The most important factor to consider when starting to build a business is the target audience. You have to think of who would you want to cater to. Who are the communities that you may profit off of. Like for example if there is a school near you, you should know that students would be your target audience. You should start a business where students can buy materials from or a place they can study or even hang out around. I believe that if you studied your target audience, the first step of your business is already successful enough.
Of course, the most important thing in doing business is to know the customers and who they are, what they want, and try to fulfill their needs. And you have to choose a place around them. Moreover, you have to pay attention to the location of the competitors in the vicinity.
If the shop is next to a school, then that shop should be a little bigger than the competitors. Because the number of customers in large shops is more.