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Business Location - Training Transcript


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The idea of owning running a business is exciting and can be very rewarding. However, becoming a successful business owner can also be very challenging. It requires the right mindset, perspective, attitude, traits & know-how.

Our Free Business Training is designed to give you an insight into what it means to own a business and provide you with the basics to get you started off on the path to success.

This compact but complete 10 session program will cover topics from accessing if business ownership is the right path for you, planning, opening your business to growing and expanding.

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Business Location - Training Transcript

  1. 1. 1 Business Location Training TranscriptNOTICE: You DO NOT Have the Right to Reprint, Re-Distribute or Resell the Information Herein. YouAlso MAY NOT Give Away, Sell, or Share the Content Herein Without Written ConsentCopyright © Baanabaana Business AgencyALL RIGHTS RESERVED. No part of this material may be reproduced or transmitted in any form whatsoever, electronic,or mechanical, including photocopying, recording, or by any informational storage or retrieval system without expressedwritten, dated and signed permission from the author and/or without proper accreditation.DISCLAIMER AND/OR LEGAL NOTICES: The information presented in this report represents the views of the publisher asof the date of publication. The publisher reserves the rights to alter and update their opinions based on new conditions.This report is for informational purposes only. The author and the publisher do not accept any responsibilities for anyliabilities resulting from the use of this information. While every attempt has been made to verify the informationprovided here, the author and the publisher cannot assume any responsibility for errors, inaccuracies or omissions. Anysimilarities with people or facts are unintentional.AFFILIATE DISCLAIMER: Baanabaana Business Agency may receive compensation from some of the entities listed in thisreport for referrals, as their “thank you” for sending you their way. However, Baanabaana Business Agency neverrecommends any service or product solely for the reason of receiving commissions (and neither should you) –Baanabaana Business knows our reputation is on the line.(Slide 1) Free Online Business Training - Week Two - Writing Your Business Plan | | @Baanabaana |
  2. 2. 2WelcomeHi everyone! Welcome to Week 6 of our Free Business Start Up Training webinar series.(Slide 2)Training OverviewLast week we learned about what I call the heart of any business, financing your business andmoney management. We talked about why it is important for you, as the business owner tohave the knowledge and skills necessary to understand, communicate, plan and manage thefinancial aspect of your business. We also learned some of these vital skills such as pricingyour product or services, calculating your breakeven point etc.This week we will move on to finding the perfect location for your business – what to consider,the options, how to go about selecting the “best”, what to avoid etc.(Slide 3)TopicsThe 4th P In The MixDistribution ChannelsSelection CriteriaCyber SpacesLeases & ContractsWhat To Do / What Not To Do(Slide 4)The 4th PBusiness locations, also call Place is the 4th P in the Marketing Mix, a business tool used bymarketing professionals. Locations decisions are not and should not be made independently,but as part of your business’s overall marketing plan. Deciding how your product or serviceswill get into the hands of your customers must be aligned with your marketing strategy. Free Online Business Training - Week Two - Writing Your Business Plan | | @Baanabaana |
  3. 3. 3Your location considerations must be consistent with the type of product or service you offer,the image your want to establish in the minds of your customers, the quality and price of yourofferings. For example, if you plan on selling handmade, premium quality leather shoes, youprobably should not consider selling them at the local weekend flea market, even if the spaceis free of charge!Location is also not just about the overall neighborhood and surroundings but also about thespecific details of the space where your products or services are offered and the packaging. Ifyou an attorney representing low income immigrant families for example, your clients mayfeel rather uncomfortable coming to your luxury office suite complete with a doorman in theposh part of town, if they can afford to even get there.It is also important to bear in mind that no matter how great a location you find, no matterhow perfect it fits in the mix, it has to be economically viable. You have to be able to afford it.(Slide 5)Distribution ChannelsWho you sell your product or services directly to also has a part to play in your locationconsiderations. Whether you choose to sell directly to consumers, retailers or wholesalers /manufacturers, each would a different impact on your choice of location as well as advantagesand disadvantages for your business.Selling direct to consumers through a retail outlet, door-to-door, mail order or the Internetmay require a store front, inventory storage facilities, an e-commerce website, and/or aperiodic catalog to put your wares in the hands of your customers. The expenses involved inthese can add up but you will get first hand feedback about your product/service and thedelivery channels straight from the horse’s mouth which will allow you to make adjustments.When you sell directly to retailers who would in turn sell your products to the end user, youwill be spared some of the expenses associated with selling directly to the consumer but youwill be one step remove from the consumer thus delaying the vital feedback that can help infine tuning your products. Free Online Business Training - Week Two - Writing Your Business Plan | | @Baanabaana |
  4. 4. 4If you choose to sell to wholesale companies or your products become part of a larger finishedproduct, you would tend to worry less about locations and distributions systems but yourproduction and sales volumes would be larger. The downside to this channel is loss of brandor identity. Nobody knows the company that supplies screws to Ikea, the internationalSwedish DIY furniture company for example.(Slide 6)Selection CriteriaThe criteria for selecting a location are not universal. The things you’d consider and questionsyou’d ask yourself would depend on the nature of your business. Regardless, some questionsto ask when deciding on a location could be: Zoning – would you need a permit and would you be able to get one Neighborhood – what is the demographics of the neighborhood you are looking into? – high/middle/low end income, population, etc. Does this match you positioning? Competitors - How close are they? Traffic – high/low traffic area – for both cars and pedestrians? Parking area. Free, paid? Public transportation? What utility are available services? Will a shared space work? Is there room for expansion?Be sure to walk through the area and talk to other business owners, customers, landlords,employees to get more insight into the potential of the location(Slide 7)Cyber SpacesIf your business is an online business, some of the costs, considerations and selection criteriathat you’d consider for a physical location will obvious not apply but there still has to be someplanning and your website will still need to be aligned with your marketing strategy. If yourpositioning is high end for example, you cannot just get a free website under another domain Free Online Business Training - Week Two - Writing Your Business Plan | | @Baanabaana |
  5. 5. 5name such as Things to consider before choosing to create acyber location are: Are you customer even online to begin with? Online market places (eBay, Amazon, Etsy) or build your own site Payment systems – what payment systems works best for your customer base? For example, Paypal may not be available in some countries Shipping and handling – if you have to mail products, how reliable is your mailing system? Who pays for shipping and handling feesCyber space can be a secondary/complementary location or a space to provide additionalinformation.(Slide 8)Leases & ContractsThere is no doubt that the ideal location for most small business owners would be their ownspace such as their home or on property they own. This is not always possible however. Forexample, you may have a big useable garage but zoning restrictions will not allow you to setup a carpentry workshop. Or you may have been using your garage to sort, package and mailout your Internet sales orders but now business is growing and you are running out of space toaccommodate your 5 new employees.In this case and in most cases, you will need to rent/lease a space and the leasing terms andcontract can make or break your business because rent is probably going to be one of yourlargest monthly expense. For example if you are not successful in your first location but yousigned a 5 year contract, the cost of breaking that lease can cost you your business. Somethings to consider before signing a lease are: It the rent fair for the location? Pay fair rent for good location, not cheap rent for a bad location Are your lease terms flexible to allow for growth or downsizing if necessary? Free Online Business Training - Week Two - Writing Your Business Plan | | @Baanabaana |
  6. 6. 6 Consider consulting with a real estate lawyer – contract can be complicated, having a professional helping you negotiate terms can save you a lot of money and hassle in the future(Slide 9)What To Do / What Not To DoDo Don’t  make sure the location is in line with  don’t forget to align with your budget your marketing plan  focus on rent alone  walk the area and talk to others  go online if your customer are not there  make sure your specific needs will be  be hasty met  rely on realtors or landlords for advice  consider room for expansion  seek legal advice before you sign a lease(Slide 10)This completes our session today. Once again thank you all for being here and we hope youfound this session helpful. Please join us again next week when we will be talking about the allimportant location, location, location. As always, please help us improve this training by givingyour feedback in the survey at the end of this training.Have a great weekend! Free Online Business Training - Week Two - Writing Your Business Plan | | @Baanabaana |