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Small Business Management, 11th edition

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for target. customers. Environmental Conditions. Laws and taxes. Weather. Competition ... Needs That Home-Based Locations May Not Fill. Need to 'Team' ... – PowerPoint PPT presentation

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Title: Small Business Management, 11th edition


1
Chapter 9
Selecting a Location and Planning the Facilities
In the Spotlight AMT Component,
Inc. www.accessmicro.com
  • Small Business Management, 11th edition
  • Longenecker, Moore, and Petty
  • 2000
  • South-Western College Publishing

9-1
2
Learning Objectives Chapter 9
  • 1. Identify the factors affecting choice of a
    business location.
  • 2. Describe the attraction and challenges of a
    home-based business.
  • 3. Explain how efficiency can be achieved in the
    layout of a physical facility.
  • 4. Understand the equipment needs of small firms.
  • Small Business Management, 11th edition
  • Longenecker, Moore, and Petty
  • 2000
  • South-Western College Publishing

9-2
3
Finding an Optimum Location for a Small Business
Customer Accessibility
  • Convenience
  • for target
  • customers

Environmental Conditions
Resource Availability
Site Availability and Costs
  • Laws and taxes
  • Weather
  • Competition
  • Raw materials
  • Transportation
  • Labor supply
  • Incubator or
  • leasing options
  • Small Business Management, 11th edition
  • Longenecker, Moore, and Petty
  • 2000
  • South-Western College Publishing

9-3
4
Leasing vs. Buying
Advantages of Leasing 1. Conserving cash 2.
Minimizing risk
Advantages of Buying 1. Freedom to design or
modify structure 2. Guaranteed location 3.
Hedge against inflation
Lease
  • Small Business Management, 11th edition
  • Longenecker, Moore, and Petty
  • 2000
  • South-Western College Publishing

9-4
5
Needs That Home-Based Locations May Not Fill
  • Small Business Management, 11th edition
  • Longenecker, Moore, and Petty
  • 2000
  • South-Western College Publishing

9-5
6
Building Layout
Factory Layout
Retail Store Layout
Process layout
Product layout
Grid pattern
Free-flow pattern
  • Small Business Management, 11th edition
  • Longenecker, Moore, and Petty
  • 2000
  • South-Western College Publishing

9-6
7
Grid Pattern of Store Layout
Display Racks
Display
Racks
Racks
Display Racks
Door
Check-out
Door
Storage
Office
Restrooms
  • Small Business Management, 11th edition
  • Longenecker, Moore, and Petty
  • 2000
  • South-Western College Publishing

9-7
8
Free-Flow Pattern of Store Layout
  • Small Business Management, 11th edition
  • Longenecker, Moore, and Petty
  • 2000
  • South-Western College Publishing

9-8
9
General-Purpose vs. Special-Purpose Equipment
HANDLE WITH CARE
  • General-PurposeEquipment
  • Low purchase cost
  • Flexible production
  • Good resale value
  • Special-PurposeEquipment
  • Low labor cost
  • High hourly output
  • Small Business Management, 11th edition
  • Longenecker, Moore, and Petty
  • 2000
  • South-Western College Publishing

9-9
10
BizPlanBuilder on Considerations for Site
Selection (p. 94)
  • Room and cost for expansion
  • Land and construction costs
  • Transportation cost and route access for common
    carrier
  • Risks and insurance
  • Packaging and material costs and availability
  • Labor pool availability, skills, costs
  • Local ordinances, licensing and permit
    requirements
  • Government assistance (roads, training,
    exemptions, etc.)
  • Government restrictions and requirements (OSHA,
    NLRB, etc.)
  • Community attitudes toward business and
    manufacturing
  • Continued operating costs (utilities,
    communications, etc.)
  • Small Business Management, 11th edition
  • Longenecker, Moore, and Petty
  • 2000
  • South-Western College Publishing

9-10
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