Obtain Space and Design the Physical Layout

●      gross lease: a contract stating that the tenant pays rent each month for the space occupied and the landlord covers all property expenses for that space

●      net lease: a contract stating that the landlord pays building insurance and the tenant pays rent, property taxes, and any other expenses

●      percentage lease: a contract stating that the tenant pays a base rent each month and the landlord receives a percentage of the tenant’s revenue each month

Main Idea

Explanation: Entrepreneurs should obtain property that has appropriate space and design its layout according to the type of business to get a good impression on the customers

Specific Example Business:

Ex) In “Suit Supply”, the owners of the business constructed the interior of their stores to look more modern according to the culture and influence as well as display all of their products using a single floor

Important Supporting Ideas:

  •             Idea 1: Compare purchase and lease options.

-Importance to business: owning property offers a bigger tax advantage than leasing because you get a tax deduction on the interest you pay on your loan for the building.

  •             Idea 2 Describe layout considerations for different types of businesses.

-Importance to business: after you have leased or purchased a facility, you will need to design your layout, or floor plan. Your layout must include enough space for employees, customers, merchandise, and equipment. It must also have space for restrooms, stockrooms, storage, and offices.

  •             Idea 3: What type of layout are you looking for for your own business?

-Importance to business: It’s important to understand the ergonomics of your business to have a more efficient environment for your inventory, employees, etc.

Learning Resources

1. URL of resource: http://canadianentrepreneurtraining.com/how-to-assess-the-physical-layout-of-your-small-business-location/

-Subject of resource: How to assess the physical layout of your specific business location

2. URL of resource: https://fitsmallbusiness.com/planning-your-store-layout/

-Subject of resource: Step-by-step guide in figuring out the layout of your business



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