4 steps in choosing a store location evaluate residents and existing retailers shopping center or...
TRANSCRIPT
4 Steps in Choosing a Store Location
Evaluate residents and existing retailersShopping Center or standaloneSelect location according to nature of
businessAnalyze sites in specified location type
Site Evaluation Checklist
Customer
Traffic
Number of people
Purchasing power of customers
Psychographic types of customers
Vehicular
Traffic
Numbers of vehicles
Traffic congestion
Type on vehicle in-out
Parking Facility
Numbers of parking spots
Walking distance to store
Availability of employee, truck loading
Site Evaluation
Transportation Accessible by public transportation
Ease of delivering and loading
Mass Transit
Store Composition
Competition around
Retail balance
Numbers and sizes of stores in area
Occupancy Rent or lease?
Maintenance costs
Size, shape, of lot vs. rental charge
9-3
Small Business Management, 11th editionLongenecker, Moore, and Petty© 2000South-Western College Publishing
Finding an Optimum Location for a Small Business
Personal PreferencePersonal
Preference• Work at home• Friends and
relatives nearby• Lifestyle advantages
Customer AccessibilityCustomer
Accessibility
• Convenience for targetcustomers
Environmental Conditions
Environmental Conditions
• Laws and taxes• Weather• Competition
Resource AvailabilityResource
Availability
• Incubator orleasing options
• Raw materials• Transportation• Labor supply
Site Availability and Costs
Site Availability and Costs
9-4
Small Business Management, 11th editionLongenecker, Moore, and Petty©2000South-Western College Publishing
Leasing vs. Buying
Advantages of Buying
1. Freedom to design or modify structure
2. Guaranteed location
3. Hedge against inflation
Advantages of Leasing
1. Conserving cash
2. Minimizing risk
9-4
Factors Influencing Choice of Location
Proximity to target market
Condition of the neighborhood
Condition of the property
Parking
Traffic patterns
Reliability of landlord if leasing
Location of competitors
Conditions of the leases
Taxes
Square footage available
Storage space
Access to employees
Local area business climate
Promotion for Each Type of Location
Shopping Center
Business District
Stand-Alone
Prominent display & good signage Focus on variety not pricing
Quick service & easy menuNew promotion to attract visit
Destination place with deep selection of itemsCompetitive pricing to attract customers
9-6
Building Layout
Factory Layout Retail Store Layout
Processlayout
Productlayout
Grid pattern
Free-flowpattern
9-7
Grid Pattern of Store Layout
Display Racks
Racks
Racks
RestroomsStorageOffice
Display
Display R
acks
Check-out
Door
Door
9-8
Free-Flow Pattern of Store Layout
Door
Door
Racks
Display Racks
Check-out
Office
StorageStorage
Display
Table
EquipmentRefers to implements used in a business’s
operation. Includes machinery and tools needed to carry
out the main physical labor of a business. Forklifts, mechanic’s tools, and computers are all equipment in this sense.
Equipment also includes things used in managing the business or selling its products.This means that furniture and appliances (like
telephones and hairdryers) are equipment.
Fixturesattached to the building or thought of aspart of it (like ceiling lights and display cases).
Suppliesare items that are used up in the operation of the
business. They may also support the administrative side of the
operation. (Materials like computer paper, pens, or paper clips, shampoo.)
Inventoryrefers to merchandise purchased by a business for
eventual resale.