Manage small Business

Location and physical layout

Plan and control production
Staff recruitment
Merchandising
Marketing strategy

Small venture Business

ubash

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!
Small venture Business
ubash

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

Small venture Business

ubash

Contents 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)
Small venture Business
ubash

One or two
pages
One page +
appendix
As many
3-4 +
appendix
Depends on
nature of
business

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)
6.

Small venture Business

ubash

2page +
appendix
3pages +
figures.
1- 2
pages

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.
Small venture Business
ubash

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.

Small venture Business

ubash

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.

Small venture Business

ubash

Economic considerations
INDUSTRY
Farming / manufacturing/ trading
TREND
High satisfaction/ growing/
stationary/ declining

DIVERSIFY
Many / variety / many of same
type/ dependent on industry
SEASONAL
Little or no change/ mild / highly
changing

PERMANENT
Old & well established/ old &
reviving/ new & promising/ recent
& uncertain

FUTURE
Promising/ uncertain/ poor outlook
STABILITY
Constant/ average/ fluctuation

Small venture Business

ubash

Population & Competition consideration

INCOME
Wealthy/ well distributed/
middle/poor

NOS. STORES
Few/ average/ Many / too many

TREND
Growing/ large, small & stable/
declining

PRESENCE OF CHAIN STORES

No chains / few / average / many
well established.

TYPES OF COMPETING
LIVING STATUS
STORES
Own home/ pay bug rent/moderate Unattractive / average/ old and
rent/ low rent
well established / outside the
community
TYPE OF MANAGEMENT
avg/ alert/
Small ventureProgressive/
Business
ubash

Select Physical location

Site history
Compatible neighbours
Convenience
Business climate
Aesthetic climate
Local custom
Cost
Small venture Business
ubash

Examples of Floor Space

in square metres
Bakery
Coffee shop
Furniture
Hairdresser
men
Hairdresser
women
Pet shop
Shoe repair
Small venture Business
ubash

140
140
800

20
80
80
10

A clear site survey

TRAFFIC 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

Small venture Business

ubash

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

Small venture Business

ubash

AGREEMENT TO LEASE
Rental 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
Small venture Business
ubash

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 contract
Operating lease
Short term. Like for a car
Car is regs, insured & maintained by rental company.

Small venture Business

ubash

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.

Small venture Business

ubash

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

Small venture Business

ubash

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.

Small venture Business

ubash

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.

Small venture Business

ubash

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

Small venture Business

ubash

Small venture Business

ubash