The major factor that a small business owner should take into account when choosing a location is the type of business that they have. They need to determine whether their customers will come to them or if they will go to (or send things to) customers. If customers come to them, they need to determine if the customers are likely to come on foot or by car. If they are going to go to customers, are they literally going to those customers or can they contact them by phone or internet? Do they have large products that they need to move out to customers?
All of these factors must be considered. Then, for example, a business that depends on customers coming to it should locate in an easily accessible place like a mall or a main street. As another example, the owner needs to interact with customers, they may want to locate near the customers or, if feasible, work from home.
Overall, then, a small business owner should choose a location by carefully considering the needs of the business they are running.