Exam 14: Choosing the Right Location and Layout

When analyzing the labor supply, a small business is concerned only with the level of education and training of the labor force in the area.

A type of business that does well when located near competition is ________.

The index of retail saturation for site #2 is $________.

A(n)________ is a special exemption to a zoning ordinance.

Mini-Case 14-1: Hungarian Heaven Mike Pontya has operated a neighborhood restaurant in Cleveland for over 30 years. Mike is planning to move to Arizona because of his health, and has put the business up for sale. The restaurant, which caters to the local trade, is well known in the Hungarian community of Cleveland as having the best authentic Hungarian food in town, but it is not in a traditional restaurant district. The restaurant has parking for 10 cars. Most customers park on the street. In the past, this was not a problem as there was a great deal of walk-in business from the neighborhood. Now, however, a new four-lane highway passes by the front door of the restaurant. There is a stoplight on the corner the restaurant is on to improve access to the highway for drivers emerging from the neighborhood. The flight to the suburbs has taken a heavy toll on the neighborhood. However, the restaurant is still doing well financially. Terry and Judy Kozma are brother and sister who share a love for cooking and a desire to be in the restaurant business. All of their relatives have encouraged them to quit their jobs and buy the restaurant. Terry and Judy were reared two blocks from the restaurant, and both worked part-time for Mike Pontya while in college. -What site analysis criteria are relevant to Terry and Judy's evaluation of the restaurant's location?

Discuss the various sources of information available to the small business owner for deciding in which region of the country to locate her/his business.

The average community net income is the key factor in Reilly's Law of Retail Gravitation to determine the point of customer indifference.

Geographic concentrations of interconnected companies, specialized suppliers, and service providers that are present in a region are called ________.

Clever business owners choose their location with an eye on the surrounding mix of businesses.

Knowing the type of labor a business needs and preparing job descriptions and job specifications in advance will help a business owner determine whether or not there is a good match with the available labor pool.

A location that has housed several businesses that have failed within the past few years is likely to have a bad reputation and a negative image.

The purpose of zoning regulations is to ________.

Retailers should be careful not to locate near anyone in direct competition with them.

A company's trade area can be influenced by intangible factors, such as physical and political barriers.

By studying the demographics of a proposed location, a small business owner can determine how well it matches the market for the owner's product or service.

What is a business incubator? What can an incubator offer an entrepreneur just starting out?

The "friendliness" of the overall business environment is an important consideration in location selection and information is available to offer objective insight for this assessment.

Which of the following information is not available from Census data?

Criteria for a "good location" are universal and apply to all types of small businesses.

The U.S. Census department's "TIGER" file is a computerized map of the entire United States that gives entrepreneurs the power to pinpoint existing and potential customers.