20140325080300Location plan.ppt

2008 Cengage Learning. All rights reserved.9*Looking AHEADDescribe the five key factors in locating a brick-and-mortar startup.Discuss the challenges of designing and equipping a physical facility.Understand both the attraction and the challenges of creating a home-based startup.Understand the potential benefits of locating a startup on the Internet.After you have read this chapter, you should be able to:

2008 Cengage Learning. All rights reserved.

2008 Cengage Learning. All rights reserved.9*Locating the Brick-and-Mortar StartupBrick-and-Mortar StoreThe traditional physical store from which businesses have historically operated.The Importance of the Location DecisionHigh cost of constructing a physical location.Effect of poor location on eventual success of the firm.Type of business affects the importance of business location to customers.


2008 Cengage Learning. All rights reserved.9*Key Factors in Selecting a Good LocationCustomer AccessibilityCustomer convenience (high traffic) Access by targeted customers (niche market) Business Environment ConditionsClimate-related factors Business environment factorsPresence of established competitorsRegulations, legal requirements and restrictionsTax structure, exemptions, and incentives


2008 Cengage Learning. All rights reserved.9*Key Factors in Selecting a Good LocationAvailability of ResourcesNearness to raw materialsAvailability of a suitable labor supplyAccess to adequate and reliable transportationPersonal Preference of the EntrepreneurFamiliarity with home community environmentSupport of entrepreneur by the community Desire for a particular lifestyleContribution to the community


2008 Cengage Learning. All rights reserved.9*Key Factors in Selecting a Good LocationSite Availability and CostsDifficulty of locating a good siteBusiness incubator: shared space, services, and management assistance for new businessesBuying: large costs for and commitment required to purchase site outright.Advantages of leasing:Avoids a large cash outlay.Allows the owners to postpone committing to the site before the business becomes a success.


2008 Cengage Learning. All rights reserved.9*Other Factors in Selecting a LocationNeighbor MixWhos next door?Security and SafetyHow safe is the neighborhood?ServicesIs there municipal trash pickup?Past Tenants FateWhat happened to them?The Life-cycle Stage of the AreaIs the site in the embryonic, mature, or declining stage?


2008 Cengage Learning. All rights reserved.9*Designing and Equipping the Physical FacilitiesDesign Requirement ChallengesPhysical facilities should be of adequate size and accommodation; not too large or too luxurious.Considerations:Age/condition of building Fire hazardsHeating/air conditioning Entrances and exitsLighting and restroom facilitiesThe ideal building meets the functional requirements of the business and projects the appropriate image to customers and the public at large.


2008 Cengage Learning. All rights reserved.9*Small Business Owners Choose Buying over Leasing9-3Source: Richard Breeden, Small Businesses Favor Buying over Leasing, Wall Street Journal, February 24, 2004, p. B11.


2008 Cengage Learning. All rights reserved.9*Equipping the Physical FacilitiesManufacturing EquipmentGeneral purpose equipmentServes many functions in the production systemLow purchase costFlexible productionGood resale valueSpecial-purpose equipmentAre designed to serve specialized functions in the production processLow labor cost High hourly output Limited resale value


2008 Cengage Learning. All rights reserved.9*Retail Store and Office EquipmentRetailDisplay racksSales countersCash registers/ POS systemsImageLuxury/utilitarian customer furnishingsLightingDisplaysSignageOffice EquipmentComputersFax machinesCopiers and printersTelephone systemsFiling cabinets


2008 Cengage Learning. All rights reserved.9*Locating the Startup in the Entrepreneurs HomeHome-Based BusinessA business that maintains its primary facility in the residence of its ownerAttraction of a Home-Base BusinessLow start-up and overhead costsConvenience for family and lifestyleTechnologyAdvances in office equipment allow home-based business to compete with commercial sites.


2008 Cengage Learning. All rights reserved.9*Entrepreneurs Reasons for Operating a Home-Based Business9-4Source: Home-Based Business: The Hidden Economy, The Small Business Advocate, Vol. 19, No. 2 (Spring 2000), p. 6; and http://www.perfectsystem.co.uk, accessed June 20, 2007.


2008 Cengage Learning. All rights reserved.9*Home-Based BusinessesChallengesBusiness image of a home-based businessProfessional image is difficult to maintain in a home environment.Legal considerationsLocal laws and zoning ordinances prohibit many types of home-based businesses.Family and business conflictsThe need to observe regular business hours and establish spatial boundaries (specific work areas) to avoid distractions.


2008 Cengage Learning. All rights reserved.9*Locating the Startup on the InternetE-CommerceThe paperless exchange of business information via the Internet.InternetA huge, loosely connected computer network that links smaller networks all over the world.World Wide Web (WWW)A system of Internet servers accessible with browsers, which navigate via hypertext links.


2008 Cengage Learning. All rights reserved.9*Benefits of E-Commerce to Small FirmsProvides the opportunity to compete with larger firms in larger markets.Build better customer relationships through better service.Electronic Customer Relationship Marketing (eCRM)An electronically based system that emphasizes customer relationships.


2008 Cengage Learning. All rights reserved.9*Types of Customers ServedBusiness-to-Business (B2B) ModelA business model based on selling to business customers electronically.Business-to-Consumer (B2C) ModelA business model based on selling to final customers electronically.Auction SitesWeb-based businesses offering participants the ability to list products for bidding.


2008 Cengage Learning. All rights reserved.9*Selling Your Item on eBay9-7Step 1:Register as an eBay member, then click the Sell link at the top of any page.Step 2:Gather information and digital pictures for your item description.Step 3:Write your title and item description.Step 4:Pre-pack your item to determine its shipping weight (but dont seal it yet).Step 5:Choose the methods of payment you will accept; PayPal is the fastest and safest.Source: http://www.eBayuniversity.com, accessed December 20, 2006.


2008 Cengage Learning. All rights reserved.9*Top 10 Online Auction Sites9-81.eBay2.Ubid3.Bidz.com4.Yahoo auctions5.MSN auctions6.Amazon.com7.Auctionweiser8.Auction Addict9.Auction-warehouse10.Auctonet.comSource: http://www.auctions.nettop20.com, accessed December 2006.


2008 Cengage Learning. All rights reserved.9*Degree of Online PresenceContent/Information-Based ModelA business model in which the Web site provides information but not the ability to buy or sell products and services.Transaction-Based ModelA business model in which the Web site provides a mechanism for buying or selling products or services.24/7 E-Tailing: electronic retailing providing round-the- clock access to products and services


2008 Cengage Learning. All rights reserved.9*Key TERMSbrick-and-mortar storeenterprise zonesbusiness incubatorgeneral-purpose equipmentspecial-purpose equipmenthome-based businesszoning ordinancese-commerceElectronic Customer Relationship Marketing (eCRM) business modelbusiness-to-business (B2B) modelbusiness-to-consumer (B2C) model24/7 e-tailingauction sitescontent/information-based modeltransaction-based model


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20140325080300Location plan.ppt

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