Entrepreneurship Chapter 8
enterprise zones
Areas that suffer from lack of employment opportunities
industrial parks
Sections of land that can be used for industrial business locations
tenant
Person who pays rent to occupy space owned by someone else
layout of retail business
1. appropriate lighting, 2. window displays, 3. inviting entrance, 4. common sense for organizing merchandise, 5. 4 feet of isle space, 6. wall space wisely, 7. place cash registers in a central location
location possibilities
1. downtown, 2. neighborhood shopping centers, 3. community shopping centers, 4. regional shopping centers, 5. super regional shopping centers, 6. stand alone stores, and 7. warehouses
your layout must include space for
1. employees, 2. customers, 3. merchandise, 4. equipment, 5. restrooms, 6. stockrooms, 7. storage, and 8. offices
disadvantages of operating a business from your home
1. interruptions from family and friends, 2. miss coworker interactions, 3. spend too much time because its at home
layout of wholesale business
1. locate in a one story, 2. keep merchandise close to the shipping dock, 3. store popular items in accessible locations, 4. areas that accommodate merchandise of all sizes, 5. walkways free of merchandise, 6. store items safely
advantages of operating a business from your home
1. reduce or eliminate rent, utility, insurance, and maintenance costs, 2. some expenses may be subtracted from income taxes, and 3. commuting time/expenses are eliminated
locate vendors through
1. telephone directory advertising section 2. trade magazines 3. trade associations 4. the internet 5. other companies in your industry 6. SBA and SCORE
layout of manufacturing
1. work teams should be situated close together 2. supervisors should be able to supervise 3. exits clear and easy to find 4. hazardous materials should be stored safely 5. equipment should be in a place that reduces the chance of an accident
questions to ask
1.is it safe, 2.attractive, 3.will it attract the kind of customers your business will be targeting, 4.is it easy to reach, 5.is parking adequate, 6. and do businesses near it seem to be thriving
downtown disadvantages
1.parking, 2. distance from suburbs, 3.crime, 4.lack of evening shoppers
reorder points
A predetermined level of inventory when new stock must be purchased
vendors
Companies that sell products and services to businesses
landlord
Person who owns and rents out buildings or
regional shopping center advantages
anchor stores bring in customers, moderate rent
community shopping center advantagaes
anchor strobes bring in customers and low rent
neighborhood shopping center disadvatnages
attracts only customers who live in the area
buying a space
can't afford to and don't want to be locked into a location
downtown advantages
central and likely to attract business shoppers
community shopping center disadvantages
distance is too great when convenience in important
regional shopping center disadvantages
distance is too great when convenience is important
super regional shopping advantages
huge number of customers, services a large area
service businesses
if the service requires customers coming in, then closeness to the customer is essential
net lease
landlord pays building insurance; the tenant pays rent, taxes, and other expenses
warehouse advantages
low rent, charges lower prices than compeition
stand alone store disadvantages
no anchor store to attract customers, extra expenses of advertising
stand alone store advantages
rent can be lower, no competition next door
neighborhood shopping center advantages
supermarkets and other businesses bring in customers
percentage lease
tenant pays rent each month, plus the landlord receives a percentage of the tenant's revenue each month
gross lease
tenants pay rent each month, the landlord covers all property expenses and taxes, insurance on building, and maintenance
trade area
the area from which you expect to attract customers
inventory
the quantity of goods and materials on hand
super regional shopping disadvantgaes
very high rent, lots of competition, distance is to great when convenience is important
