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LOCATE AND SET UP YOUR BUSINESS

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. Lesson 8.3 OBTAIN SPACE AND DESIGN THE PHYSICAL LAYOUT.

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LOCATE AND SET UP YOUR BUSINESS

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  1. 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

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

  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. 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. 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. 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. 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)

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

  12. 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. 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. 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. 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

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