PowerPoint Presentation  Section 9.1  Pages

What you’ll learn  How to determine a community for your business site  The criteria to apply when selecting a business site 9.1 Site Selection

What you’ll learn  The factors in location analysis and decision making  The advantages of starting a business at home 9.1 Site Selection

Why it’s important  Location affects the visibility and accessibility of a business  After investing in land, a building, fixtures or heavy equipment, it may be difficult or impossible to move. 9.1 Site Selection

Key Terms economic base incentives enterprise zones Standard Metropolitan Statistical Areas census tracts trade area trade area industrial parks industrial parks 9.1 Site Selection

I. FACTORS IN SELECTING A COMMUNITY No matter where you settle, there are certain questions to consider. 9.1 Site Selection

A. Is the economic base favorable? Study a community’s main source of income, or economic base. 9.1 Site Selection

B. Are there financial incentives? 1. Incentives are advantages that help businesses. 9.1 Site Selection

 Lower taxes  Cheaper land  Employee training programs

2. States can establish enterprise zones that give tax favored status to new businesses. 9.1 Site Selection

C. What is the makeup of the population? 1. Look for information to show if a location matches a target market. 9.1 Site Selection

2. The Census Bureau’s Standard Metropolitan Statistical Areas (SMSA) are geographic areas that usually include a metropolitan area. 9.1 Site Selection

3. A census tract is a SMSA subdivision containing 4,000 to 5,000 people. 9.1 Site Selection

D. Does the labor supply match your needs? Consider your labor needs and how well the community can meet them. 9.1 Site Selection

II. CRITERIA FOR SITE SELECTION Once a community is determined to be suitable for business, begin looking for sites within it. 9.1 Site Selection

A.A trade area is the region or section of the community from which you can expect to draw your customers. 9.1 Site Selection

B.Number and Size of Competing Businesses - Mark all potential competitors. 9.1 Site Selection

C.Nature of the Competition - Mark all potential competitors. 9.1 Site Selection

1. To encourage comparison shopping, locate your business next to a similar sized competitor. 9.1 Site Selection

2. If you offer a large variety of products, your drawing power may allow you to locate away from the competition.

D.Character of the Area - Consumers like to shop in attractive, safe, and thriving environments. 9.1 Site Selection

E.Accessibility and Traffic - If you find there is no convenient route, or if the site is difficult to locate, customers are not going to reach you. 9.1 Site Selection

IV.SERVICE/WHOLESALE BUSINESS CONSIDERATIONS Similar to retail, except many service and wholesale businesses don’t have clients visiting their site.

9.1 Site Selection Reinforcement Provide examples of large and small trade areas in your community.

9.1 Site Selection V. MANUFATURING/ EXTRACTION BUSINESS CONSIDERATIONS

9.1 Site Selection A. Extraction businesses must be near to whatever they are extracting. 1. Ore 2. Fish 3. Trees

9.1 Site Selection B. A manufacturing firm may be located in certain areas set aside for industrial uses, sometimes called industrial parks.

9.1 Site Selection Reinforcement What are the advantages and disadvantages of an industrial park?

VI. LOCATING POTENTIAL SITES A. Newspapers B. Realtors C. Internet 9.1 Site Selection

D. Visual Surveys E. Contacts 9.1 Site Selection

VII. SITE ANALYSIS AND DECISION MAKING Analyze the surrounding area, the building, and the costs of buying, building, or leasing. 9.1 Site Selection

A. Surrounding Area Analysis - Each potential site you identify should be evaluated on the same basis as your earlier considerations. 9.1 Site Selection

B. Building Evaluation - A building must be big enough to take care of present needs and to allow for expansion. 9.1 Site Selection

C. Exterior - Consider a building’s looks, signage, and parking for customers. 9.1 Site Selection

D. Interior - Look at the walls, floor, and ceiling. 9.1 Site Selection

E. Lease, Buy or Build - There are advantages to leasing over buying or building. 9.1 Site Selection

1. A large cash outlay is avoided. 2. Risk is reduced. 3. Lease expenses are tax deductible. 9.1 Site Selection

F. Making Your Decision - Consider the variables. 1. Cost comparison 2. Advantages and disadvantages 3. Desirability 9.1 Site Selection

VIII. HOME BUSINESS OPTION Working at home is viable under certain conditions. Working at home is viable under certain conditions.

9.1 Site Selection A. When there is little personal contact with consumers B. Where work is picked up and dropped off when completed

9.1 Site Selection End of Section 9.1