Location of any business may be vital to its success particularly if the

Location of any business may be vital to its success

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Location of any business may be vital to its success, particularly if the business is retail or involves a service. Thus, the emphasis on location in the business plan is a function of the type of business. In assessing the building or space the business will occupy, the entrepreneur may need to evaluate such factors as parking, access from roadways to facility, and access to customers, suppliers, distributors, delivery rates, and town regulations or zoning laws. An enlarged local map may help give the location some perspective with regard to roads, highways, access, and so forth. Some of the important questions that might be asked by an entrepreneur are as follows: 1. How much space is needed? 2. Should I buy or lease the building? 3. What is the cost per square foot? 4. Is the site zoned for commercial use? 5. What town restrictions exist for signs, parking, and so forth? 6. Is renovation of the building necessary? 7. Is the facility accessible to traffic? 8. Is there adequate parking? 9. Will the existing facility have room for expansion? 10. What is the economic and demographic profile of the area? 11. Is there an adequate labor pool available? 12. What are local taxes? 13. Are sewage, electricity, and plumbing adequate? If the building or site decision involves legal issues, such as a lease, or requires town variances, the entrepreneur should hire a lawyer. Problems relating to regulations and leases can be avoided easily, but under no circumstances should the entrepreneur try to negotiate with the town or a landlord without good legal advice. Production Plan If the new venture is a manufacturing operation, a production plan is necessary. This plan should describe the complete manufacturing process. If some or all of the manufacturing process is to be subcontracted, the plan should describe the subcontractor(s), including location, reasons for selection, costs, and any contracts that have been completed. If the manufacturing is to be carried out in whole or in part by the entrepreneur, he or she will need to describe the physical plant layout; the machinery and equipment needed to perform the manufacturing operations; raw materials and suppliers' names, addresses, and terms; costs of manufacturing; and any future capital equipment needs. In a manufacturing operation, the discussion of these items will be important to any potential investor in assessing financial needs.
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F0092 The Business Plan *Property of STI Page 14 of 19 Technopreneurship The Business Plan * Property of STI Page 11 of 13 Writing the Business Plan Figure 7.7 Production Plan Figure 7.7 summarizes some of the key questions in this section of the business plan. If the new venture does not include any manufacturing functions, this section should be eliminated from the plan. Operations Plan All businesses—manufacturing or nonmanufacturing—should include an operations plan as part of the business plan. This section goes beyond the manufacturing process (when the new venture involves manufacturing) and describes the flow of goods and services from production to the customer. It might include inventory
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