The one thing that matters a lot while setting up a business is its location. Whether you are opening a new store or moving an existing business to a new city, the site of the trade can literally make or break it.
That being said, there are a few mistakes that are often made by many business owners at some point. So, to make sure that you are choosing the right place for your business, we have shared some common mistakes which you must avoid at all costs. Just read along to ensure that you are not making any of these common errors…
- Going to the wrong realtor
One of the common mistakes made by most of the business owners is choosing a realtor that they already know. This may be because they are their family friend or someone referred by a trustworthy person. But what the owners need to know is that they need a realtor who has good experience and knowledge in the commercial real estate.
Hiring a commercial realtor will always work wonders for you, as they’re very well aware as to which location will best suit your business’s needs and which will not. They have years of experience in leasing office space. When you select a real estate broker, they assist you in selecting a location according to your business be it a shopping mall, open store or an office building.
For example, a shopping mall should be located in a high-class market area, while an open store should be surrounded by people who prefer local shopping. Similarly, an office space must be located in an industrial area where it is convenient for people to travel.
- Relying on demographics
Location on papers is always different from reality. On papers it might seem the best for your trade, but you never know how much the venue suits it in actuality? So before signing a lease, go visit the site and take a look for yourself. Or else you can even visit the location several times during the entire day to analyse the foot traffic.
For example, if you want to open an ice-cream parlour and the site has enough gathering in the daytime but remains quiet in the night, then surely it is going to affect your sale.
Apart from demographics, consider other small things as well like “Do you have your competitor in that area?”, “What is the facility for parking?”, “How will the patrons travel to the spot?”, “What additional equipment you will need there?” etc. Think of all these points carefully and only then finalise the deal.
- Not calculating your budget
One of the biggest mistakes is to not have an estimate of your overall budget for the business place before signing the lease agreement. Small business owners often think that it is okay to pay more rent for an up-and-running area because their business will get a boost there and justify the increased rent. Only once in a blue moon will things go in the right way, but in most of the cases, things often go in the opposite way leaving their trade in a loss.
So, instead of overextending yourself on a lease, find yourself an affordable rent that falls within your budget. Also, ask if there are additional expenses like maintenance fees, upkeep for shared facilities, parking rent etc. You can also cross check these facts with the other tenants in the building or area.
- Not talking with your potential new neighbours
It’s always suggested to have a short conversation with other business owners in the same area before finalising the place. They will not only give an idea of the location, but also help you get familiar with the place and customers. You can also ask them if they are happy and satisfied with the place, and are getting good customer traffic.
- Not looking at the available facilities
A good location is not enough to run a successful business. The place must also have other small and major facilities like adequate water supply, public transport with good frequency and other required electronic equipment like AC, radiators, enough lights, proper fire exits etc.
Also, make sure that the place is insured properly, so that if in case you face any tragic situation, your business will get a financial help to run smoothly once again.
We hope that now you will not make any of these mistakes and get the right business location for you.