Starting up my own company in my hometown Taiwan has always been my entrepreneurial dream. The blueprint of it is a company that makes high-quality clothing and accessories, and specializing in “hat and cap”. In one of the readings of COM101 class, it talks about how entering early in the market will have a big advantage. For example, it can make a lasting impression, more time to refine the process to perfect the product, and has less competition. In Taiwan, there are a lot of companies in the market, for example, Zara, H&M, Uniqlo, and other local companies. However, no one is specializing in producing hat/cap. With the first-mover advantage, it is highly likely my company can find its position in the market. A big problem is how to choose the location to set up stores.

Choosing a location for a new business is one of the most important decisions entrepreneurs make during the planning phase of launching a venture. It will affect the profitability such as the total sales made (window-shopping customers) and the total cost (rent). Refering to a blog in allbusiness.com, “finding the best location for your small business: 5 factors to consider” (Wood, 2017), it talks about how and why to choose the best location to set up small businesses.

1. Most Popular; before starting up, finding and connecting with other entrepreneurs that are either in the same boat or have been through the starting-up stage can be a valuable asset. Built-in networking opportunities and sense of community can be vital for start-up entrepreneurs.
2. Lowest cost of running a business; reducing cost is crucial for start-up companies. Low cost can lead to higher profit and therefore enable further investments to expand the company. By choosing a location with lower office space, utilities, legal costs and filing fees, it can significantly reduce cost.
3. Highest revenue; High revenue is equally important as low cost, where it increases profitability to enable investment and expansion. Choosing a location that usually generates the highest revenue such as Taipei city will be ideal to start up my business.
4. Most lenient government policies; choosing a location that is friendly to small businesses will make it easier to obtain licenses, hire employees and reduce taxation.
5. Highest survival rates; looking at cities that have great numbers of companies that stay in the business for more than 5 years will enable my company for long-term survival even its not making a profit at the beginning.

In conclusion, after setting up my hat/cap company, considering these 5 factors, an ideal location will be the capital of Taiwan, Taipei city.

 

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Bibliography:

Wood, M. (2017, October 16). Finding the Best Location for Your Small Business: 5 Factors to Consider. Retrieved October 27, 2017, from https://www.allbusiness.com/start-small-business-5-factors-consider-114034-1.html/2

Susan, F. First-Mover: Advantages, Disadvantages & Examples. Retrieved October 27, 2017, from http://study.com/academy/lesson/first-mover-advantages-disadvantages-examples.html