Where a business locates its premises depends on the following factors

Type of Business and its product - Some businesses have to be located near to where their product is, for example a coal mine has to be located above a coal seam.

Type of Labour needed - If a business needs specialised labour then they will have to locate in a richer location where there is more educated labour.

Cost of Site - Whether the business can actually afford to move to that location.

Infrastructure - If a business transports a lot of materials to their premises they will have to think about the road links that lead to their premises.

Degree of Competition - A business will usually want to locate away from its competitors if possible.

Location of Consumers - A business has to locate close to their consumers so that they do not have to transport their products a long distance. As well as this if a business is a shop for example it has to be located near consumers that can buy from it.

Government Incentives - The government might try and get a business to locate to a certain region in exchange for benefits.

Planning Regulations - A business needs to make sure that they can build and operate whatever they need to on their premise before purchasing it