You have been open for business for a while now and maybe you are thinking about opening up a brick and mortar location for your business. That’s a big decision for any small business owner to make. Not only is it a huge financial investment, there are plenty of other expenses that might not be very obvious. Advertising, signage, employees and insurance are all things that you need to consider before making that decision. Here are some tips that everyone should consider before they open a brick and mortar location for their business.
Does your company need a physical location?
Before we get into the tips I think that it’s very important that business owners ask themselves this question. Is having a physical location for your store really necessary? Some owners think that since they have a business, they need a business location. In the internet age this isn’t always true. I would advise against opening a storefront just for the sake of having one.
Location, location, location
Opening a location for your business is going to be a massive time and money commitment and just one aspect of that is finding the perfect site for your business. As they say in the real estate business, “Location, location, location.” this is doubly true when it comes to finding a site for your business. Keep your target audience in mind; make sure that your location is in a place your target audience tends to congregate. Do a little bit of research online in order to find the place that would work the best for you and your company.
Line up your finances
Along those same lines it’s also important to find a place that you can afford. Going into debt is usually an unavoidable thing when it comes to buying real estate. It’s important that you minimize your liabilities. It may sound like a no brainer, but if you do go into debt, it’s important that you make a budget in order to ensure you don’t end up going bankrupt because you have a financing plan that you can’t afford. Along those same lines, don’t let your ability to repay your lenders rely solely on your storefront turning a profit. There’s always a risk involved in opening a physical location for your company.
Expect the unexpected
One thing that I always here from startup businesses after they open a storefront is that things never go as expected. While it may be impossible to plan for everything it’s important to try to keep a nest egg in your finances just in case something goes wrong. As I mentioned before, this is a huge investment and the potential to have a catastrophic effect on your business is definitely there if you aren’t prepared.
This advice is great not only for people looking to open a storefront. But you should always have a small amount of money tucked away on both a personal and business level. Nothing is guaranteed so always try to be one step ahead of life when it comes to finances.
As a lifelong lover of sports, James Anderson is an avid outdoorsman living in Meridian, Idaho. He works a writer for the SchoolLockers.com blog. He loves his job and is a firm believer in doing what you love.