LOCATE AND SET UP YOUR BUSINESS Entrepreneurship 4/23/2017 Chapter 8 LOCATE AND SET UP YOUR BUSINESS 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 Chapter 8

Lesson 8.3 OBTAIN SPACE AND DESIGN THE PHYSICAL LAYOUT Chapter 8 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.

Chapter 8 Once you choose a location for your business, you will have to lease or buy space. You will also have to design the physical layout of your place of business.

LEASE OR BUY SPACE In a lease, there is a tenant and a landlord. Chapter 8 LEASE OR BUY SPACE In a lease, there is a tenant and a landlord. Tenant- pays rent to occupy the space Landlord- owns and rents out buildings or space.

LEASE OR BUY SPACE 3 kinds of commercial leases Gross lease Net lease Chapter 8 LEASE OR BUY SPACE 3 kinds of commercial leases Gross lease Net lease Percentage lease

Chapter 8 Gross lease Tenant pays rent each month; landlord covers all property expenses. Expenses include: property taxes, insurance, and building maintenance

Net lease Percentage lease Chapter 8 Net lease Landlord pays building insurance; tenant pays rent, taxes, and other expenses Percentage lease Tenant pays rent plus a percentage of the revenue earned

Comparing different locations Chapter 8 Comparing different locations Once you have selected possible locations, you will need to compare the costs and benefits of leasing at each location Calculating Rent per Customer (rent/ # customers) Monthly rent Downtown $925 Shopping Center $1,100 Proj. cust. traffic 8,500 12,000 Rent per cust. $0.11 $0.09

Analyze Business Locations Chapter 8 Analyze Business Locations Choose 1 local business with a good location & explain why it’s good Choose 1 local business with a bad location & explain why it’s bad & recommend a better location

DESIGN THE LAYOUT OF YOUR BUSINESS Chapter 8 DESIGN THE LAYOUT OF YOUR BUSINESS After you have leased or purchased a facility, you will need to design your layout. Make sure you have room for: Employees Customers Merchandise Equipment Restrooms Stockrooms Storage Offices

CREATE THE FLOOR PLAN for your Business Chapter 8 CREATE THE FLOOR PLAN for your Business Cash registers Clothing Supplies and Inventory Dressing rooms Clothing tables Clothing racks Counter Window display Sample Floor Plan

LAYOUT OF A RETAIL BUSINESS Chapter 8 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

LAYOUT OF A SERVICE BUSINESS Chapter 8 LAYOUT OF A SERVICE BUSINESS Layout is influenced by where services take place: At the business location (restaurants, hair salon, tax prep) At the customer’s location—on-site (exterminators, plumbers, cleaning service)

LAYOUT OF A WHOLESALE BUSINESS Chapter 8 LAYOUT OF A WHOLESALE BUSINESS 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

LAYOUT OF A MANUFACTURING BUSINESS Chapter 8 LAYOUT OF A 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