1. Locate and Set Up Your Business
8.1 Choose a Location
8.2 Obtain Space and Design the Physical Layout
8.3 Purchase Equipment, Supplies, and Inventory

2. Lesson 8.1 Choose a Location
Learning Objectives
8.1-1 Identify options for locating a retail business.
8.1-2 Discuss factors to consider when choosing a location for a nonretail business.
8.1-3 Identify the advantages and disadvantages of having a business online.
8.1-4 Describe steps to take in selecting a site.
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3. Essential Question How do you decide where to locate your business?
Khoa Phan – video animator for vine/twitter
Can run his business from home. Started promoting his videos when twitter purchased vine. The type of media he created can be used for marketing
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4. Good locations come at a price, questions to consider
What are types of jobs that require expensive locations
What are types that don’t require expensive locations
What goes into the price of a location?
If you build it will they come?
Is your business “inside sales” or “outside sales?
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5. Locating a Retail Business
Downtown Areas (usually central) not Miami which makes it difficult.
Issues: crime, traffic, parking, less customers at night
Neighborhood Shopping Centers (strip mall)
Issues: lack of reach
Community Shopping Centers(town & country) have anchor stores like Walmart, kohls – issues might be bad anchor store or higher rent
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6. Locating a Retail Business cont.
Regional Shopping Centers (malls)
Issues: high rent, too distant for convience, mall rules and times.
Super-Regional Shopping Centers (mega malls) malls of American Minnesota 500 stores
Issues: travel too far, not good for small business
Stand-Alone Stores (auto places)
Warehouses (furiniture or appliance dealers
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7. Locating a Nonretail Business
Service Businesses
Sometimes have same consideration as the retail stores i.e. restaurants.
Industrial Businesses
Industrial park: Section of land that is zoned for industrial businesses only
Enterprise zones: Areas that suffer from lack of employment opportunities (so they incentivize these areas with tax breaks)
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8. Locating a nonretail business
Home-Based Businesses
Cost saving
More freedom (from leases for example)
Convenience (hours, cloth, no commute)
Can save and grow a business
Disadvantage:
Limited space
Lack of separation work/life
isolation
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9. Starting a Virtual or Online Business
E-commerce
Buying and selling products or services over the Internet
What are good examples? Do we know anyone who has this?
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10. Starting a Virtual or Online Business (continued)
Advantages of Virtual or Online Businesses
Quick and easy setup
Cost savings
Large customer base
No time restrictions
Ease of data collection
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11. Starting a Virtual or Online Business (continued)
Disadvantages of Virtual or Online Businesses
Special expertise needed
Internet downtime
Security breaches
Old fashion views
Or the need of trials
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12. Starting a Virtual or Online Business (continued)
Virtual or Online Business Precautions
Do not use free web space. Buy it.
Use a creative website that appeals to customers.
Be aware of the loading speed of your website.
Don’t leave outdated information on your website.
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13. Selecting Your Site/location
Buy a map and highlight your trade area
Trade area
The geographic area from which you expect to attract a majority of your customers
Highlight appropriate area in one color and competition in another.
Location Type and Availability
Evaluate the Location
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14. BBQ Story
Things you got to think about? Explain why jimmy t’s rib house failed.
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15. ASSESSMENT 8.1 Why is rent lower in strip malls vs regular malls?
Has advancements in technology made it easier to work from home? If so how?
Why would you highlight your competitors in a trade map?
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16. Lesson 8.2 Obtain Space and Design the Physical Layout
Learning Objectives
8.2-1 Compare purchase and lease options.
8.2-2 Describe layout considerations for different types of businesses.
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17. Essential Question
What should you consider before obtaining property and designing layout.
Store layout issues example: the cloth store that changed the cash register to the back to free up some space. What do you think happen?
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18. Lease or Buy Space Commercial Leases
Tenant: The person who pays rent to occupy space owned by someone else
Landlord: The person who owns and rents out buildings or space
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19. Lease or Buy Space (continued)
Commercial Leases (continued)
Gross lease: The tenant pays rent each month for the space occupied, and the landlord covers all property expenses for that space, such as property taxes, insurance on the building, and building maintenance.
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20. Lease or Buy Space (continued)
Commercial Leases (continued)
Net lease: The landlord pays building insurance, and the tenant pays rent, property taxes, and any other expenses.
Percentage lease: The tenant pays a base rent plus a percentage of revenue each month.
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21. Compare Costs of Doing Business
Compare rents by figuring out the rent per customer.
Rent per month /(divided by) projected customer traffic per month
Sometimes the rent is higher but the rent per customer is better due to better traffic
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22. Design the Layout
Create the Floor Plan (measure everything) measure twice cut once
Layout of a Retail Business
Visual merchandising: The process of combining products, environments, and spaces into an appealing display to encourage the sale of products or services
Ways to send a good message: good lighting, think about window display (new vs seasonal), make entrance inviting, leave at least 4 feet aisle space, organized, attractive in store displays, use wall space wisely, cash register location is important
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23. Layout of a Service Business (home vs away)
The layout for service business that need customers to go to your business ie restaurants are different than travel service business.
Retail types like restaurants need to be treated like retail but space is even more important
On site service need to worry more about organization layouts
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24. Layout of a Wholesale Business
Locate in a one story warehouse
Keep merchandise close to the shipping dock
Store popular items in accessible locations
Secure areas for any size merchandise
Keep walkways free of merchandise
Store items safely: i.e. don't stack too many items
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25. Layout of a Manufacturing Business
Work team areas should be situated close to each other
Supervisors should have good views of workers
Exits should be clearly marked
Hazardous material should be stored carefully
Equipment should be positioned for productivity and safety
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26. Sample Floor Plan
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27. Assessment 8.2
Of the type of leases we discussed what is they type you would prefer and why?
Why draw a floor plan before you set up shop?
What is the better rent per customer
Downtown rent per month $1,200 with traffic of 9,500 per month or
strip mall of rent $2,800 with 18,000 traffic per month?
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28. Lesson 8.3 Purchase Equipment, Supplies, and Inventory
Learning Objectives
8.3-1 Explain how to find and choose vendors for your business.
8.3-2 List factors that determine the needed level of inventory.
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29. Essential question
What should you consider when selecting vendors and purchasing inventory?
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30. Obtain Equipment and Supplies
Inventory
The products that a business sells to its customers as well as the materials needed to make those products
Identify Suppliers
Vendors: Companies that sell products and services to businesses
Evaluate Proposals
Quotes: estimate of the price for merchandise or service
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31. Sample Supply Needs
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32. Purchase Inventory Purchase Inventory for a Startup Business
Purchase Inventory for an Ongoing Business
Reorder point: A predetermined level of inventory that signals when new stock should be ordered
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33. Chapter 8