Site Selection & Layout Planning

Community & Site Selection Factors in Community Selection Location Make or Break Decision May Be Permanent Customer Access Who sees Your Business

Community & Site Selection 4 Key Questions Is the Economic Base Favorable? Economic base: major industries that provide jobs Primarily industrial or primarily service oriented Growing or declining?

Community & Site Selection 4 Key Questions Are there financial incentives? Incentive: reward or advantage that helps business Lower taxes, cheaper land, employee training programs State may establish a enterprise zones in selected towns (give business tax favored status)

Community & Site Selection 4 Key Questions What is the Makeup of the Community? Is the population aging as young people move away or young families moving in? Determines who will spend, how much, and on what items Census tract: small geographic area into which a state or county is divided for the purpose of gathering and reporting census data (sample on page 180)

Community & Site Selection 4 Key Questions Does the Labor Supply Match Your Needs? How many employees do I need? Is there sufficient labor to meet my needs? Does the local population have the appropriate skills for my business?

Community & Site Selection Criteria for Site Selection Retail Business Considerations Number & size of competing businesses: how many, how big Nature of competition: similar, major differences Character of area: attractive, inviting Accessibility & traffic: convenient, easy to find, easy to enter/exit, volume of cars or foot traffic

Community & Site Selection Criteria for Site Selection Service/Wholesale Businesses Considerations Hair salon, dry cleaners, etc. type of service businesses similar to retailers Service businesses, distributors, and wholesalers with little or no customers contact: low visibility locations Go to client to perform service Use sales reps to visit customers

Community & Site Selection Criteria for Site Selection Manufacturing/Extracting Business Considerations Location based on nature of business Extraction business: located near resources Manufacturing business: location based on zoning law, usually an industrial park Must have easy access to transportation and highways

Community & Site Selection Criteria for Site Selection E-Business Considerations Unique businesses, locate anywhere Traffic not a consideration, traffic generated by internet Factors: size of the business Shipping: UPS, FedEx, Post Office

Locating Potential Sites Classified Section of Newspaper Realtors who specialize in business properties Personal Search Networking with business community Internet Search

Site Analysis & Decision Making Surrounding Area Analysis characteristics & traits of the area specific to the site Building Evaluation physical condition of the interior and exterior of the site

Site Analysis & Decision Making Lease, Buy, or Build? Advantages of leasing outweigh other options in most instances Large cash outlay avoided Risk is reduced Lease expenses are tax deductible Terms of the Lease Monthly rent, length, provisions for termination, insuring risks, remodeling costs, repairs Attorney review of contract * buying/building costs higher

Site Analysis & Decision Making Making Your Decision Examine & Compare Variables for each site Cost Comparison: cash outlay, monthly expenses Advantages/Disadvantages Desirability: intangibles (atmosphere, character, convenience, personal preferences)

Layout Planning Physical Layout Well planned layout Well planned layout Efficient operation Efficient operation Appealing sales floor Appealing sales floor Customer convenience Customer convenience Layout: floor plan that shows the arrangement of a business Layout: floor plan that shows the arrangement of a business Intended use of space Intended use of space Interior & exterior layout create image Interior & exterior layout create image Must comply with zoning, building, and safety standards including access for people with disabilities Must comply with zoning, building, and safety standards including access for people with disabilities

Layout Planning Basic Steps In Layout Planning Basic Steps In Layout Planning Define the objective of the facility Define the objective of the facility Identify the primary and supporting activities that will take place in the facility Identify the primary and supporting activities that will take place in the facility Determine the interrelationships-access, arrangement, and flow-between activities Determine the interrelationships-access, arrangement, and flow-between activities Determine space requirements for all activities Determine space requirements for all activities Design alternative layouts for the facility Design alternative layouts for the facility Evaluate various layouts and choose one Evaluate various layouts and choose one

Layout Planning Layout Needs & Possibilities Layout options and considerations differ for business types Layout options and considerations differ for business types Manufacturing Manufacturing Retail Retail Wholesaler Wholesaler Service Service Extraction Extraction E-Business E-Business

Layout Planning Finishing Touches Facade: exterior of building Facade: exterior of building Interior Storage Interior Storage Office Space Office Space 1. Open Office: based on cost, space, supervision, access to files, equipment etc 2. Closed Office: based on need for privacy and noise reduction 3. Appointments: furniture, equipment, accessories

Layout Planning Finishing Touches Charting Equipment, Furnishings, & Supplies Charting Equipment, Furnishings, & Supplies 1. Placement of components based on operational needs Detailing Interior & Exterior Detailing Interior & Exterior 1. Interior: creates atmosphere: lighten, wall and floor coverings, decorative accessories 2. Exterior: entry, signage, facade