Facilities and Equipment

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There are 5 main considerations for this activity:

Note: some of these will only be relevant to you if you are producing a physical product.

1. 1. 1. What facilities do I need to operate my business?
      2. What equipment do I need to operate my business?
      3. What considerations are there with regard to the production of my products or provision of my services?
      4. What considerations are there with regard to the delivery of materials or supplies to my location?
      5. What considerations are there with regard to the delivery of my products or services to my customers?
   We will look at these questions one at a time.

1. What facilities do I need to operate my business?

1. Many first time business owners will be operating a home-based business. Others will be leasing or renting a space in a local retail or industrial centre. Either way, there are some considerations which may impact your monthly bottom line or start-up costs. Here are some questions to consider:
   1. • Will your business be operating out of your home or will you be renting/leasing a space?
      • If renting/leasing, how much per month will your costs be?
      • For either case, are any renovations needed to accommodate your business? How much will they cost?
      • Will you need additional storage space as well as office or showroom space?
      • Whether at home or in an additional location, what do you estimate your monthly expenses to be in terms of increased utilities, property taxes etc

2. What equipment do I need to operate my business?

1. Even a home-based business may need equipment to help it get started such as a computer, desk or other office equipment. Alternatively, it could be that you will be utilising equipment you already have. For a non-home-based or industrial type business, there may be a lot more to consider. This question allows you to take the time to list the equipment you will need and to put a cost against each (even if you are re-utilising existing equipment – name it and add a current value).

Think about

1. :
   1. • Machinery ie manufacturing machinery, industrial equipment such as loaders, excavators, utility vehicles etc.
      • Non industrial vehicles ie cars, trucks, trailers etc
      • Technical equipment including mobile phones, printers and computers
      • Furniture

3. What considerations are there with regard to the production of my products or provision of my services?

1. This question is looking at considerations in regard to the 

process

1.  of creating your products or providing your services at your business establishment ie what supplies or materials do you need to produce or create the thing you are selling?

Think about:

1. 1. • The suppliers you will be using and what the details of the contracts/agreements you have with them are
      • Materials required to create initial stock levels and associated costs
      • Materials required to maintain ongoing stock levels and associated costs
      • Supplies that will be used as part of a service offering – this may include “free” samples, welcome gifts, materials that you supply as part of the service ie cleaning materials for a cleaning service
      • Administration related supplies and materials for start up and ongoing – with costs

4. What considerations are there with regard to the delivery of materials or supplies to my location?

1. This question is asking you to consider the 

logistics

1.  and 

costs

1.  related to the delivery of materials or supplies to your business location.

Think about:

1. 1. • Delivery times and schedules
      • Access to your premises or alternative drop off locations
      • Additional mail order costs (on top of supplies if applicable)
      • Rental of PO Box

5. What considerations are there with regard to the delivery of my products or services to my customers?

1. This question is asking you to consider the 

logistics

1.  and 

costs

1.  related to the delivery of your products or service to your customers.

Think about:

1. 1. • The delivery times and schedules you are promising
      • How you will transport or mail products including mail order costs
      • The creation of any supporting paperwork required to be sent with the orders

What did our Case Studies say?

We asked one of our Case Study participants to share his response to this activity:

Geoff Walker says, “My business is home-based and operates out of my detached triple shop on my property. I have a business license which allows me to operate a business of this nature. My clients have easy access to my property via an established driveway which does not interfere with other neighbours (I am in a rural community and out of subdivision). Deliveries will also use this route. I have agreements with two suppliers for car maintenance/bodywork finishing products. They both have a turnaround time of 48 hours from order to delivery in my area. I have an online account with the first (immediate credit card payment) and a 30 day account with the second (payment online by credit card after invoice received). I only tend to keep stock levels high for those models and colours that are popular with the classic car owner – all the rest is ordered as the work comes in. I use an online accounting system, Simply Accounting, that creates invoices to bill my own clients and I do that when they come to pick up their vehicle. They must pay in full unless they have asked for a little extra time up front (I will offer 30 or 60 day credit with appropriate rates of interest). I try to be flexible without impacting my bottom line too much. I don’t offer specific turnaround times for the actual work I do but do promise that I will have evaluated what needs to be done to each vehicle within 24 hours of drop-off to me. I then give a time estimate for completion. I already have all the tools I need to run my business but may look at upgrading some of them as time moves on.”

Activity

Not all the questions asked above will be relevant to your business model. That’s okay. Some businesses will have lots of operational considerations, others very view. Consider each question and create your answer based only on those that are relevant to you.