The Location Plan

Part 3 Developing the New Venture Business Plan

PowerPoint Presentation by Charlie Cook The University of West Alabama
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Location Options for the Startup

Exhibit 9.1
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Five Key Factors in Determining a Good Business Location

Exhibit 9.2
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Equipping the Physical Facilities

Manufacturing Equipment
General purpose equipment
Machines that serve many functions in the production system

Special-purpose equipment
Machines designed to serve specialized functions in the production process
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Manufacturing Equipment

General-Purpose Equipment Low purchase cost

Special-Purpose Equipment Low labor cost

Flexible production
Good resale value

High hourly output

Limited resale value

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Locating the Startup in the Entrepreneurs Home

Home-Based Business
A business that maintains its primary facility in the residence of its owner

Attraction of a Home-Base Business

Low start-up and overhead costs Convenience for family and lifestyle Technology
Advances in office equipment allow home-based business to compete with commercial sites.

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Home-Based Businesses
Challenges
Business image of a home-based business
Professional image is difficult to maintain in a home environment.

Family and business conflicts

There is a need to observe regular business hours and establish spatial boundaries (specific work areas) to avoid distractions.

Legal considerations
Local laws and zoning ordinances prohibit many types of home-based businesses.

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Locating the Startup on the Internet

E-Commerce
The paperless exchange of business information via the Internet

Internet
A huge, loosely connected computer network that links smaller networks all over the world

World Wide Web (WWW)

A system of Internet servers accessible with browsers, which navigate via hypertext links

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Benefits of E-Commerce to Small Firms

Provides the opportunity to compete with larger firms in larger markets

Helps with cash flow problems by compressing the sales cycle

Builds better customer relationships through better service
Electronic Customer Relationship Marketing (eCRM)
An electronically based system that emphasizes customer relationships

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E-Commerce Business Models

Exhibit 9.4
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