downtown (city/urban) areas neighborhood shopping centers community shopping centers regional...
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Downtown (City/Urban) Areas
Neighborhood Shopping Centers
Community Shopping Centers
Regional Shopping Centers
Super Regional Shopping Centers
Central Locations near office and professional spaceCrime, traffic, and parking issues make for
reasons against locating here.
Serves a specific neighborhoodUsually houses supermarkets, dry cleaners,
drugstores, etc. For things people need frequently.
Customers are residents of the area.
Serves residents of a wider area & many neighborhoods.Usually have one or two major tenants,
known as ANCHOR STORES. (Department Stores, Discount Stores, Large Supermarkets, Large Drugstores)
Large centers which have several anchor stores, about 40 other stores, and usually in the forms of malls. Rent is high.
Extremely large, housing hundreds of stores. Most tenants in these centers are large
chain stores, as they are the only ones who can afford rent.
Rent is usually least expensive than all other possibilitiesUsually located just outside of shopping
centers or far away from other businesses.
Generally one of the cheapest locations because they don’t need to look nice on the outside.
Your TRADE AREA is the area from which you expect to attract customers.You start with a map of the area you want
to do business in and add: Markers for locations of your competitors Markers for businesses that attract the same
customers as you Markers for possible locations you would want
Buying Space Can provide tax advantages Sometimes the loan payment is just as cheap
as a rental payment Can be expensive up front Locks you in to a location Will have to pay ALL expenses of the Property
Leasing Space No responsibility for property taxes and
expenses Can move more readily Might include maintenance costs, utilities, etc
Gross LeaseTenant pays rent each month and the
landlord covers all property expenses: taxes, insurance and maintenance.
Net LeaseTenant pays rent, taxes, and expenses.
Landlord pays insurance. Percentage Lease
Tenant pays rent plus the landlord gets a percentage of the tenant’s revenue each month.
Divide the amount of rent you’ll have to pay by the number of customers you expect to service a month. That equals your rent per customer.
Sometimes a larger location with higher rent results in a LOWER rent per customer since you will have MORE customer traffic. Then it might be worth the higher rent paid.
You should create a floor plan that includes enough space for employees, customers, merchandise and any equipment.
The goal of your layout is two fold: It should attract customers to your store It should make their experience a pleasant
one so they return.
1. Choose appropriate lighting & window displays
2. Make for an inviting entrance3. Organize the merchandise in a way
that makes sense4. Use all of the space you have wisely
(aisles, walls, displays, registers)
The layout of your service business is JUST as important as a retail business.
When the business is one where customers come to you to receive a service, the layout is critical to make customers feel welcome and for them to return:Restaurants, hair salons, tax prep, etc.
Your business is going to need the specific supplies & equipment to run your type of business
Your business ALSO needs very standard items like furniture, lighting, and office supplies.
VENDORS are the businesses that sell products and services to other businesses.Vendors are also often called Suppliers
When you’re buying from your vendor, always ask for a QUOTE which is an official estimate for how much you will pay for their merchandise or service.
Part of dealing with a vendor will be to establish a REORDER POINT with them. This will prevent you from running out of stock
unexpectedly.
A REORDER POINT is a predetermined level of inventory when new stock needs to be purchased.Work it out with your supplier so they get
your inventory to you on time, based on how quickly they can ship it and it gets to you.
Reorder points also need to have other considerations such as: How many units of the item do you actually sell
a month? How important is it for you to NOT have any of
the stock?