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PowerPoint Presentation by Charlie Cook

The University of West Alabama

Copyright 2006 Thomson Business & Professional Publishing.

All rights reserved.

Part 3 Developing the New

Venture Business Plan

The Location Plan

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Location Options for the Startup

Exhibit 9.1

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Copyright 2006 Thomson Business & Professional Publishing. All rights reserved. 95Exhibit 9.2

Five Key Factors in Determining

a Good Business Location

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Copyright 2006 Thomson Business & Professional Publishing. All rights reserved. 911

Equipping the Physical Facilities

Manufacturing EquipmentGeneral purpose equipment

Machines that serve manyfunctions in the production

system

Special-purpose equipmentMachines designed to serve

specialized functions inthe production process

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Manufacturing Equipment

Special-Purpose

Equipment

Low labor cost

High hourly output

Limited resale value

General-Purpose

Equipment

Low purchase cost

Flexible production

Good 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

TechnologyAdvances in office equipment allow

home-based business to competewith commercial sites.

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Home-Based Businesses

ChallengesBusiness image of a home-based business

Professional image is difficult to maintain in a homeenvironment.

Family and business conflicts There is a need to observe regular business hours and

establish spatial boundaries (specific work areas) to avoiddistractions.

Legal considerations

Local laws and zoning ordinances prohibit many types ofhome-based businesses.

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Locating the Startup on the Internet

E-CommerceThe paperless exchange of business information via

the Internet

Internet

A huge, loosely connected computer network thatlinks 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 largerfirms 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 customerrelationships

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E-Commerce Business Models

Exhibit 9.4