Chapter 8 CHOOSE YOUR LOCATION AND SET UP FOR BUSINESS
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Transcript Chapter 8 CHOOSE YOUR LOCATION AND SET UP FOR BUSINESS
Chapter 8
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
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Chapter 8
Slide 2
Lesson 8.1
CHOOSE A RETAIL
BUSINESS LOCATION
GOALS
Research retail location
possibilities.
Begin to select your
location.
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Chapter 8
Slide 3
LOCATION POSSIBILITIES
Downtown areas
Neighborhood shopping centers
Community shopping centers
Regional shopping centers
Super-regional shopping centers
Stand-alone stores
Warehouses
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Slide 4
DOWNTOWN AREAS
Advantages
Central
Likely to attract business shoppers
Disadvantages
Parking problems
Distance from suburbs
Crime
Lack of evening shoppers
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Slide 5
NEIGHBORHOOD
SHOPPING CENTERS
Advantages
Supermarkets and other businesses bring
in customers
Low rent
Disadvantages
Attracts only customers who live in area
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Slide 6
COMMUNITY
SHOPPING CENTERS
Advantages
Anchor stores bring in customers
Moderate rent
Disadvantages
Distance is too great when convenience is
important
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Chapter 8
Slide 7
REGIONAL
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
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Slide 8
SUPER-REGIONAL
SHOPPING CENTERS
Advantages
Huge number of customers
Services a large area
Disadvantages
Very high rent
Competition from many companies
Distance is too great when convenience is
important
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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
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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
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Slide 11
BEGIN SELECTION OF YOUR SITE
The trade area is the area from which
you expect to attract customers.
Location type and availability
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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?
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Chapter 8
Slide 13
Lesson 8.2
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.
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Slide 14
LOCATION FOR
A SERVICE BUSINESS
For some service businesses, location
is as important as it is for a retail
business.
Is location always important?
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LOCATION FOR
AN INDUSTRIAL BUSINESS
Chapter 8
Slide 15
Industrial parks are sections of land
that can be used for industrial business
locations.
Enterprise zones are areas that suffer
from lack of employment opportunities.
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OPERATE YOUR
BUSINESS FROM HOME
Chapter 8
Slide 16
Zoning laws
Office space considerations
Advantages and disadvantages
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Chapter 8
Slide 17
Lesson 8.3
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.
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Slide 18
LEASE OR BUY SPACE
Kinds of commercial leases
Gross lease
Net lease
Percentage lease
Compare different locations
Calculating rent per customer
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Slide 19
DESIGN THE LAYOUT
OF YOUR BUSINESS
Your layout must include enough space for:
Employees
Customers
Merchandise
Equipment
Restrooms
Stockrooms
Storage
Offices
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Slide 20
CREATE THE FLOOR PLAN
Supplies
and
Inventory
Clothing tables
Clothing
Sample Floor Plan
Clothing
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Clothing racks
Clothing
Window display
Counter
Cash registers
Clothing
Window display
Dressing rooms
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Slide 21
LAYOUT OF A
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
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Slide 22
LAYOUT OF A
SERVICE BUSINESS
Layout is influenced by where services
take place:
At the business location
At the customer’s location—on-site
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LAYOUT OF A
WHOLESALE BUSINESS
Chapter 8
Slide 23
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
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LAYOUT OF A
MANUFACTURING BUSINESS
Chapter 8
Slide 24
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
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Chapter 8
Slide 25
Lesson 8.4
PURCHASE EQUIPMENT,
SUPPLIES, AND INVENTORY
GOALS
Acquire equipment and
supplies by evaluating
different vendors.
Determine the level of
inventory needed for your
business.
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Slide 26
OBTAIN EQUIPMENT AND SUPPLIES
Identify suppliers
Evaluate proposals
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STANDARD EQUIPMENT AND SUPPLY
NEEDS FOR MOST BUSINESSES
TYPE
Chapter 8
Slide 27
ITEMS
Furniture
Desks, chairs, bookcases, filing cabinets,
tables, computer stands
Fixtures
Lamps, overhead lights
Office Equipment
Computers, modems, fax machines,
telephones, photocopiers
Office Supplies
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
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Chapter 8
Slide 28
PURCHASE INVENTORY
Inventory is the quantity of goods and
materials on hand
Purchase inventory for
Start-up business
Ongoing business
The reorder point is a predetermined level of
inventory when new stock must be purchased.
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