1. LOCATE AND SET UP YOUR BUSINESS
Entrepreneurship
4/23/2017
Chapter 8
LOCATE AND SET UP YOUR BUSINESS
8.1 Choose a Retail Business Location
8.2 Choose a Location for a Non-Retail Business
8.3 Obtain Space and Design the Physical Layout
8.4 Purchase Equipment, Supplies, and Inventory
Chapter 8

2. Lesson 8.3 OBTAIN SPACE AND DESIGN THE PHYSICAL LAYOUT
Chapter 8
Lesson 8.3 OBTAIN SPACE AND DESIGN THE PHYSICAL LAYOUT
GOALS
Evaluate leasing versus buying space.
Consider the costs and kinds of leases.
Design the layout for different types of businesses.

3. Chapter 8
Once you choose a location for your business, you will have to lease or buy space. You will also have to design the physical layout of your place of business.

4. LEASE OR BUY SPACE In a lease, there is a tenant and a landlord.
Chapter 8
LEASE OR BUY SPACE
In a lease, there is a tenant and a landlord.
Tenant- pays rent to occupy the space
Landlord- owns and rents out buildings or space.

5. LEASE OR BUY SPACE 3 kinds of commercial leases Gross lease Net lease
Chapter 8
LEASE OR BUY SPACE
3 kinds of commercial leases
Gross lease
Net lease
Percentage lease

6. Chapter 8
Gross lease
Tenant pays rent each month; landlord covers all property expenses.
Expenses include: property taxes, insurance, and building maintenance

7. Net lease Percentage lease
Chapter 8
Net lease
Landlord pays building insurance; tenant pays rent, taxes, and other expenses
Percentage lease
Tenant pays rent plus a percentage of the revenue earned

8. Comparing different locations
Chapter 8
Comparing different locations
Once you have selected possible locations, you will need to compare the costs and benefits of leasing at each location
Calculating Rent per Customer (rent/ # customers)
Monthly rent
Downtown
$925
Shopping Center
$1,100
Proj. cust. traffic
8,500
12,000
Rent per cust.
$0.11
$0.09

9. Analyze Business Locations
Chapter 8
Analyze Business Locations
Choose 1 local business with a good location & explain why it’s good
Choose 1 local business with a bad location & explain why it’s bad & recommend a better location

10. DESIGN THE LAYOUT OF YOUR BUSINESS
Chapter 8
DESIGN THE LAYOUT OF YOUR BUSINESS
After you have leased or purchased a facility, you will need to design your layout. Make sure you have room for:
Employees
Customers
Merchandise
Equipment
Restrooms
Stockrooms
Storage
Offices

11. CREATE THE FLOOR PLAN for your Business
Chapter 8
CREATE THE FLOOR PLAN for your Business
Cash registers
Clothing
Supplies and Inventory
Dressing rooms
Clothing tables
Clothing racks
Counter
Window display
Sample Floor Plan

12. LAYOUT OF A RETAIL BUSINESS
Chapter 8
LAYOUT OF A RETAIL BUSINESS
Choose appropriate lighting
Think carefully about window displays
Make the entrance inviting
Use common sense when organizing the merchandise in your store
Leave at least four feet of aisle space
Create attractive in-store displays
Use wall space wisely
Place the cash register in a central location

13. LAYOUT OF A SERVICE BUSINESS
Chapter 8
LAYOUT OF A SERVICE BUSINESS
Layout is influenced by where services take place:
At the business location (restaurants, hair salon, tax prep)
At the customer’s location—on-site (exterminators, plumbers, cleaning service)

14. LAYOUT OF A WHOLESALE BUSINESS
Chapter 8
LAYOUT OF A WHOLESALE BUSINESS
Locate in a one-story warehouse
Keep merchandise close to the shipping dock
Store popular items in accessible locations
Be sure there are areas that accommodate merchandise of all sizes
Keep walkways free of merchandise
Store items safely

15. LAYOUT OF A MANUFACTURING BUSINESS
Chapter 8
LAYOUT OF A MANUFACTURING BUSINESS
Work teams should be situated close together
Supervisors should be able to easily observe the people they supervise
Exits should be clearly marked and easily accessible
Any hazardous materials should be stored safely
Equipment and machinery should be positioned in a way that reduces the chance of an accident