Site Selection & Layout Site Selection & Layout PlanningPlanning

Community & Site Selection

Factors in Community Selection

Location Location Location Make or Break Decision

May Be Permanent Customer Access Who sees Your Business

Community & Site Selection

4 Key Questions Is the Economic Base

Favorable? Economic base: major

industries that provide jobs

Primarily industrial or primarily service oriented

Growing or declining?

Community & Site Selection

4 Key Questions Are there financial incentives?

Incentive: reward or advantage that helps business

Lower taxes, cheaper land, employee training programs

State may establish a enterprise zones in selected towns (give business tax favored status)

Community & Site Selection

4 Key Questions What is the Makeup of the

Community? Is the population aging as

young people move away or young families moving in?

Determines who will spend, how much, and on what items

Census tract: small geographic area into which a state or county is divided for the purpose of gathering and reporting census data (sample on page 180)

Community & Site Selection

4 Key Questions Does the Labor Supply

Match Your Needs? How many employees

do I need? Is there sufficient labor

to meet my needs? Does the local

population have the appropriate skills for my business?

Community & Site Selection

Criteria for Site Selection Retail Business

Considerations Number & size of

competing businesses: how many, how big

Nature of competition: similar, major differences

Character of area: attractive, inviting

Accessibility & traffic: convenient, easy to find, easy to enter/exit, volume of cars or foot traffic

Community & Site Selection

Criteria for Site Selection Service/Wholesale Businesses Considerations

Hair salon, dry cleaners, etc. type of service businesses similar to retailers

Service businesses, distributors, and wholesalers with little or no customers contact: low visibility locations

Go to client to perform service Use sales reps to visit customers

Community & Site Selection

Criteria for Site Selection Manufacturing/Extracting Business

Considerations Location based on nature of business Extraction business: located near resources Manufacturing business: location based on zoning

law, usually an industrial park Must have easy access to transportation and

highways

Community & Site Selection

Criteria for Site Selection E-Business Considerations

Unique businesses, locate anywhere

Traffic not a consideration, traffic generated by internet

Factors: size of the business

Shipping: UPS, FedEx, Post Office

Locating Potential Sites

Classified Section of Newspaper

Realtors who specialize in business properties

Personal Search Networking with

business community Internet Search

Site Analysis & Decision Making

Surrounding Area Analysis

1. characteristics & traits of the area specific to the site

Building Evaluation1. physical condition

of the interior and exterior of the site

Site Analysis & Decision Making

Lease, Buy, or Build? Advantages of leasing outweigh

other options in most instances1. Large cash outlay avoided2. Risk is reduced3. Lease expenses are tax deductible

Terms of the Lease1. Monthly rent, length, provisions for

termination, insuring risks, remodeling costs, repairs

Attorney review of contract

* buying/building costs higher

Site Analysis & Decision Making

Making Your Decision Examine & Compare

Variables for each site1. Cost Comparison: cash

outlay, monthly expenses2. Advantages/Disadvantages3. Desirability: intangibles

(atmosphere, character, convenience, personal preferences)

Layout PlanningLayout Planning

Physical LayoutPhysical Layout Well planned layoutWell planned layout

Efficient operationEfficient operation Appealing sales floorAppealing sales floor Customer convenienceCustomer convenience

Layout: floor plan that shows the Layout: floor plan that shows the arrangement of a businessarrangement of a business Intended use of spaceIntended use of space Interior & exterior layout create imageInterior & exterior layout create image Must comply with zoning, building, and Must comply with zoning, building, and

safety standards including access for people safety standards including access for people with disabilitieswith disabilities

Layout PlanningLayout Planning Basic Steps In Layout PlanningBasic Steps In Layout Planning

Define the objective of the facilityDefine the objective of the facility Identify the primary and supporting Identify the primary and supporting

activities that will take place in the facilityactivities that will take place in the facility Determine the interrelationships-access, Determine the interrelationships-access,

arrangement, and flow-between activitiesarrangement, and flow-between activities Determine space requirements for all Determine space requirements for all

activitiesactivities Design alternative layouts for the facilityDesign alternative layouts for the facility Evaluate various layouts and choose oneEvaluate various layouts and choose one

Layout PlanningLayout Planning

Layout Needs & PossibilitiesLayout Needs & Possibilities Layout options and considerations Layout options and considerations

differ for business typesdiffer for business types ManufacturingManufacturing RetailRetail WholesalerWholesaler ServiceService ExtractionExtraction E-BusinessE-Business

Layout PlanningLayout Planning

Finishing TouchesFinishing Touches Facade: exterior of buildingFacade: exterior of building Interior StorageInterior Storage Office SpaceOffice Space

1.1. Open Office: based on cost, space, Open Office: based on cost, space, supervision, access to files, equipment etcsupervision, access to files, equipment etc

2.2. Closed Office: based on need for privacy Closed Office: based on need for privacy and noise reductionand noise reduction

3.3. Appointments: furniture, equipment, Appointments: furniture, equipment, accessoriesaccessories

Layout PlanningLayout Planning

Finishing TouchesFinishing Touches Charting Equipment, Furnishings, & Charting Equipment, Furnishings, &

SuppliesSupplies1.1. Placement of components based on Placement of components based on

operational needsoperational needs Detailing Interior & ExteriorDetailing Interior & Exterior

1.1. Interior: creates atmosphere: lighten, Interior: creates atmosphere: lighten, wall and floor coverings, decorative wall and floor coverings, decorative accessoriesaccessories

2.2. Exterior: entry, signage, facadeExterior: entry, signage, facade