Steps to secure a space for a retail shop

Written By Steps To Faculty Published September 9th, 2010

You have a retail shop in mind and now need to get a leasing agreement from a landlord to secure the deal. Before you run into signing anything you need to take the following few steps to prevent problems from arising down the line. Take a look.

Step 1 Think about spacing

When you are looking at potential spots for your business, think about the available spacing first. Before signing any agreement, do you have roughly 8 parking spaces for every 1,000 square foot of retail land or space? If not, then you will have fewer customers who find it difficult to park. This will eat into your business. Can you organize your goods in an attractive manner in the space available? These are questions that must be answered upfront.

Step 2 Count your expenses

It may sound like a cliche, but money is really everything. Once you have determined your spacing needs, can you afford it? What part of town is your retail store in? Rent alone is not the only consideration. For example, repairs, maintenance, aesthetics, such as lawn and plant care, utilities, security guards and safety systems, and property taxes must be negotiated or at least expressed in a lease agreement before you sign anything.

Step 3 Do basic research

While you are in negotiations for retail space, go to the local public library and examine the population to ensure that three will be sufficient customers that meet your marketing demographic mix. For example, if you sell baby clothes, then leasing retail space for your retail store will not generate much sales next to a a 55 + retirement assisted living community, generally speaking.

Step 4 Ask questions

Talk to your landlord about other important factors such as lighting, lavatories and sanitation. Find out about crime rate and also if sales are restricted on a Sunday (also known as blue laws). If there is a lot of robberies and other petty crimes in the area, then your sales will be impacted as will your security costs.

Step 5 Sign the deal

If you are satisfied with the agreement and know that your sales will cover your expenses and also leave profit, then sign the retail lease agreeement.

Remember, a little forethought can save you many headaches later on. Please visit stepsto.com for more great business advice.


Roger Due

Investing in Your Destiny® & Coaching Program - Wealth Building Summit Dallas, Texas

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