1. 12-1 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.eduENTREPRENEURSHIP University of Management and Technology 1901 N. Fort Myer Drive Arlington, VA 22209 USA Phone: (703) 516-0035 Fax: (703) 516-0985 Website: www.umtweb.edu

2. 12-2 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu CHAPTER 12: Choosing the Right Location and Layout Zimmerer, T. W and Scarborough, N. M. Essentials of Entrepreneurship and Small Business Management (3rd ed.) Prentice Hall © 2002.

3. 12-3 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Choosing a Location The right region of the country The right state in the region The right city in the state The right site in the city

4. 12-4 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Choosing the Region: Sources of Information Census data World Wide Web http://www.census.gov/ http://govinfo.kerr.orst.edu/ Survey of Buying Power Editor and Publisher Market Guide

5. 12-5 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Choosing the Region: Sources of Information The American Marketplace: Demographics and Spending Patterns Rand McNally's Commercial Atlas and Marketing Guide Zip Code Atlas and Market Planner

6. 12-6 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Geographic Information Systems (GIS) Computerized programs combining map-drawing with database management capability. Search through virtually any database and then plot the results on a map. Visual display reveals otherwise hidden trends.

7. 12-7 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Choosing the State Proximity to markets Proximity to raw materials Wage rates Labor supply needs Business climate Tax rates Internet access

8. 12-8 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Choosing the City Population trends Competition Clustering Compatibility with community Local laws and regulations Transportation networks Police and fire protection Cost of utilities and public services Quality of life

9. 12-9 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Retail and Service Location Considerations Trade area size Retail compatibility Degree of competition Index of retail saturation (IRS) Transportation network Physical, racial, or emotional barriers Political barriers

10. 12-10 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Retail and Service Location Considerations Customer traffic Adequate parking Reputation Room for expansion Visibility continued

11. 12-11 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Retail and Service Location Options Central Business Districts (CBDs) Neighborhood locations Shopping centers and malls Neighborhood shopping centers Community shopping centers Regional shopping centers Power centers

12. 12-12 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Shopping Centers and Malls Neighborhood Shopping Centers 3 to 12 Stores; anchor is supermarket or drugstore Community Shopping Centers 12 to 50 stores; anchor is department or variety store Regional Shopping Malls 50 to 100 stores; anchor is one or more major department stores Power Centers Combines drawing power of a mall with convenience of neighborhood shopping center

13. 12-13 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Retail and Service Location Options Near competitors Outlying areas Home-based businesses continued

14. 12-14 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Manufacturing Locations Foreign trade zones Empowerment zones Business incubators

15. 12-15 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Business Incubators Organizations that combine low-cost, flexible rental space with a multitude of support services for their small business residents. More than 900 in operation across the U.S., and a new one opening, on average, every week. They work!! Firms that “graduate” from incubators have a success rate of 87%. Average incubator houses 20 businesses employing 55 people.

16. 12-16 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Layout: External Factors Adequate size to accommodate business needs. Create the proper image or "personality" for the business in the customer's eyes. Entrances must invite customers to come in.

17. 12-17 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Layout: External Factors Create effective window displays and change them often; they can be powerful sales tools. Must comply with Americans with Disabilities Act. Pay attention to the business sign, the most direct method of reaching potential customers. continued

18. 12-18 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu A Business Sign Tells potential customers who you are and what you're selling. Must comply with local sign ordinances. Should be visible, simple, and clear. Should be changed periodically to avoid becoming part of the background. Should be legible both day and night. Must be maintained properly.

19. 12-19 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Building Interiors Ergonomics is an integral part of any design. Proper layout and design pays off in higher productivity, efficiency, or sales. Proper lighting is measured by what is ideal for the job being done. Careful selection of colors can create the desired impressions among customers and employees. Appealing to all of the customer's senses can boost sales.

20. 12-20 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Three Layout Patterns Grid Rectangular with parallel aisles; formal; controls traffic flow; uses selling space efficiently. Supermarkets and self-service discount stores.

21. 12-21 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Three Layout Patterns Free-Form Free-flowing; informal; creates "friendly" environment; flexible. Small specialty shops.

22. 12-22 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Three Layout Patterns Boutique Divides store into a series of individual shopping areas, each with its own theme; unique shopping environment. Small department stores.

23. 12-23 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Layout Guidelines Know your customers buying habits and plan your layout accordingly. Display merchandise as attractively as your budget will allow. Display complementary items together. Recognize the value of floor space; never waste valuable selling space with nonselling functions.

24. 12-24 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Factors to Consider in Manufacturing Layouts Type of product Type of production process Ergonomic considerations Economic considerations Space availability within the facility

25. 12-25 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Manufacturing Layouts Product layout Process layout Fixed position layout Functional layout