Thursday, November 7, 2013

On the business path: Retail-2

So how do you choose a location? you can choose to look at the ads in the newspapers, on the internet, contact your local realtor or scour the neighborhood yourself or contact with your friends, family, acquaintances, other neighborhood stores (here you have to be careful if you are opening a competing business, the next similar business may not help you that much or at all or may thwart your efforts to open up there). And it is not only that you have to check where to open but you have to be proactive to see if your location gets much needed foot traffic. The better the location, the more expensive will be your property if you want to buy it outright but for now we will stick to the rental situation where you will be renting from the landlord. Please note that commercial property rentals have entirely different lease terms then residential. While the residential lease can be anywhere from one year to at most two years but the commercial ones can be five years or more, so it is imperative that you chose the location which can maximize your profits and revenue enough to pay your rent and the retail stores expenses and leave something for your household expenses. Since you would be operating this venture part time, you would need somebody who can be there full time so that you don’t lose business. But first thing first, you will need to observe in person the locality of the proposed retail location and see how much traffic that neighborhood is getting.

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