Chapter 8
LOCATE AND SET UP
YOUR BUSINESS
LESSONS
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
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Chapter 8
Slide 2
Lesson 8.1
CHOOSE A RETAIL
BUSINESS LOCATION
GOALS
Research retail location
possibilities.
Begin to select your
location.
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Chapter 8
Slide 3
LOCATION POSSIBILITIES
Downtown areas
Neighborhood shopping centers
Community shopping centers
Regional shopping centers
Super-regional shopping centers
Stand-alone stores
Warehouses
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Slide 4
DOWNTOWN AREAS
Advantages
Central
Likely to attract business shoppers
Disadvantages
Parking problems
Distance from suburbs
Crime
Lack of evening shoppers
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Slide 5
NEIGHBORHOOD
SHOPPING CENTERS
Advantages
Supermarkets and other businesses bring
in customers
Low rent
Disadvantages
Attracts only customers who live in area
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Chapter 8
Slide 6
COMMUNITY
SHOPPING CENTERS
Advantages
Anchor stores bring in customers
Moderate rent
Disadvantages
Distance is too great when convenience is
important
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Chapter 8
Slide 7
REGIONAL
SHOPPING CENTERS
Advantages
Anchor stores bring in customers
Walk-in traffic
Attracts customers from a large area
Disadvantages
Distance is too great when convenience is
important
High rent
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Chapter 8
Slide 8
SUPER-REGIONAL
SHOPPING CENTERS
Advantages
Huge number of customers
Services a large area
Disadvantages
Very high rent
Competition from many companies
Distance is too great when convenience is
important
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Chapter 8
Slide 9
STAND-ALONE STORES
Advantages
Rent can be lower
No competition next door
Disadvantages
No anchor store to attract customers
Extra expense of advertising
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Chapter 8
Slide 10
WAREHOUSES
Advantages
Low rent
Can charge lower prices than competition
Disadvantages
No anchor store to attract customers
Requires heavy advertising
Customers may not be aware of your
business
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Chapter 8
Slide 11
BEGIN SELECTION OF YOUR SITE
The trade area is the area from which
you expect to attract customers.
Location type and availability
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QUESTIONS TO ASK
 Is the location safe?
 Is it attractive?
 Does it seem to attract the kind of customers
your business will be targeting?
 Is it easy to reach?
 Is parking adequate?
 Do businesses in the vicinity seem to be
thriving?
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Chapter 8
Slide 13
Lesson 8.2
CHOOSE A LOCATION
FOR A NON-RETAIL BUSINESS
GOALS
Examine a location for a
service business.
Select a location for an
industrial business.
Operate your business from
your home.
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Chapter 8
Slide 14
LOCATION FOR
A SERVICE BUSINESS
For some service businesses, location
is as important as it is for a retail
business.
Is location always important?
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LOCATION FOR
AN INDUSTRIAL BUSINESS
Chapter 8
Slide 15
Industrial parks are sections of land
that can be used for industrial business
locations.
Enterprise zones are areas that suffer
from lack of employment opportunities.
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OPERATE YOUR
BUSINESS FROM HOME
Chapter 8
Slide 16
Zoning laws
Office space considerations
Advantages and disadvantages
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Slide 17
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.
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Slide 18
LEASE OR BUY SPACE
Kinds of commercial leases
Gross lease
Net lease
Percentage lease
Compare different locations
Calculating rent per customer
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Slide 19
DESIGN THE LAYOUT
OF YOUR BUSINESS
Your layout must include enough space for:
 Employees
 Customers
 Merchandise
 Equipment
 Restrooms
 Stockrooms
 Storage
 Offices
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Slide 20
CREATE THE FLOOR PLAN
Supplies
and
Inventory
Clothing tables
Clothing
Sample Floor Plan
Clothing
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Clothing racks
Clothing
Window display
Counter
Cash registers
Clothing
Window display
Dressing rooms
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Chapter 8
Slide 21
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
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Slide 22
LAYOUT OF A
SERVICE BUSINESS
Layout is influenced by where services
take place:
 At the business location
 At the customer’s location—on-site
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LAYOUT OF A
WHOLESALE BUSINESS
Chapter 8
Slide 23
 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
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LAYOUT OF A
MANUFACTURING BUSINESS
Chapter 8
Slide 24
 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
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Chapter 8
Slide 25
Lesson 8.4
PURCHASE EQUIPMENT,
SUPPLIES, AND INVENTORY
GOALS
Acquire equipment and
supplies by evaluating
different vendors.
Determine the level of
inventory needed for your
business.
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Chapter 8
Slide 26
OBTAIN EQUIPMENT AND SUPPLIES
Identify suppliers
Evaluate proposals
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STANDARD EQUIPMENT AND SUPPLY
NEEDS FOR MOST BUSINESSES
TYPE
Chapter 8
Slide 27
ITEMS
Furniture
Desks, chairs, bookcases, filing cabinets,
tables, computer stands
Fixtures
Lamps, overhead lights
Office Equipment
Computers, modems, fax machines,
telephones, photocopiers
Office Supplies
Stationery, pens and pencils, scissors, tape,
staplers, paper clips, file folders, calendars
Maintenance Supplies Toilet paper, paper towels, cleaning supplies
Kitchen Supplies
Coffee maker, small refrigerator, coffee, tea
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Chapter 8
Slide 28
PURCHASE INVENTORY
Inventory is the quantity of goods and
materials on hand
Purchase inventory for
Start-up business
Ongoing business
The reorder point is a predetermined level of
inventory when new stock must be purchased.
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