Chapter 6 Location and Distribution - Evaluating Alternatives

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Chapter 6
Location and Distribution - Evaluating Alternatives

This chapter is a perfect time to do some fieldwork and see what locations are working and why.

Learning Objectives

1. Explore channels of distribution.

2. Increase awareness of the role location plays in your Strategic Business Plan.
3. Consider location alternatives.
4. Explore running your business from home.
5. Investigate co-working spaces, enterprise zones and incubators.
6. Understand the importance of the right location for retail bricks-and-mortar success.
7. Use primary and secondary research to refine customer profiles and select a location.
8. Consult commercial real estate brokers in your search for a location.
9. Review major points in leasing agreements.
10. Investigate commercial and manufacturing location issues.
11. Review Internet options.
12. Learn the importance of multichannel distribution.

Action Steps

 Action Step 31: Fantasize your perfect location.

 Action Step 32: Is a home business in your future?
 Action Step 33: Seek professional help for site selection.

Global Village – It Was a Woman’s Raw, Bleeding Hands that Led Jock Brandis to Make a
Promise

Entrepreneur’s Resource – Incubate Your Baby for Success

Passion – Passionate Comedians Seek New Distribution Venues

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 Chapter 6 Location and Distribution - Evaluating Alternatives

Lecture Outline
I. Channels of Distribution
A. Multichannel distribution and promotion
B. Global Village
1. CNN Hero Jock Brandis creates a peanut sheller that changed lives and villages
2. Additional products followed

C. Distribution Channels and Ecommerce Business Models

1. B2B (Business to Business)
2. B2C (Business to Consumer)
3. C2C (Consumer to Consumer)
D. Passion: Passionate Comedians Seek New Distribution Venues
II. Home Office Option
A. Action Step 31: Fantasize Your Perfect Location
B. Action Step 32: Is a Home Business in Your Future?
III. Coworking Space
IV. Incubators
A. Entrepreneur’s Resources
1. Incubate Your Baby for Success
2. Find a Quality Program
3. Check out the Graduation Policy and Staff Qualifications
4. Find the Right Match
V. Bricks-and-Mortar Location for Retail and Service Ventures
VI. Retail Location Filter
1. Target Customers, Neighbor Mix and Competition
2. Security, Safety and Parking
3. Labor Pool and Education
4. Restrictions and Opportunities
5. Services, Costs and Ownership
6. Present and Past Tenants
7. Space and History of the Property

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 Chapter 6 Location and Distribution - Evaluating Alternatives

8. Taxes and Approvals

9. Physical Visibility and Life-Cycle Stage of the Area
10. Community Support and Image
VII. Retail and Service Business Location Information
VIII. Role of Agents and Brokers
A. Anticipate the Unexpected

IX. Before You Sign A Lease

A. How to Rewrite a Lease with your Lawyer’s Assistance
1. Escape Clause
2. Option to Renew
3. Right to Transfer
4. Cost-of-Living Cap
5. Percentage Lease
6. Floating Rent Scale
7. Start-up Buffer
8. Improvements
9. Use Clauses
10. Common Area Maintenance (CAM)
11. Parking and Storage
12. Option to Purchase
13. Option for Expansion
14. Triple or Net NNN Lease
15. Relocation Clause
X. Additional Location Decision for Manufacturers
XI. Alternative Retail Locations
A. Swap Meets and Fairs
B. Kiosks
C. QVC
1. Could be a fantastic option but tough to get on
XII. Internet

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 Chapter 6 Location and Distribution - Evaluating Alternatives

XIII. Summary
A. Channel decisions are among the most challenging ones your will make
B. Explore the opportunities of virtual business

Suggestions for Guest Speakers

 A commercial real estate broker could add a lot to this section

Class Discussion: What is a good location?

Key points could include:

 Traffic
 Signage
 Access
 Compatibility with market

Class Discussion: Is a home office for you?

Key points could include:

 Zoning
 Balance of work and family life
 Image
 Technology

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