I have an 8 footer and installed it roughly even with the cleat and behind the starboard running light. It's mostly in the blind spot there. If you have a 4 footer, I would suggest a roof mount. If you're against punching holes in your new toy, there are nice mounts that attach to your rails.
I've just finished the trauma of installing an anchor windlass so little 1/4" holes are a lot easier to do....