PHYSICAL FACILITIES:

BUSINESS

EFFICIENT BUSINESS FACILITY

a.1) If you are presently in business: - straightforward process - replacement facility may be no more difficult - valuable experience of seeing how your business ran out of the present facility - proposed solutions to any facility problems may be theoretical

a.2) If you are just starting out/small business: - evaluate the operating steps of your business (the key things that you must do in running your business) - do whatever you can to learn as much as possible about the business before you find a facility, swing open the doors for business, and learn as you go.

COMMON SMALL BUSINESS REQUIREMENTS

A. Business Operating Steps and Your Physical Site Needs Functions to consider: Marketing/Billing/Collection Payroll Facility maintenance Security
- the process of mapping out operating steps for your business is designed to get you thinking about your facility needs but this process may not be enough because the business owner may concentrate on the physical structure of the business facility.

B. Facility Size, Layout, and Appearance - function as a tool that helps you to efficiently do all the things necessary to bring your businesss products or services to its costumers (based on the type of business you operate).

b.1) Retail and Service Business - vary greatly in their facility size requirements and in their need for on-site inventory or supply storage.

b.2) Wholesalers and Manufacturers - generally do not have costumers come into their facilities. - Wholesale - often require large, open facilities - Manufacturing may need to be highly specialized to accommodate heavy machinery and assembly lines

C. Meeting Special Facility Needs for Docks, Facilities and Environmental Concerns c.1) Dock Facilities c.2) Refuse Facilities c.3) Environmentally Damaging and Hazardous Materials

Evaluating the Neighborhood When Choosing a Business Facility

A. Ease of Access to Costumers - make sure that the chosen community provides ready access to enough potential customers to support your business. B. Reliance on Suppliers C. Availability of Employees - you should carefully consider the availability of qualified employment prospects within a half-hour drive of your location.

C. Availability of Employees - you should carefully consider the availability of qualified employment prospects within a half-hour drive of your location. D. Business Facility Parking and Community Character Issues - depending on the type of business you operate and whether you have employees, adequate parking can be a major concern.

E. Character of the Community - Consider the Quality of Community Services: police and fire protection, education and health care. F. Community Rules and Access to Utilities - always check the zoning classification and rules that apply to a specific parcel of property in a community

- obtain competent legal advice about the content of such contingency provision a. Access to Credit can be an important asset to your business b. Access to Utilities locate your facility where utilities are provided at lower rates by another company

G. Nearby Work Business Affects Your Business - Proximity to a magnet store can be a double-edged for a small business. If you determined that you will benefit from a nearby magnet store, there are other things that you can do:

a. Adjust Your Store Hours if possible, think about opening your store a little earlier and closing it a little later than the magnet
b. Coordinate Your Promotional and Activities

Sale

HOW TO DECIDE WHETHER YOU SHOULD LEASE OR BUY A BUSINESS FACILITY

Factors to Consider:
Control of the Property Consider the Long-term Cost Havent Found a Suitable Property to Lease Area of Appreciating Land Values A Purchase may Bring You Tax Savings

A Purchase may Bring You Tax Savings Current Sash Flow is of Vital Importance You Dont Want Maintenance Duties Retain Your Mobility Companys Credit Rating May Not Support a Mortgage Havent Found Property to Buy Facility may be in an Area of Declining Real Estate Values