It may be hard to believe that real, physical stores are still being opened, especially when we live in a time where people would rather click to order items online without taking two steps out the front door. However, 58% of shoppers between the age of 18 and 25 prefer in-person shopping to online, according to a study by the Walker Sands Future of Retail. Opening a brick-and-mortar shop is still in style and can be quite successful, if you consider these factors regarding your new space.
- What is the value of the space?
- This is a good time to think about what your business is going to offer and what will best serve the customer. If you are planning to sell physical products, are they best presented to a customer in person or online? For example, clothing stores tend to be better suited at physical locations where customers can come in and try things on. Whatever goods or services you offer, make a list of what an in-person experience can offer than online cannot.
- Where is the space located?
- As I’m sure you’ve heard time and time again, location is everything! When determining the best location for your business, consider things like whether you’ll rely on foot traffic, if you already have a large clientele in a specific part of town, if the businesses surrounding you will draw similar clientele to the area, etc. It is also important to make sure that the area you are looking into is zoned for the type of business you want to open.
- How big is the space?
- Sit down and think about the future and your expectations of growth over the next few years. If you choose a space that is too large, odds are you’re spending more on a lease than is currently necessary. If you choose a space that is too small, you may grow quicker than you thought and have to relocate sooner than you would like.
- What are the stipulations of your lease?
- Understanding your lease backwards and forwards is one of the most important steps you can take when looking at a new space. No one wants to break a lease and end up owing more money than they planned. If you are not 100% sold on a location but still need to move in, negotiating a short-term lease with the option to renew may be something your landlord is willing to offer. Another part of your lease worth looking into is rent increases. Find out at what points they occur and try to negotiate a longer timeline, if possible. In the end, your lease should be a fair and honest agreement between you and your landlord. Hiring a lawyer to review your lease before signing the dotted line is another wise step you can take.
- What have you budgeted for?
- Renting or purchasing a space can be expensive, especially when compared to running an online business. When considering your budget, keep in mind the ongoing and unexpected expenses, such as renovations, staff, marketing efforts, insurance and more.
Opening a new business is a thrilling step that can bring lots of opportunities, growth and customer reach. Though real estate can be a hectic and complex task, with a little organization and planning, you can find just the right space you’re searching for!