Zoning Laws & Site Selection

Zoning Laws What are zones? –Particular areas in a community designated for a particular use Why do we have zoning laws? –To protect the environment –To protect values of homes and businesses –Define the type and style of signs

Land Uses Agricultural Residential Commercial Industrial Public

Factors in Site Selection Favorable economic base (main source of income) Financial incentives (advantages that help the business) –Lower taxes –Cheaper land –Employee training programs –Establishment of enterprise zones— tax-favored status to new businesses

Population makeup –SMSA—Standard Metropolitan Statistical Areas—from Census Bureau’s Census Basics Census tracts—subdivisions of SMSAs containing people Labor supply –Skills needed –Numbers

Criteria for Site Selection Retail Business considerations –Trade area—region or section of community from which you can expect to draw your customers –Considerations within trade area Number & size of competing businesses Nature of the competition Character of the area Accessibility and traffic

Service/Wholesale Business considerations –When customers come to you— same considerations as retail business –If customers do not come to you—avoid expensive, high- profile locations

Manufacturing/Extraction Business considerations –Nature of your business –Extraction—near whatever extracting –Manufacturing—zoning laws— industrial parks –Concerned with transportation routes, sources of supply

E-commerce Located almost anywhere Similar to service & wholesale Look at size of operation to decide how big your space will be

Locating Potential Sites Newspapers Realtors Internet Visual surveys Contacts

Site Analysis & Decision Making Surrounding Area Analysis Building Evaluation –Exterior –Interior Will you Lease? Buy? Or Build? Advantages of Leasing –Avoid a large cash outlay –Reduce risk –Tax deductible

Making your Decision Cost comparison Advantages & disadvantages Desirability

Home Business Option Debbie Fields—Mrs. Fields Cookies Steven Jobs & Steve Wozniak—Apple Computers Advantage—financial For certain types of business Factors: –Type of business –Space & equipment available –Effect on others living in community