Sample of Justification of Location free essay sample

The location of the business will be instrumental to its success. Our operation will target the middle-income pizza customer seeking a low- moderately priced menu. Key customer considerations relative to our location include: high vehicle traffic flow, high visibility, convenient and reliable accessibility, safe surroundings, and plenty of parking. Such locations are usually priced in the mid-range of the real estate market. We also considered a number of other factors including: total rent, competition, neighbourhood stability, appearance of the building, proximity to customers, police and fire protection availability, taxes, political climate, noise environment, our initial and future space needs, accessibility to labour pool, any pending rezoning issues, planned or existing road construction, and satisfaction of current area business owners. Business Name has a prospective location at Address Our location satisfies our key customer needs of: high vehicle traffic flow near Northtowne Shopping Center, high visibility from El Rancho Drive going to and from housing developments, convenient and reliable accessibility, safe surroundings, and lots of parking. We will write a custom essay sample on Sample of Justification of Location or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The location’s traffic count is approximately 150,000 Average Daily Traffic count. The business is served by Cross Streets, and is very close to the US-395 on/off ramp. This location can be accessed by two entrances, one entrance regulated by a street light on Cross Streets. An analysis of crime and traffic statistics satisfies the safety needs of our customers. The on-site parking can accommodate XX cars. In order to create a space that meets our standards, we will need to extend two non-loadbearing half walls to the ceiling, put up electric outdoor signage, replace the bar countertop, place tile over the existing floor in the front of the house, add under-bar lighting, and paint the walls to match our color scheme. Many of these repairs, specifically painting and flooring, can be carried out without a professional contractor; those that cannot will be contracted out to West Coast Contractors. This quality contractor will enable us to capture competitive marketplace pricing and control our costs. Examination of our Startup and Twelve-Month Cash Flow Projection (Figure 3 of the Attachments) provides detail for the cost considerations of our chosen location. Our moderately priced menu will allow us to accommodate disproportionate facility costs relative to our projected revenue potential. We will need to negotiate a â€Å"per-square-foot† lease cost that will support reasonable operating expenses and an opportunity for a profit. Our financial projections indicate we can reasonably accommodate a lease cost in the range of $2. 30 per square foot. Additional common area charges and maintenance expense experience provided by the landlord are also factored into our facility cost projections and are well within the reasonable range for operations of our type. The costs of our operation at this location will also be slightly higher than those of other businesses of our type, however this particular location compensates for this slightly higher cost by including a very large majority of equipment necessary such as ovens, chairs, shelving, prep tables etc. Having spoken to the agent and the former owners of the business, we concluded that the pizza restaurant that was originally in this facility failed because the owners invested about $350,000 into equipment and $150,000 into building renovations, and then couldn’t pay back the huge loan they had to take out. In this aspect, their loss is our gain, because the equipment is used and under lease, we only have to pay a fraction of the cost of the equipment, and our loan is much smaller, meaning smaller monthly payments. The landlord is also in the process of putting a large electric sign for the shopping center on Street. This means that we have another advantage the previous owners didn’t; our name on the side of a street with 150,000 Average Daily Traffic Count.