Business Proximity And Business Environment

Hello friends, hope you are doing good over there? I just want to try my best to learn about business and establishment of the business.
I wanted to write about a business proposal but I didn't have a clear understanding of how to write until I got materials for it and read it. Business proximity simply means how close the raw materials are to your company. Company may be a sole proprietorship which is a one-man business or group of people. Hence, you can own your company alone and be the only one in the company.
If I have physical business, which i am planning to get. There are two things that I would like to consider in my business, they are: business proximity and business environment. Business proximity is very important in your business, it helps you to: - Reduce Expenses: I have a friend and sibling who are into business. Both of them are doing saw mill business, but my sibling has advantages of proximity to raw material which is wood than my friend. Getting raw materials and transportation of raw materials was very easy for him.
My sibling can get 500 timbers within 8 hours if he wanted, and it will take my friend a week or more than a week to get such timbers.
Therefore, when my sibling sold all 500 timbers, and got other timbers within a short period; my friends also sold all his timers and kept waiting for a vehicle to deliver the one he bought from forest.
Ease Transportation: Not only ease transportation but also reduce your expenses. When I went to my friend to inquire about his business. He told me that he spends a lot of money on transportation alone. Compared to my sibling, who spent just a small amount of money for transportation and got his own vehicle after two years in the business.
In my own opinion, my sibling gets more profits than my friends even though my friends sell more than him.

• Easy access to raw materials: having a business near raw materials is very good and proximity to raw materials is very advantageous to any business. It makes the delivery very smooth. Even when you don’t have the required numbers of the product on ground, you can still get it when needed by customers without the customers patronizing another business man.
  This often happened to my sibling when I was living with him: he assured the customer that he would get it within 8 hours and communicated with people to provide raw materials for him.
  I also have seen the situation where my friend's lost customers because they cannot wait for a week before the wood would be provided.

The Second factor that will determine my business is; BUSINESS ENVIRONMENT or you can call it nearness to the market. The business environment provides support to your business in the following ways:

• High demands: the higher the demand, the higher the supply. When customers patronize your business, the business owner's demand for more supply and workforce. My sibling later employed four employees in his little business because the two employees he had could not be enough due to the increasing number of customers from different locations patronizing him. I had a friend who started selling electrical appliances in a local place where there is no electricity because he studied electrical & electronics and he loved his career so much. He ended up frustrated because the business is not moving well: in a month, he might not sell more than 3 appliances. Meanwhile, he ended up using the money to feed himself.
  He could not go to the market after a year to get more appliances because the appliances he bought were still many in his shop.
  After he moved to a new location where those appliances are needed and there is light in the environment; he was fortunate to get a shop near the road. Within a month he sold more than what he sold in the previous shop for a year.

It reduces lower demand: your environment can determine your success in your business. Your environment can make you have more money in your bank account and can also make you poor. When you are in an environment where your products are not needed or demanded, you might end up losing interest in your business or closure of the business. There are businesses that have folded due to low demand usage of the products from the people in the environment.
This is the reason before setting up a business in a location, you need to make business proposals, and research about the most wanted commodity in the environment. This will help you to understand what they want and want not.

More Profits: Profits are money you made after you have deducted the cost of the material and other expenses such as transportation, salary of your employees, electricity bill, and many more. The higher the demand the higher your profits. When you have more customers, you get more profits.