Plant and Equipment Unit

Published: Aug 4 , 2004

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If you have any questions about this Business Plan Unit, feel free to contact gerry@unclemaxsays.com

Building Site

Do you currently own and/or occupy a building/space?

How well does it rate in the location analysis below?
Have you compared this option with one of the other options (rent, build or purchase) below?

Are you planning to build a facility?

Will this be an integral part of this business plan or be treated as a separate project?
Will you include the listings of the location analysis below in your building plans?
Will you be seeking advice from engineers, architects, tradespeople and business associates?

Are you planning to purchase a building?

Will you include the listings of the location analysis below in your purchase plans?
Will you be seeking advice from engineers, architects, tradespeople and previous tenants?
Have you considered your cubic footage requirements?
Are their adequate conduits installed for HVAC (hydro, ventilation, air-conditioning?)
Is there an adequate electrical supply?
Are the appropriate electric meters installed?
Are water meters installed and used?
What is the strength and load capacity of floors and ceilings?
What are the costs for removal or use of existing fixtures?
What is the strength of structure and permission for sign erection?
Is there a need for protection from neighboring (restaurant, food storage) pests?
Are there any indications of leaking roofs?
What is the current adherence to fire regulations?

Are you planning to lease a building or rent space within one?

Do the lease terms match your business plans?
Will the landlord grant a reasonable rent holiday?
Will this grace period be beneficial to your startup or transition stage?

Have you visited the facilities of businesses similar to yours?

Can you improve on what you have observed?
Do you have a clear understanding why the sites of others have succeeded or failed?

Are you seeking a permanent or temporary location?

Do these decisions have short and long term dimensions?
Are you aware of the important contribution location has to a business success or failure?
Have you heard of the marketing definition for success: location, location, location?

Location Analysis

Refer to the Decision Making section for helpful analysis devices.

Do you know the minimal, optimal or ideal location requirements for your type of operation?

What is your authority (experience, advice, observation) for this knowledge?

Do you have a guide summary for reference when listening to an agent or landlord?

Does this summary provide you convenient space for notes specific to each location?
Is your data organized for decision-making or for efficient presentation?

Which of these location criteria are essential for your business?

What are the Lease / Purchase terms?
Are the zoning regulations compatible with your operations?
Are the rental / purchase costs within your budget?
Are there any extraordinary occupation costs?
What is your position within the overall site?
- Will you be on the floor appropriate to your business?
- Do you require and have direct access from the street, etc.?
- Will there be adequate access for handicapped persons?
Do you require to be above the first floor for security purposes?
Is there space and facilities for all your functions and equipment needs?
- Are the offices large enough to accommodate your office furniture?
- Is there a lunchroom area?
- Is there space for copiers, fax machines, computer servers, network printers, etc.?
- Will you require counter space for assembling printed documents?
- Do you have need for a meeting or board room?
- Are there sound-proof areas for meetings requiring privacy?
- Do you have need for moveable walls to accommodate large gatherings?
How many parking spaces are available?
- Is there convenient access for you and your staff?
Is there adequate space for your requirements?
Does the location have visibility for promotional opportunities?
How will the location enhance your image?
Will the walk-by traffic (potential drop-ins) match your needs?
Are bus routes and stops convenient for your customers and staff?
Will the drive-by traffic match your needs?
- Will it afford easy access to your premises?
- Will it afford opportunities for signage if permitted by local bylaws?
Can you display your merchandise to passing traffic?
What is the condition of the site?
- Is it ready for immediate occupancy with alterations?
- What type / costs of leasehold improvement are required now or later?
Are there any store hour opening constraints or obligations?
Is there room for future expansion?
Will you be able to achieve a layout efficiencies?
Is the landlord/seller cooperative?
Do the neighboring businesses enhance your image?
Are the neighbors cooperative with each other?
What is the proximity to your target market(s)?
Are the shipping and freight facilities compatible?
What is the proximity to your competition?
Are there any security or safety concerns?
What is the proximity and access to your specific labor resources?
What municipal services are present or lacking?
What is the option to buy probability?
Is the history of the location a factor?
What is the life cycle or trend of the area?
Is there an anchor tenant?
- What is the status or compatibility of the anchor in relation to your business?

Leasehold Improvement Requirements

Is there a list of the improvements including the cost estimates?
What are the expected start and finish dates of the improvements?
What is the life expectancy of the improvements?
Are there any associated maintenance and repair costs?
What proportion of costs are contributed by the landlord?
Can any improvements be considered moveable?
Will the amortization schedule match your business plan?
How are these related to the terms of your lease?

Equipment

Have you explored the options of purchasing, leasing and renting of equipment?
What are the merits of using service bureaus on a need basis?
Have you investigated and evaluated all financial / taxation ramifications of major acquisitions?
- Is there a calculation of return on each major expenditure alternative?
What are the alternative uses of funds expended on equipment?
Will the expenditures be funded by investment capital, loans or operating revenue?
Is there an option to share usage of some or all equipment with others?

Office Furniture

Have you considered purchasing used furniture temporarily?
Are you able to borrow under-utilized furniture from a friend?
Are you able to manufacture some units from raw materials?
Do you have a list of basic needs for the startup period?
Are there alternatives for the costly items such as a reception desk?

Office Equipment

How many additional features are needed for the photocopier?
Will the fax machine be a stand-alone or incorporated in computer network?
How many of which type of office desks, chairs and file cabinets are required?
Will you be referring to the Computer Systems Unit of the QnA Business Plans?
Will you need individual lines or a complete inter-office telephone system?
- Will a telephone system reduce the need for outside lines?

Lunchroom Equipment

What types and how many coffee machine will be appreciated?
What types and how many microwave ovens will be appreciated?
What type of refrigerator will be necessary?

Manufacturing Equipment

What consulting resources are available for gathering and evaluating data on this equipment?
What is the utilization expectancy for each piece, or class, of equipment?
Is your decision information independent from that of the suppliers?
Will you respond specifically to the questions at the top of this unit on equipment?
Will your data include the expected revenue from the output of this equipment?
Will your data include life expectancy and repair costs?
What are the carrying costs (space rental, power, operator wages, repairs) based on utilization rates?

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