Location decisions Mainly for start up businesses!

Location decisions

Mainly for start up businesses!

Aims…

• Further detail to factors that influence a businesses’ decision to locate

• Reinforce key factors…

Using your post-it notesBy yourself…

Write down a key theory/concept that you can remember from last lesson…

Share these with a partner…

What do you agree on?What’s different?

Share these another pair…

What do you agree on?What’s different?

Video clip

• Working lunch series 15 : 8 location _ hairdresser

• When you watch this ….. Think about…

• What were the key factors that influenced the entrepreneur’s choice of location?

When choosing a location for your business, there are a number of important factors to consider:

• Will the location be accessible to your potential clients? Is there parking nearby?

• Is there a significant amount of foot traffic passing by your business?

• Are you near a Metro station, bus stop or major intersection?

When choosing a location for your business, there are a number of important factors to consider:

• Is the space zoned for your type of business (i.e., industrial, residential, commercial or mixed-use)?

• Will you have loading bays? Elevators?These are both in Dorking!

When choosing a location for your business, there are a number of important factors to consider:

• Is the price right?

• What other amenities are included?

• Will you have to build to suit or will the landlord outfit the space or provide funds for tenant improvements?

When choosing a location for your business, there are a number of important factors to consider:

• Do you want to operate your business from home?

• If so, will the savings associated with running a home-based business allow you more money for your business?

• Will you be able to reach your clients and customers?

• Will you be able to run your type of business from home?

Can you think of any benefits and

problems of running a

business from home?

Working from home

• Read article & answer 3 questions at the end.

1. Define what is meant by a “start-up”.

2. Identify three different cost savings that a home-based business can enjoy compared with an office-based business.

3. Outline the main factors that would determine when a home based business might need to move out to larger premises.

Exam style questions….

Questions…. Use your whiteboard….???

• List 3 types of businesses where it is essential to be based close to the customer.

Questions…. Use your whiteboard….???

• List 3 types of businesses where it is essential to be based close to their resources.

Questions…. Use your whiteboard….???

• List 3 types of businesses where location is not an important consideration!

Questions…. Use your whiteboard….???

• Why might a business want to locate near to its competitors?

A r

ow

of

rest

au

ran

ts

An evaluation style question…

• Discuss the main consequences of getting the wrong location when starting up a business. (15 marks)

• What issues would you use in this essay question?

• Think back to the hotel HWK…

Your task

Worksheet

Wladek’s gym.

The figures….

The Questions for class discussion….

• Q1 – show calculations to prove least cost site!• Q2 - Technology – look at the 2nd row in the table!

The Questions requiring written answers….

• Q5 – you need to calculate the total cost for both locations and the total revenue for the projected membership numbers.

• What are the profit potential if the gym’s reached full capacity?

The Questions requiring written answers….

• Q7 – you need to look at the strengths and weaknesses of each location. Include both qualitative and quantitative factors.

• You need to then justify which location you would advise Wladek to choose!

Your task

Worksheet

Wladek’s gym.

Complete Q’s 5 – 7 for Homework