1 Manage Small Business

Small venture Business Small venture Business ubash ubash

Manage small BusinessManage small Business

Location and physical layoutLocation and physical layoutPlan and control productionPlan and control productionStaff recruitment Staff recruitment Merchandising Merchandising Marketing strategy Marketing strategy


Introduction Introduction Small business venture• Who are you?• What do you want?• What will it be like?• Why will you fail?• How big?• What are your skills?• Define your business!


Business plan Business plan

Objectives 1. How many plans?2. Who should do the plan?3. What should be in the plan?


Contents of business planContents of business plan

1. Summary (highlight attractions) what is business, market, potential, profit figures, money, prospects?

2. The past (when started, past performance, future progress)

3. Management (crucial section)4. Marketing (crucial section)

5. Operational details (base, location, premise, supplier, prodn facility, equip)

One or two pages

One page + appendixAs many3-4 + appendixDepends on nature of business


6. Product / service (why unique? competition, patents, copyright)

7. Financial (forecasts, monthly profit/loss, cash flow, balance sheet, audits, figures)

8. Prospects (objectives, short – long term, cash needed, shareholdings, investors, stocks)

2page + appendix

3pages + figures.

1- 2 pages


Select a Community Select a Community

1. Central shopping centre• Draws customers from entire trading

area.• Usually has high operating costs, high

rentals• Is usually an area of keen competition.• Has mostly larger stores.• Parking is usually crowded.


2. Neighborhoods / suburban shopping• Draws customers from local trading.• Usually has low op. cost, low rentals• Features personalized service • Usually small stores.• Usually has plenty of parking.


3. Pavement side location • Usually has lower operating cost• Low rentals• Merchandise is of mixed nature• Extensive parking space• Customers are generally passing by • Features long hours & personal service.


Economic considerationsEconomic considerationsINDUSTRY Farming / manufacturing/ trading

TREND High satisfaction/ growing/ stationary/ declining

PERMANENTOld & well established/ old & reviving/ new & promising/ recent & uncertain

DIVERSIFYMany / variety / many of same type/ dependent on industry

SEASONAL Little or no change/ mild / highly changing

FUTURE Promising/ uncertain/ poor outlook

STABILITY Constant/ average/ fluctuation


Population & Competition considerationPopulation & Competition considerationINCOME Wealthy/ well distributed/ middle/poor

TRENDGrowing/ large, small & stable/ declining

LIVING STATUS Own home/ pay bug rent/moderate rent/ low rent

NOS. STORESFew/ average/ Many / too many

PRESENCE OF CHAIN STORESNo chains / few / average / many well established.

TYPES OF COMPETING STORESUnattractive / average/ old and well established / outside the community

TYPE OF MANAGEMENT Progressive/ avg/ alert/


Select Physical location Select Physical location • Site history • Compatible neighbours • Convenience• Business climate• Aesthetic climate • Local custom • Cost


Examples of Floor Space Examples of Floor Space in square metresin square metres

Bakery Coffee shopFurniture Hairdresser menHairdresser women Pet shop Shoe repair

140140800

2080

8010


A clear site surveyA clear site surveyTRAFFIC FLOW Age and Sex of pedestrians/ destinations/nos./ vehicle traffic count/ peak hour traffic flow

TRANSPORTATION Bus/ taxi/ railway/ transfer points/ roadway entrance & exit

OVERALL SUITABILITY OF FACILITIES Frontage / depth / shape / condition / cost

PARKING Large/convenient/good but small/inadequate


BUILDING EXTERIOR Face of bldg (type of cladding,condition,finish, colour), electric signs/ front entrance doors/ back door/ steps / footpath/ parking / rubbish bin/ display windows, glass, lighting, ventilation.

BUILDING INTERIOR Floors / carpets/ material/ colour/obstacles/ piping/ sewage/gas/toilets/ pantry/ shelves/counters/glass showcase/heating/ ventilation/burglar alarm/ smoke detector/ air conditioning


AGREEMENT TO LEASEAGREEMENT TO LEASERental payments • a base rent, usually calculated on a cost per square

metre basis• A base rent with annual escalation rate based on

changes in the consumer price index• Base rent plus a percentage of gross sales.• Total rent as a percentage gross sales.

Term of lease Permitted uses Assignment of lease


Leasing Leasing • Another way to finance without making a down payment.• Leasing firm buys the equip and gives it for regular lease

payments. • Very flexible, lots of benefits in cash flow and tax. Financial lease • An alternative to hire purchase. • Long term contractOperating lease • Short term. Like for a car• Car is regs, insured & maintained by rental company.


Fleet leasing • If your business has 5/more vehicles• Services included are sourcing,

maintenance, management and disposal. • One fixed monthly rental payment is made

for the entire fleet.


Interior display Interior display

• Easily noticeable or frustrating • Display of merchandise • Competitive strength • Three key factors are fixtures / colour / lighting

FIXTURES • Display space is most valuable selling assets.• Its use should tally with sales and profits.• Favorable positioning


COLOUR • Creates a buying mood.• Should blend with the shop style and product.• Motivates customers to buy fashionable goods.• High priced merchandise – blue, green, black.• Warm colours can make objects look closer.• Light colour adds depth to a small space.• Dark colour to make larger space look smaller.


Lighting Lighting • Use large area lighting fixtures and glowing

down lighting to avoid shadows when displaying large objects.

• Use general diffuse lighting, accented with point type spotlights, to emphasize particular merchandise.

• Use concentrated beams of light. • Use low intensity overhead lighting, patterns,

textures.


Other provisions Other provisions • Compulsory membership in a tenants association • Parking provisions• Common areas in a shopping centre• Sharing of expenses with landlord or other tenants• General conduct of the business• Storage of goods• Disposal of waste• Receiving and delivering of goods• Repair and repainting of premises• Compliance with various laws and regulations• Insurance • Default conditions and remedies available

Documents

1 Manage Small Business