Transcript Document

4 Steps in Choosing a Store Location
Evaluate residents and existing retailers
Shopping Center or standalone
Select location according to nature of
business
Analyze sites in specified location type
Site Evaluation Checklist
Customer Number of
people
Traffic
Purchasing
power of
customers
Psychographic
types of
customers
Vehicular
Traffic
Numbers of
vehicles
Traffic
congestion
Type on vehicle
in-out
Parking
Facility
Numbers of
Walking
parking spots distance to
store
Availability of
employee, truck
loading
Site Evaluation
Transportation Accessible by Ease of
public
delivering
transportation and loading
Mass Transit
Store
Composition
Competition
around
Retail
balance
Numbers and
sizes of
stores in area
Occupancy
Rent or
lease?
Maintenance Size, shape,
costs
of lot vs.
rental charge
Finding an Optimum Location
for a Small Business
Customer
Accessibility
Personal
Preference
• Work at home
• Friends and
relatives nearby
• Lifestyle advantages
Environmental
Conditions
• Laws and taxes
• Weather
• Competition
Small Business Management, 11th edition
Longenecker, Moore, and Petty
© 2000
South-Western College Publishing
• Convenience
for target
customers
Site Availability
and Costs
Resource
Availability
• Incubator or
leasing options
• Raw materials
• Transportation
• Labor supply
9-3
Leasing vs. Buying
Advantages of
Leasing
Advantages of
Buying
1. Conserving cash
1. Freedom to design or
modify structure
2. Minimizing risk
2. Guaranteed location
3. Hedge against inflation
se
Lea
Small Business Management, 11th edition
Longenecker, Moore, and Petty
© 2000
South-Western College Publishing
9-4
Factors Influencing Choice of
Location
Proximity to target
market
Condition of the
neighborhood
Condition of the
property
Location of competitors
Conditions of the leases
Taxes
Square footage available
Storage space
Parking
Access to employees
Traffic patterns
Local area business
climate
Reliability of landlord
if leasing
9-4
Types of Locations
Stand-Alone
or
Store
Retail
Location
Business
District
Shopping
Center
Promotion for Each Type of Location
Shopping
Center
Business
District
Stand-Alone
Prominent
display & good
signage
Focus on
variety not
pricing
Quick
service & easy
menu
New
promotion to
attract visit
Destination
place with
deep selection
of items
Competitive
pricing to
attract
customers
Building Layout
Factory Layout
Process
layout
Product
layout
Retail Store Layout
Grid
pattern
Free-flow
pattern
9-6
Grid Pattern of Store Layout
Display Racks
Display
Racks
Display Racks
Racks
Door
Check-out
Door
Office
Restrooms
Storage
9-7
Free-Flow Pattern of Store Layout
Racks
Storage
Office
Door
Check-out
Display
Door
Storage
le
T ab
Display Racks
9-8
Equipment
Refers to implements used in a business’s
operation.
Includes machinery and tools needed to carry out
the main physical labor of a business. Forklifts,
mechanic’s tools, and computers are all
equipment in this sense.
Equipment also includes things used in
managing the business or selling its
products.
This means that furniture and appliances (like
telephones and hairdryers) are equipment.
 Fixtures
attached to the building or thought of as
part of it (like ceiling lights and display cases).
 Supplies
are items that are used up in the operation of the
business.
They may also support the administrative side of the
operation. (Materials like computer paper, pens, or
paper clips, shampoo.)
 Inventory
refers to merchandise purchased by a business for
eventual resale.
Equipment, Supplies, Inventory