Site Selection and Layout Planning

Name: ______Date:______

CH 9 OUTLINE

Site Selection and Layout Planning

9.1 Objectives

•  List the factors involved in deciding on a community in which to locate a business.

•  Identify the factors to consider when selecting a business site.

•  Describe the resources that can be used in finding potential business sites.

•  Explain the steps involved in analyzing potential sites for a business and choosing between those sites.

•  Describe the advantages of starting a business at home or in an incubator.

1.  FACTORS IN COMMUNITY SELECTION

·  As an entrepreneur, the decision of ______your new business is an important one.

·  A location can determine ______and ______

______.

Factors to consider when selecting a community include:

A.  economic base

B.  financial incentives

C.  population makeup

D.  labor supply

A.  IS THE ECONOMIC BASE FAVORABLE?

•  ECONOMIC BASE ______

•  First, you should ______

▫  That base can be either ______or ______

•  What is ______in a community?

•  Is it ______or some other source of income?

•  Is this ______?

B.  ARE THERE FINANCIAL INCENTIVES?

•  ______ a ______that helps businesses, including ______

▫  A community may ______to locate there by offering a ______.

▫  Incentives include: ______.

C.  WHAT IS THE MAKEUP OF THE POPULATION?

·  ______such as ______or ______can ______businesses.

·  These trends determine ______, ______they will spend, and ______or services they’ll ______.

Demographics and population size can tell you if a location matches your target market.

D.  DOES THE LABOR SUPPLY MATCH YOUR NEEDS?

When considering a community, consider your labor needs and how well the local labor pool meets those needs.

Business owners need to consider:

·  how ______

·  If the ______

·  if the ______

2.  CRITERIA FOR SITE SELECTION

Once you ______, you can begin looking at sites.

The factors to consider and the criteria used to judge sites vary with the type of business activity

A.  RETAIL BUSINESS CONSIDERATIONS

•  Retail businesses need to determine their ______ in order to be ______.

•  trade area the ______from which a business ______

•  Once you pinpoint a community you want to serve and determine your business’s trade area, examine these issues:

a.  number and size of competing businesses

b.  nature of the competition

c.  character of the area

d.  accessibility and traffic

B.  SERVICE/WHOLESALE BUSINESS CONSIDERATIONS

Service and wholesale businesses have ______to those of ______businesses.

However, many service and wholesale businesses ______to their ______and ______, high-profile locations.

C.  MANUFACTURING/EXTRACTION BUSINESS CONSIDERATIONS

•  Manufacturing/extraction businesses need to be ______of ______and ______and are subject to local ______.

D.  INDUSTRIAL PARK an ______in a community for ______use

•  Usually ______.

E.  E-BUSINESS CONSIDERATIONS

·  ______and ______are ______for an e-business because electronic business sites can be located almost anywhere and require little space.

However, larger operations need more space for equipment, personnel, and shipping.

F.  LOCATING POTENTIAL SITES

There are a number of ways to locate potential business sites:

·  Read the ______of ______.

·  Consult with ______who specialize in ______.

·  Conduct ______by ______through ______communities.

·  Network with personal or business contacts.

3.  SITE ANALYSIS AND DECISION MAKING

Once an entrepreneur identifies possible sites for a business, he or she must consider three things before making a decision:

A.  the ______

B.  the ______

C.  the ______

1.  SURROUNDING AREA ANALYSIS

Surrounding areas should be evaluated by the same criteria used for site selection:

·  ______of competing businesses

·  ______of the ______

·  ______of the ______

·  ______and ______

2.  BUILDING EVALUATION

The building must be ______to take care of present needs and to ______for ______

Check the building’s interior to see how it meets your needs and the exterior’s construction, soundness, appearance, and parking.

3.  LEASE, BUY, OR BUILD?

Most experts say that leasing is best for a beginning business.

Ø  Leasing ______

Ø  Leasing has the ______

Ø  Leasing costs are ______

Ø  However, ______or ______is ______for a ______investment

4.  MAKING YOUR DECISION

For each of the possible sites, compare these variables:

·  ______

·  ______and ______

·  ______

5.  ALTERNATIVE SITES

•  Two sites that do not fit the traditional mold are the home-based business and the incubator.

•  ______an enterprise that is set up to provide ______, ______, ______, ______, ______, and ______for new businesses

9.2 OBJECTIVES

•  List the steps in layout planning that are common to all businesses.

•  Describe the layout needs for each type of business.

•  Discuss the final details of layout planning.

1.  LAYOUT PLANNING

•  A well-planned ______ can mean a more ______, a more ______, and ______.

•  LAYOUT ______that shows the ______and

______arrangement of a business, including such items as ______, ______, ______, ______, and parking spaces

A.  PHYSICAL LAYOUT
Six Steps in Layout Planning

B.  LAYOUT NEEDS AND POSSIBILITIES

Although the steps in layout planning are the same for all businesses, the options and considerations are not.

Different types of businesses have different operational needs.

1.  MANUFACTURING BUSINESSES

Types of Manufacturing Layouts

In a product layout, all machines and supporting activities are arranged along ______

______.

As products come down the line, something is done to them at each workstation.

•  WORKSTATION an area in a business with equipment for a single worker

2.  RETAIL BUSINESSES

3.  WHOLESALE BUSINESSES

•  When planning the layout of a wholesale business, ______and ______are the ______.

•  When planning for storage, follow these guidelines:

·  Store ______.

·  Store items ______that were ______and will be ______.

·  Provide a ______.

·  ______space on the basis of ______.

4.  SERVICE BUSINESSES

§  The physical layout of a service business depends largely on the specific service it provides.

§  There is ______of guidelines or patterns for these enterprises.

5.  EXTRACTION BUSINESSES

·  Like service businesses, extraction firms have ______.

·  They share a few common features: an ______, ______for ______, and the ______itself.

6.  E-BUSINESSES

·  The layout of an e-business ______

·  If the e-business ______, ______and ______areas are needed.

o  The Internet has developed into an enormous consumer network with many e-commerce sites.

o  A successful e-commerce site incorporates good content and design, offers credit card processing, and has a security certificate.

·  The Components of
an Effective E-Commerce Site

·  ______ software that ______information so that it does not have to be manually typed in

·  ______: a process that ______from buyer to seller

·  ______: a credential issued by a ______that ______that all transactions made on a ______are ______

·  ______: the information and features on a Web site that gives ______

C.  FINISHING TOUCHES

Once a business owner chooses a particular layout, he or she can ______the ______.

Such details include ______, as well as ______or improvements to the ______.

•  FACADE ______

•  Planning for Office Space

•  You have two options to consider when planning office space:

•  ______: best if ______, ______, ______

______, or ______and ______are important

•  ______: if ______and ______are of primary concern

•  Planning for Office Space

•  You can define the traffic patterns of an office space with ______.

•  ______the furniture, equipment, and accessories contained in a building