LOCATE AND SET UP YOUR BUSINESS

Transcription

1 LOCATE AND SET UP YOUR BUSINESS LESSONS 8.1 Choose a Retail Business Location 8.2 Choose a Location for a Non-Retail Business 8.3 Obtain Space and Design the Physical Layout 8.4 Purchase Equipment, Supplies, and Inventory

2 Lesson 8.1 Slide 2 CHOOSE A RETAIL BUSINESS LOCATION GOALS Research retail location possibilities. Begin to select your location.

3 Slide 3 LOCATION POSSIBILITIES Downtown areas Neighborhood shopping centers Community shopping centers Regional shopping centers Super-regional shopping centers Stand-alone stores Warehouses

4 Slide 4 DOWNTOWN AREAS Advantages Central Likely to attract business shoppers Disadvantages Parking problems Distance from suburbs Crime Lack of evening shoppers

5 NEIGHBORHOOD Slide 5 SHOPPING CENTERS Advantages Supermarkets and other businesses bring in customers Low rent Disadvantages Attracts only customers who live in area

6 COMMUNITY Slide 6 SHOPPING CENTERS Advantages Anchor stores bring in customers Moderate rent Disadvantages Distance is too great when convenience is important

7 REGIONAL Slide 7 SHOPPING CENTERS Advantages Anchor stores bring in customers Walk-in traffic Attracts customers from a large area Disadvantages Distance is too great when convenience is important High rent

8 SUPER-REGIONAL Slide 8 SHOPPING CENTERS Advantages Huge number of customers Services a large area Disadvantages Very high rent Competition from many companies Concord Mills Mall Distance is too great when convenience is important

9 Slide 9 STAND-ALONE STORES Advantages Rent can be lower No competition next door Disadvantages No anchor store to attract customers Extra expense of advertising

10 Slide 10 WAREHOUSES Advantages Low rent Can charge lower prices than competition Disadvantages No anchor store to attract customers Requires heavy advertising Customers may not be aware of your business

11 Slide 11 BEGIN SELECTION OF YOUR SITE The trade area is the area from which you expect to attract customers. Location type and availability Map out your competitors, businesses that attract your same target market, and proposed locations available

12 Slide 12 QUESTIONS TO ASK Is the location safe? Is it attractive? Does it seem to attract the kind of customers your business will be targeting? Is it easy to reach? Is parking adequate? Do businesses in the vicinity seem to be thriving?

13 Lesson 8.2 Slide 13 CHOOSE A LOCATION FOR A NON-RETAIL BUSINESS GOALS Examine a location for a service business. Select a location for an industrial business. Operate your business from your home.

14 LOCATION FOR Slide 14 A SERVICE BUSINESS For some service businesses, location is as important as it is for a retail business. Is location always important? Not if customers don t visit (plumbers, cleaning companies)

15 LOCATION FOR Slide 15 AN INDUSTRIAL BUSINESS Industrial parks are sections of land that can be used for industrial business locations. Usually where land is less expensive. Enterprise zones are areas that suffer from lack of employment opportunities. May receive favorable tax benefits.

16 OPERATE YOUR Slide 16 BUSINESS FROM HOME Zoning laws-check to see if you are allowed to operate a business in your home Office space considerations IRS will give you a deduction for office space in your home as long as it does not serve as family area as well.

17 OPERATE YOUR Slide 17 BUSINESS FROM HOME Advantages Rent, utility, insurance, & other costs are reduced Subtract business expenses from income tax Time & expenses of commuting are eliminated Disadvantages May be difficult to concentrate Miss personal interaction with coworkers

18 Lesson 8.3 Slide 18 OBTAIN SPACE AND DESIGN THE PHYSICAL LAYOUT GOALS Evaluate leasing versus buying space. Consider the costs and kinds of leases. Design the layout for different types of businesses.

19 Slide 19 LEASE OR BUY SPACE Kinds of commercial leases Gross lease-tenant pays for space & landlord pays property expenses (insurance & maintaince) Net lease-landlord pays only insurance, tenant pays rent, taxes, & other expenses Percentage lease-tenant pays rent + landlord gets % of tenant s revenues each month Compare different locations costs vs. benefits Calculating rent per customer (divide rent by # of projected customers for month)

20 DESIGN THE LAYOUT Slide 20 OF YOUR BUSINESS Your layout must include enough space for: Employees Customers Merchandise Equipment Restrooms Stockrooms Storage Offices

21 Cash registers Counter Window display Window display CREATE THE FLOOR PLAN Slide 21 Supplies and Inventory Dressing rooms Clothing Clothing tables Clothing Sample Floor Plan Clothing Clothing racks Clothing

22 LAYOUT OF A Slide 22 RETAIL BUSINESS Choose appropriate lighting Think carefully about window displays Make the entrance inviting Use common sense when organizing the merchandise in your store Leave at least four feet of aisle space Create attractive in-store displays Use wall space wisely Place the cash register in a central location

23 LAYOUT OF A Slide 23 SERVICE BUSINESS Layout is influenced by where services take place: At the business location At the customer s location on-site (layout is not important)

24 LAYOUT OF A Slide 24 WHOLESALE BUSINESS Customers want good price & quality and not concerned with appearance Needs to be well-organized Locate in a one-story warehouse Keep merchandise close to the shipping dock Store popular items in accessible locations Be sure there are areas that accommodate merchandise of all sizes Keep walkways free of merchandise Store items safely

25 LAYOUT OF A Slide 25 MANUFACTURING BUSINESS Work teams should be situated close together Supervisors should be able to easily observe the people they supervise Exits should be clearly marked and easily accessible Any hazardous materials should be stored safely Equipment and machinery should be positioned in a way that reduces the chance of an accident

26 Lesson 8.4 Slide 26 PURCHASE EQUIPMENT, SUPPLIES, AND INVENTORY GOALS Acquire equipment and supplies by evaluating different vendors. Determine the level of inventory needed for your business.

27 Slide 27 OBTAIN EQUIPMENT AND SUPPLIES Identify & research suppliers (vendors) Telephone directory Trade magazines Trade associations Internet SBA Evaluate proposals Obtain a quote (estimate of how much you will pay) from several suppliers Find out quality of products, financing terms, & discounts

28 STANDARD EQUIPMENT AND SUPPLY NEEDS FOR MOST BUSINESSES Slide 28 TYPE Furniture Fixtures Office Equipment Office Supplies ITEMS Desks, chairs, bookcases, filing cabinets, tables, computer stands Lamps, overhead lights Computers, modems, fax machines, telephones, photocopiers Stationery, pens and pencils, scissors, tape, staplers, paper clips, file folders, calendars Maintenance Supplies Toilet paper, paper towels, cleaning supplies Kitchen Supplies Coffee maker, small refrigerator, coffee, tea

29 Slide 29 PURCHASE INVENTORY Inventory is the quantity of goods and materials on hand Purchase inventory for Start-up business (very difficult to determine) Ongoing business The reorder point is a predetermined level of inventory when new stock must be purchased.