Location decisions Mainly for start up businesses!

Aims… Further detail to factors that influence a businesses’ decision to locate Reinforce key factors…

Using your post-it notes By yourself… Write down a key theory/concept that you can remember from last lesson… Share these with a partner… What do you agree on? What’s different? Share these another pair… What do you agree on? What’s different?

Video clip Working lunch series 15 : 8 location _ hairdresser When you watch this ….. Think about… What were the key factors that influenced the entrepreneur’s choice of location?

When choosing a location for your business, there are a number of important factors to consider: Will the location be accessible to your potential clients? Is there parking nearby? Is there a significant amount of foot traffic passing by your business? Are you near a Metro station, bus stop or major intersection?

When choosing a location for your business, there are a number of important factors to consider: Is the space zoned for your type of business (i.e., industrial, residential, commercial or mixed-use)? Will you have loading bays? Elevators? These are both in Dorking!

When choosing a location for your business, there are a number of important factors to consider: Is the price right? What other amenities are included? Will you have to build to suit or will the landlord outfit the space or provide funds for tenant improvements?

When choosing a location for your business, there are a number of important factors to consider: Do you want to operate your business from home? If so, will the savings associated with running a home-based business allow you more money for your business? Will you be able to reach your clients and customers? Will you be able to run your type of business from home?

Can you think of any benefits and problems of running a business from home?

Working from home Read article & answer 3 questions at the end. 1.Define what is meant by a “start-up”. 2.Identify three different cost savings that a home-based business can enjoy compared with an office-based business. 3.Outline the main factors that would determine when a home based business might need to move out to larger premises.

Exam style questions….

Questions…. Use your whiteboard….??? List 3 types of businesses where it is essential to be based close to the customer.

Questions…. Use your whiteboard….??? List 3 types of businesses where it is essential to be based close to their resources.

Questions…. Use your whiteboard….??? List 3 types of businesses where location is not an important consideration!

Questions…. Use your whiteboard….??? Why might a business want to locate near to its competitors? A row of restaurants

An evaluation style question… Discuss the main consequences of getting the wrong location when starting up a business. (15 marks) What issues would you use in this essay question? Think back to the hotel HWK…

Your task Worksheet Wladek’s gym.

The figures….

The Questions for class discussion…. Q1 – show calculations to prove least cost site! Q2 - Technology – look at the 2 nd row in the table!

The Questions requiring written answers…. Q5 – you need to calculate the total cost for both locations and the total revenue for the projected membership numbers. What are the profit potential if the gym’s reached full capacity?

The Questions requiring written answers…. Q7 – you need to look at the strengths and weaknesses of each location. Include both qualitative and quantitative factors. You need to then justify which location you would advise Wladek to choose!

Your task Worksheet Wladek’s gym. Complete Q’s 5 – 7 for Homework