1. LESSONS ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 LOCATE AND SET UP YOUR BUSINESS 8.1 8.1Choose a Retail Business Location 8.2 8.2Choose a Location for a Non-Retail Business 8.3 8.3Obtain Space and Design the Physical Layout 8.4 8.4Purchase Equipment, Supplies, and Inventory

2. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 2 Lesson 8.1 CHOOSE A RETAIL BUSINESS LOCATION Research retail location possibilities. Begin to select your location. GOALS

3. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 3 LOCATION POSSIBILITIES Downtown areas Neighborhood shopping centers Community shopping centers Regional shopping centers Super-regional shopping centers Stand-alone stores Warehouses

4. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 4 DOWNTOWN AREAS Advantages Central Likely to attract business shoppers Disadvantages Parking problems Distance from suburbs Crime Lack of evening shoppers

5. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 5 NEIGHBORHOOD SHOPPING CENTERS Advantages Supermarkets and other businesses bring in customers Low rent Disadvantages Attracts only customers who live in area

6. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 6 COMMUNITY SHOPPING CENTERS Advantages Anchor stores bring in customers Moderate rent Disadvantages Distance is too great when convenience is important

7. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 7 REGIONAL SHOPPING CENTERS Advantages Anchor stores bring in customers Walk-in traffic Attracts customers from a large area Disadvantages Distance is too great when convenience is important High rent

8. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 8 SUPER-REGIONAL SHOPPING CENTERS Advantages Huge number of customers Services a large area Disadvantages Very high rent Competition from many companies Distance is too great when convenience is important

9. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 9 STAND-ALONE STORES Advantages Rent can be lower No competition next door Disadvantages No anchor store to attract customers Extra expense of advertising

10. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 10 WAREHOUSES Advantages Low rent Can charge lower prices than competition Disadvantages No anchor store to attract customers Requires heavy advertising Customers may not be aware of your business

11. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 11 BEGIN SELECTION OF YOUR SITE The trade area is the area from which you expect to attract customers. Location type and availability

12. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 12 QUESTIONS TO ASK Is the location safe? Is it attractive? Does it seem to attract the kind of customers your business will be targeting? Is it easy to reach? Is parking adequate? Do businesses in the vicinity seem to be thriving?

13. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 13 Lesson 8.2 CHOOSE A LOCATION FOR A NON-RETAIL BUSINESS Examine a location for a service business. Select a location for an industrial business. Operate your business from your home. GOALS

14. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 14 LOCATION FOR A SERVICE BUSINESS For some service businesses, location is as important as it is for a retail business. Is location always important?

15. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 15 LOCATION FOR AN INDUSTRIAL BUSINESS Industrial parks are sections of land that can be used for industrial business locations. Enterprise zones are areas that suffer from lack of employment opportunities.

16. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 16 OPERATE YOUR BUSINESS FROM HOME Zoning laws Office space considerations Advantages and disadvantages

17. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 17 Lesson 8.3 OBTAIN SPACE AND DESIGN THE PHYSICAL LAYOUT Evaluate leasing versus buying space. Consider the costs and kinds of leases. Design the layout for different types of businesses. GOALS

18. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 18 LEASE OR BUY SPACE Kinds of commercial leases Gross lease Net lease Percentage lease Compare different locations Calculating rent per customer

19. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 19 DESIGN THE LAYOUT OF YOUR BUSINESS Your layout must include enough space for: Employees Customers Merchandise Equipment Restrooms Stockrooms Storage Offices

20. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 20 CREATE THE FLOOR PLAN Sample Floor Plan Cash registers Clothing Supplies and Inventory Dressing rooms Clothing tables Clothing racks Counter Window display

21. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 21 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

22. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 22 LAYOUT OF A SERVICE BUSINESS Layout is influenced by where services take place: At the business location At the customer’s location—on-site

23. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 23 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

24. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 24 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

25. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 25 Lesson 8.4 PURCHASE EQUIPMENT, SUPPLIES, AND INVENTORY Acquire equipment and supplies by evaluating different vendors. Determine the level of inventory needed for your business. GOALS

26. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 26 OBTAIN EQUIPMENT AND SUPPLIES Identify suppliers Evaluate proposals

27. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 27 STANDARD EQUIPMENT AND SUPPLY NEEDS FOR MOST BUSINESSES TYPEITEMS FurnitureDesks, chairs, bookcases, filing cabinets, tables, computer stands FixturesLamps, overhead lights Office EquipmentComputers, modems, fax machines, telephones, photocopiers Office SuppliesStationery, pens and pencils, scissors, tape, staplers, paper clips, file folders, calendars Maintenance SuppliesToilet paper, paper towels, cleaning supplies Kitchen SuppliesCoffee maker, small refrigerator, coffee, tea

28. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 8 Slide 28 PURCHASE INVENTORY Inventory is the quantity of goods and materials on hand Purchase inventory for Start-up business Ongoing business The reorder point is a predetermined level of inventory when new stock must be purchased.