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Similar to Apparel 2 chap 08 (20)
Apparel 2 chap 08
- 1. Chapter 8
Locate and Set Up Your
Business
8.1 Choose a Location
8.2 Obtain Space and Design the
Physical Layout
8.3 Purchase Equipment, Supplies,
and Inventory
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 2. Lesson 8.1
Choose a Location
Goals
Identify options for locating a retail business.
Discuss factors to consider when choosing a
location for a nonretail business.
Identify the benefits of locating a business
online.
Describe steps to take in selecting a site.
Chapter 8
Slide 2
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 3. Vocabulary
Chapter 8
Slide 3
industrial park
enterprise zones
e-commerce
trade area
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 4. Locating a Retail Business
The right location for your business
depends on:
the kind of business you plan to operate
the type of customer you want to reach
Also consider whether you will have
inside sales
outside sales
Chapter 8
Slide 4
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 5. Downtown Areas
Positive features of a downtown
location include:
easy accessibility
convenient access for downtown workers
Chapter 8
Slide 5
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 6. Negative features of a downtown
location include:
higher crime rate
traffic jams
a lack of
free or convenient parking
customers in the evening
Chapter 8
Slide 6
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 7. Neighborhood Shopping
Centers
consist of 3 to 15 stores
good for stores selling goods or
services that people need to purchase
frequently
rent is usually low
convenient for local shoppers
Chapter 8
Slide 7
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 8. Community Shopping Centers
larger than neighborhood centers
serve residents from many
neighborhoods
large anchor stores can increase
customer traffic
Chapter 8
Slide 8
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 9. Regional Shopping Centers
designed to attract customers from an
entire region
have 40 to 100 stores
anchored by two or more large
department stores
focus on apparel
rents are high
Chapter 8
Slide 9
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 10. Super-Regional Shopping
Centers
largest classification of shopping centers
more than 100 stores
anchored by three or more department
stores
very high rents
not recommended for new businesses
Chapter 8
Slide 10
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 11. Stand-Alone Stores
may be located just outside of shopping
centers or far from other businesses
depend on drive-by traffic
less expensive rent
advertising is often necessary
Chapter 8
Slide 11
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 12. Warehouses
among the cheapest rent
few frills
often charge customers lower prices
heavy advertising required
Chapter 8
Slide 12
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 13. What are the main options for locating
a retail business?
Chapter 1
Slide 13
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 14. Starting a Virtual or Online
Business
e-commerce
buying and selling products or services
over the Internet
Chapter 1
Slide 14
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 15. Benefits of Virtual or Online
Businesses
an immediate presence
business costs are less
a global customer base is possible
time restrictions are not a problem
can electronically manage information
about customer behavior
Chapter 1
Slide 15
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 16. Virtual or Online Business
Precautions
Buy your own domain (web address).
Use a creative website design that
appeals to customers.
Be sure your website has a fast loading
speed.
Keep your website current.
Chapter 1
Slide 16
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 17. What are some benefits of having a
virtual or online business?
Chapter 1
Slide 17
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 18. Selecting Your Site
trade area
the area from which you expect to attract
customers
identify the location of
competitors
businesses that would attract a similar
customer base but that would not compete
directly with you
Chapter 8
Slide 18
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 19. Location Type and Availability
Determine which type of location is best
for your business.
Determine what spaces of this type are
available in your trade area.
Chapter 8
Slide 19
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 20. Evaluate the Location
Factors to consider when picking a
location include:
safety
attractiveness
Does the location attract your target
market?
Is parking adequate?
Are surrounding businesses thriving?
Chapter 8
Slide 20
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 21. What are some of the factors you
should consider when selecting a site
for your business?
Chapter 1
Slide 21
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 22. Lesson 8.2
Obtain Space and Design the
Physical Layout
Goals
Compare purchase and lease options.
Describe layout considerations for
different types of businesses.
Chapter 8
Slide 22
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 24. Lease or Buy Space
Buying advantages include:
You can receive a tax deduction on the
loan interest for the building.
The loan payment may be no larger than a
lease payment.
Chapter 8
Slide 24
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 25. Disadvantages of buying include:
Most entrepreneurs lack the money to
purchase property for their business.
You are locked into a specific location.
You are responsible for building
maintenance costs.
Chapter 8
Slide 25
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 26. Commercial Leases
tenant
the person who pays rent to occupy the
space owned by someone else
landlord
the person who owns and rents out the
building or space
Chapter 8
Slide 26
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 27. There are three types of commercial
leases.
gross lease
tenant pays monthly rent
landlord pays property expenses
net lease
landlord pays building insurance
tenant pays rent, taxes, and other expenses
Chapter 8
Slide 27
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 28. percentage lease
the tenant pays a base monthly rent
the tenant also pays a percentage of monthly
revenue as rent
most common for prime retail locations
Chapter 8
Slide 28
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 29. You should always consult with an
attorney before signing a commercial
lease.
Chapter 8
Slide 29
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 30. Compare Costs of Doing
Business
When deciding where to locate your
business you should calculate how
much rent you will pay per customer.
Rent per customer =
Rent per month ÷ customers per
month
Chapter 8
Slide 30
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 31. Chapter 8
Slide 31
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 32. Name three kinds of commercial
leases.
Chapter 1
Slide 32
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 33. Design the Layout of Your
Business
Your layout needs to include space for:
Chapter 8
Slide 33
employees
customers
merchandise
equipment
restrooms
stockroom/storage
offices
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 34. Create the Floor Plan
Chapter 8
Slide 34
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 35. Layout of a Retail Business
visual merchandising
the process of combining products,
environments, and spaces into an
appealing display to encourage the sale of
products or services
Chapter 8
Slide 35
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 36. The goal of your layout should be
twofold:
It should attract customers to your store
and keep them coming back.
It should meet the needs of your
business.
Chapter 1
Slide 36
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 37. Exits should be clearly marked and easily
accessible.
Hazardous materials should be safely
stored.
Equipment and machinery should be
positioned in a way that minimizes the
potential for accidents.
Chapter 8
Slide 37
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 38. What are the major considerations for
choosing a layout for a business?
Chapter 1
Slide 38
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 39. Lesson 8.3
Purchase Equipment,
Supplies, and Inventory
Goals
Explain how to find and choose
vendors for your business.
List factors that determine the needed
level of inventory.
Chapter 8
Slide 39
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 41. Obtain Equipment and
Supplies
inventory
the products and the materials needed to
make the products that a business sells to
its customers
When starting a business, order the
minimum quantity you need right now.
Chapter 8
Slide 41
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 42. Chapter 8
Slide 42
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 43. Identify Suppliers
vendors
companies that sell products and services
to businesses
Chapter 8
Slide 43
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 44. Evaluate Proposals
quote
an estimate for how much you will pay for the
merchandise or service
Other information to seek when obtaining
quotes includes:
Chapter 8
Slide 44
quality of merchandise
financing terms
quantity discounts
shipping and handling charges
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 45. What should you consider when
selecting vendors for your business?
Chapter 1
Slide 45
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 46. Purchase Inventory
For retailing and wholesaling:
Inventory is a finished product purchased
with the intent of reselling it to customers.
For manufacturing:
Inventory includes:
raw materials
finished goods
Chapter 8
Slide 46
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 47. Purchase Inventory for a
Startup Business
As it is difficult to forecast actual sales,
a startup business should order just
enough stock to fill its shelves.
Chapter 8
Slide 47
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 48. Purchase Inventory for an
Ongoing Business
reorder point
a predetermined level of inventory that signals
when new stock should be ordered
Factors to consider when setting a reorder
point include:
how long it takes suppliers to get merchandise to
you
monthly sales of the item
how important it is for you not to be out of stock
Chapter 8
Slide 48
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 49. How do you determine the amount of
inventory to keep in stock?
Chapter 1
Slide 49
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.