LOCATION, LOCATION, LOCATION! CHAPTER 14 BCEN 2900 Entrepreneurship

Is Location Important?  When is the last time you opted NOT to go to a retail establishment or restaurant because it was not convenient to get there?  Can you think of instances when location was not an important factor in your purchasing decision?  Or, to get out of retail, in what types of businesses might location NOT be an issue?

Choosing the Proper Region and State  What goes into this decision?  Nearness to markets  Nearness to raw materials and suppliers  Wages  Labor supply  Business climate  Taxes  Internet access Tennessee ranked 5 th in the nation in 2009 for economic performance and 4 th in the nation for workforces!! Tennessee was the 4 th most entrepreneurial state in the nation from Murfreesboro was named by Business Week As one of the Top Places to Raise Your Kids!

Choosing the Right City  What is the population doing?  Who is your competition?  What is the community like?  What are the local regulations?  What is the quality of life where you want to locate your business?  How well do you know this city? Rutherford County is the fastest growing county in Tennessee. The Nashville – Davidson – Murfreesboro area ranks 5 th in U.S. markets for “economic strength”

Choosing a Site for a Retail Business  Competition and Substitutes  Transportation  Ethnographic issues  Traffic  Parking  Expansion potential  Visibility  Ask the Chamber for help! Ask the Chamber for help

Options for Retail Locations  Central business districts (The Square)  Neighborhood centers (Kroger strip mall at Hwy 96 and Rutherford)  Community centers (Strip mall with Wal-mart on Rutherford)  Enclosed malls  Regional shopping centers (Cool Springs, Brentwood)  Superregional centers (The Galleria, Birmingham)  Lifestyle centers (The Avenue)  Power centers (Between Wal-mart and Stones River Mall)  Outlet centers (Prime Outlets, Lebanon)

Choosing a Site for a Manufacturer  Zoning regulations apply  Transportation important  Need trucking?  Need railroad access?  Nearness to suppliers important  Becoming more important as fuel costs escalate  Foreign trade zones  Only pay tariffs on parts and finished products that stay in the U.S.

External Considerations  Appearance  Entrances  Window displays and views inward  Compliance with ADA  Signage

Interior Considerations  Lighting  Ease of flow through facility  Ergonomics  Lighting  Décor and color scheme  Appealing to consumers’ senses

Layout  What Is It?  Grid, Free-flow, loop, spine  Display items in an appealing manner  Take advantage of customers’ behaviors  Maximize the rent you are paying by optimizing space usage.

Layout for Manufacturers  Product layout  Process layout  Fixed position layout  Functional layout  Ergonomic, process, product, and economic considerations are all important!