10 Identify and explain two factors Tebo should consider when deciding where to locate his business. [6]

[BASEL Moderator]

Tebo has recently been made redundant from his job as a car mechanic. He is thinking of setting up his own business. Even though he has no management experience, he knows that managing cash flow will be important to the success of the business. Tebo is considering whether to apply for a FIXIT franchise. This franchise would cost $15 000, which would use all of his savings. FIXIT is a car repair franchise, with 36 franchisees.

10 Identify and explain two factors Tebo should consider when deciding where to locate his business. [6]

Possible KN Points:
• Demand/customers
• personal preference
• suitable/size of space
• legal controls
• competition
• franchisor’s views
• transport links/access
• availability of suitable employees
• near to supplier