1. PowerPoint Presentation  Section 9.1  Pages 141- 149

2. 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

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

4. 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

5. 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

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

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

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

9.  Lower taxes  Cheaper land  Employee training programs

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

11. 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

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

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

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

16. 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

17. 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

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

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

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

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

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

23. 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

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

25. 9.1 Site Selection Reinforcement Provide examples of large and small trade areas in your community.

26. 9.1 Site Selection V. MANUFATURING/ EXTRACTION BUSINESS CONSIDERATIONS

27. 9.1 Site Selection A. Extraction businesses must be near to whatever they are extracting. 1. Ore 2. Fish 3. Trees

28. 9.1 Site Selection B. A manufacturing firm may be located in certain areas set aside for industrial uses, sometimes called industrial parks.

29. 9.1 Site Selection Reinforcement What are the advantages and disadvantages of an industrial park?

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

31. D. Visual Surveys E. Contacts 9.1 Site Selection

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

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

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

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

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

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

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

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

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

41. 9.1 Site Selection A. When there is little personal contact with consumers B. Where work is picked up and dropped off when completed

42. 9.1 Site Selection End of Section 9.1