a business location?<\/h3>\n<p>The <strong>application of geomarketing<\/strong> When choosing a location, it is based on crossing:<\/p>\n<ul>\n<li><strong>Socio-demographic data <\/strong>(age, family structure, level of education).<\/li>\n<li><strong>Income level and spending power.<\/strong>\n<\/li><li><strong>Consumption habits and priority categories.<\/strong><\/li>\n<li><strong>Mobility flows:<\/strong> where people actually move during the day.<\/li>\n<\/ul>\n<p><br><\/p>\n<p>With this foundation, different applications can be developed:<\/p>\n<ul>\n<li><strong>Geomarketing for local businesses<\/strong><\/li>\n<p>Analyse who lives and works within a certain radius, at what times of day traffic is concentrated, and what gaps exist in supply.<\/p>\n<li><strong>Geomarketing in supermarkets and commercial distribution<\/strong><\/li>\n<p>Estimate how much market share a new shop can capture, how its catchment areas overlap with other establishments, and how to optimise the network to improve profitability.<\/p>\n<li><strong>Geomarketing and large-scale commercial distribution<\/strong><\/li>\n<p>Design multi-city expansion plans, prioritising those areas where data indicates greater potential and lower risk.<\/p>\n<\/ul>\n<p><br><\/p>\n<p>The objective is the same in all cases: to convert. <strong>how to choose the best location for a business<\/strong> in a measurable and predictable decision, not in an intuitive gamble.<\/p>\n<p><br><\/p>\n<h3>What advantages does it offer over the traditional method?<\/h3>\n<p>Compared to \u201cI like this street\u201d or \u201cthis area has always worked well\u201d, geomarketing offers:<\/p>\n<ul>\n<li>Decisions based on <strong>actual data<\/strong>, not in perceptions.<\/li>\n<li>Ability to <strong>simulate scenarios<\/strong> sales and profitability.<\/li>\n<li>Detection of <strong>hidden opportunities<\/strong> (emerging neighbourhoods, changes in mobility, new infrastructure).<\/li>\n<li><strong>Risk reduction<\/strong> in investments for expansion and opening new shops.<\/li>\n<\/ul>\n<p><br><\/p>\n<h2>How to apply Data Science in business expansion?<\/h2>\n<p>Data Science projects allow us to go one step beyond geomarketing. Using internal data (sales, receipts, customer profiles) and external data (demographics, income, competition, mobility), models can be built that:<\/p>\n<ul>\n<li><strong>They analyse<\/strong> thousands of variables simultaneously (traffic, population density, competition, average ticket, loyalty, etc.).<\/li>\n<li><strong>They predict<\/strong> the expected performance of a new location before opening.<\/li>\n<li><strong>They help prioritise<\/strong> cities, neighbourhoods or commercial hubs for a chain, franchise or supermarket network.<\/li>\n<\/ul>\n<p><br><\/p>\n<p>For companies in the expansion phase, relying on expert consultants who integrate <strong>technology, geomarketing and market knowledge<\/strong> allows you to reduce time, avoid errors and design a more profitable network of points of sale.<\/p>\n<p><strong>At Gesvalt, our team of <a href=\"https:\/\/gesvalt.es\/en\/companies\/data-consulting\/\" target=\"_blank\" rel=\"noopener noreferrer\">Data Consulting<\/a>\n combines geomarketing, market intelligence and predictive analytics to help you identify the best location for your business and define a sustainable expansion strategy.<\/strong><\/p>\n<p>Discover our location expansion and selection service:<\/p>\n<p><br><\/p>\n<p><a class=\"btn-post\" href=\"https:\/\/gesvalt.es\/en\/companies\/data-consulting\/strategic-expansion-and-intelligent-selection-of-business-locations\/\">I would like more information.<\/a><\/p>\n<p><br><\/p>\n<h2>Examples of criteria and decisions in business expansion<\/h2>\n<p>Let's imagine a company that wants to open ten new shops in a large city. Without data, the temptation is to choose the \u201ctraditional\u201d areas or to follow only local recommendations. With a data-driven approach:<\/p>\n<ul>\n<li>Areas with similar traffic but different rents are compared.<\/li>\n<li>An assessment is made of which neighbourhoods have the highest concentration of customers who match the brand profile.<\/li>\n<li>Areas where competition is saturated and others where there is unmet demand are identified.<\/li>\n<\/ul>\n<p><br><\/p>\n<p>A good location can significantly increase sales with the same resources. For example, opening a shop in commercial area A (high traffic but audience not well aligned with the product) versus area B (slightly less traffic, but audience highly aligned with the target) can make a difference in average ticket size, repeat business, and loyalty.<\/p>\n<p>The key is in <strong>validate hypotheses with data:<\/strong> pedestrian or vehicular traffic, customer profiles, daily mobility, impact of new stations, shopping centres or changes in land use. That is the logic that should guide <strong>how to choose the best location for a business in practice.<\/strong><\/p>\n<p><br><\/p>\n<h2>How to choose the best location for your business step by step?<\/h2>\n<p><br><\/p>\n<h3>Define your target audience.<\/h3>\n<p>First the customer, then the street. The more specific your ideal customer is (age, income, habits, motivations), the easier it will be to locate them on the map.<\/p>\n<h3> Analyse the local competition.<\/h3>\n<p>It's not just how many are competing, but how they compete. Identify who sells something similar, at what price, with what value proposition, and what share your business can absorb.<\/p>\n<h3>Assess costs and accessibility.<\/h3>\n<p>An expensive location can be profitable if the sales potential makes up for it. Compare rent, expenses and conditions of the premises with access, public transport and parking.<\/p>\n<h3>Use geomarketing tools.<\/h3>\n<p>Geomarketing for businesses helps you see what the naked eye cannot. Use heat maps, income data, population density and mobility to identify areas with the greatest potential.<\/p>\n<h3>Compare the data with a professional study.<\/h3>\n<p>An independent study reduces internal biases and impulsive decisions. It involves specialists in valuation, market analysis, and expansion.<\/p>\n<h3> Assess the economic and fiscal viability.<\/h3>\n<p>Location also has fiscal and regulatory implications. Analyse local taxes, fees, licences, and potential incentives.<\/p>\n<h3> Make an informed decision.<\/h3>\n<p><strong>How to choose the best location for a business<\/strong> It is a process, not an impulse. Integrate data, qualitative criteria, and business objectives before signing.<\/p>\n<p><br><\/p>\n<h2>Conclusion: the ideal location is chosen with data, not intuition.<\/h2>\n<p>The location is a <strong>strategic business decision<\/strong> which affects sales, profitability and growth potential. Choosing the right strategic location for a business means relying on data, geomarketing, market analysis and predictive models, not just gut feelings.<\/p>\n<p><strong>Gesvalt acts as an expert partner<\/strong> for companies that want to plan their expansion rigorously: from the <strong>criteria for choosing a shop location<\/strong> until the <strong>application of geomarketing and data science<\/strong> in franchise networks, supermarkets or local businesses.<\/p>\n<p>Further information about our commercial location expansion and selection service:<\/p><p><br><\/p>\n<p><a class=\"btn-post\" href=\"https:\/\/gesvalt.es\/en\/companies\/data-consulting\/strategic-expansion-and-intelligent-selection-of-business-locations\/\">I would like more information.<\/a><\/p>\n<p><br><\/p>\n<h2>Frequently asked questions about choosing a business location<\/h2>\n<h3>What is a strategic business location?<\/h3>\n<p>It is the location that maximises your company's sales and profitability potential, aligning customer profiles, competition, costs and accessibility.<\/p>\n<h3>How important is geomarketing for a business?<\/h3>\n<p>Geomarketing provides objective data on who lives, works and moves around in each area, and allows you to estimate the performance of a location before opening.<\/p>\n<h3>What criteria should be taken into account when opening a shop?<\/h3>\n<p>You must consider your target audience, footfall, competition, the cost of the premises, visibility and local amenities; these are the main criteria for choosing a shop location.<\/p>\n<h3>How can Gesvalt help me choose the location for my business?<\/h3>\n<p>Gesvalt combines geomarketing, data analysis and market knowledge to help you select the best locations, optimise your network and reduce the risk in your expansion decisions.<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>Factores como el tipo de actividad, el perfil de cliente, el entorno urbano o los datos reales de demanda convierten la elecci\u00f3n de ubicaci\u00f3n en una decisi\u00f3n estrat\u00e9gica clave para cualquier negocio f\u00edsico. C\u00f3mo elegir la mejor ubicaci\u00f3n para un negocio es una de las primeras preguntas que surge ante la decisi\u00f3n de apertura de [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":192968,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6],"tags":[],"class_list":["post-192913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mercado-inmobiliario"],"acf":[],"_links":{"self":[{"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/posts\/192913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/comments?post=192913"}],"version-history":[{"count":10,"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/posts\/192913\/revisions"}],"predecessor-version":[{"id":194073,"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/posts\/192913\/revisions\/194073"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/media\/192968"}],"wp:attachment":[{"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/media?parent=192913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/categories?post=192913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/tags?post=192913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}