March 28, 2011

Objective: Students will identify the important characteristics of selecting

a business location

Homework

• Please turn in assignment 7.2 at this time– If you have any late work completed you may turn

it in at the same time.

Upcoming Schedule

• Today: 7.3 = Business Location• Wednesday: 7.3 Activity & 7.4 Home Deduction• Friday: All Period Library (you will have the full 90

minutes to complete your Module 7 Major assignment)

• Tuesday: You will present your Module 7 Major assignment IN CLASS, Heather Nelson will be here to observe the presentations as well. – You will not have another opportunity to complete

this assignment so you NEED to have it completed before class on Tuesday.

Select a Successful Entrepreneur

• For assignment 7MA each student will select a successful Entrepreneur (past or present) and create a Power Point presentation for that person.

• One entrepreneur per person (the sooner you let me know who your entrepreneur the more likely you are to get your selection)

• On Wednesday in class you will tell me who is your successful Entrepreneur… you have not selected a Successful Entrepreneur I will assign on for you.

Business Location

• It’s all about location! • The first thing to consider is whether the location

you choose is right for your type of business. What has your study of demographics and your market identification show you?

• Base your decision on the type of products and services you provide and your target market rather than on your personal convenience

Market Evaluation

• Where does your target market live, shop, work?

• Is there easy access, good traffic flow, and adequate parking?

Competition

• Do you want to be located near or far from your competition? Think about your answer and why… we will then go around the room and share.

• Many businesses try to distance themselves from their competition, but some businesses cluster near their competition, this is going to vary based on your individual business needs.

Sources of Supply

• Do you need to be located close to a supplier?• If certain raw materials are crucial to your

business you may need to locate close to your supplier to reduce freight costs and delivery times.

Labor Force

• Are you going to be able to find enough qualified employees?

• Some areas do not have an adequate group of people to form a labor pool.

• You may be able to pay a lower wage rate in a different area.

Cost

• Should you pick the place with the cheapest rent? Why or why not?

• If there has been a frequent history of business failures it may be a “bad location”

• Take a walk around the area, does the location project the image you have for your business.

• Before looking for a location, outline your requirements both for current and future needs.

Information to Gather

Assignment 7.3

• Summarize 3-5 variables in a short 150 word essay that a business owner needs to take into consider when selecting (evaluating) the physical location to operate the business. Then, list examples of types of information you would want to gather to complete a location analysis?