Ch. 8 Location


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Ch. 8 Location

  1. 1. Chapter 8 –Choosing a Location Business Ownership Spring 2007 Williams C. Greene, (2000). Entrepreneurship Ideas in Action. Cincinnati, OH: South-Western.
  2. 2. Lesson 8.1 Choose a Retail Business Location <ul><li>Choosing a location for your business can be very beneficial for you as a entrepreneur. </li></ul><ul><li>Choosing a bad location can be disastrous. </li></ul><ul><li>The type of area you choose will depend on the kind of business you operate and the type of people in your community. </li></ul><ul><li>(pg. 166) </li></ul>
  3. 3. Downtown Areas <ul><li>Downtown areas represent central location opportunities you may want to consider. Offices and professional businesses are located in downtown areas. </li></ul><ul><li>Many downtown areas have disadvantages such as; traffic, lack of parking, and crime. </li></ul><ul><li>(pg. 166) </li></ul>
  4. 4. Neighborhood Shopping Centers <ul><li>These are shopping centers are small shopping centers that serve a certain neighborhood. </li></ul><ul><li>These centers represent good locations for stores selling goods or services that people need to purchase frequently. </li></ul><ul><li>(pg. 166) </li></ul>
  5. 5. Community Shopping Centers <ul><li>Community shopping centers are designed to serve residents of many neighborhoods. </li></ul><ul><li>Community centers usually have one or two major tenants, known as anchor stores like; </li></ul><ul><ul><li>Department stores (Dillard’s, Macy’s) </li></ul></ul><ul><ul><li>Discount stores (Wal-Mart, K-Mart) </li></ul></ul><ul><ul><li>(pg. 167) </li></ul></ul>
  6. 6. Regional Shopping Centers <ul><li>Regional shopping centers are designed to attract customers from an entire region. </li></ul><ul><li>These large shopping areas usually have three or four anchor stores and more than 40 other stores. (Example: Malls) </li></ul><ul><li>(pg. 167) </li></ul>
  7. 7. Stand-Alone Stores <ul><li>Stand-alone stores can be located just outside of shopping centers or far away from other businesses. </li></ul><ul><li>They must have plenty of parking, good signs, and effective lighting. </li></ul><ul><li>(pg. 168) </li></ul>
  8. 8. Warehouses <ul><li>Some retail stores, such as appliance dealers or furniture sellers operate in warehouses. </li></ul><ul><li>Locating your business in a low-rent warehouse may allow you to charge lower prices than your competition. </li></ul><ul><li>See Table on pg. 168 for advantages and disadvantages of locations </li></ul>
  9. 9. Selection of Your Site <ul><li>Question: Given all the possible types of locations for retail business, how do you decide where to locate your business. </li></ul><ul><li>The trade area is the area from which you expect to attract customers. (pg. 169) </li></ul><ul><li>Use of a map to mark your trade area: </li></ul>Businesses That Attract Same Customers Competitors X Proposed Location X X X X
  10. 10. Choose a Location for a Non-Retail Business <ul><li>For some service businesses, such as restaurants or hair salons, locations is as important as it is for a retail business. </li></ul><ul><li>Convenience is an important factor for many service businesses. </li></ul><ul><li>If customers never actually visit some service businesses then location is not that important. </li></ul><ul><li>(pg. 171) </li></ul>
  11. 11. Lesson 8.3 Obtain Space and Design Layout <ul><li>Once you choose a location for your business, you will have to lease or buy space. </li></ul><ul><li>(pg. 174) </li></ul>
  12. 12. Lets Take a Real Look at Location <ul><li>Tell me why Sonic is so popular for students of King H.S. </li></ul><ul><li>What about McDonalds? </li></ul>
  13. 13. Commercial Leases <ul><li>In a lease contract, there is a tenant and a landlord. </li></ul><ul><li>The tenant is the person who pays rent to occupy space owned by someone else. </li></ul><ul><li>The landlord is the person who owns and rents out buildings or space. </li></ul><ul><li>(pg. 174) </li></ul>
  14. 14. Design the Layout of Your Business <ul><li>For a retail business, appearance is very important in the design of their store. </li></ul><ul><li>Appearance is less important in non-retail stores. </li></ul>
  15. 15. Retail Floor Plan <ul><li>See Sample Floor Plan on pg. 176 </li></ul>Cash Register Storage Shoe Rack Shoe Rack Clothing Racks Dressing Rooms Rest Rooms Clothing Table Window Displays Seating Area Table Display New Shoe Display