how to choose Business Location and start to creative business ideas from home
Monday, February 11, 2019
Business Plan for Small Business, how to choose Business Location and start to creative business ideas from home.
"Location" - have you heard that one before? If I had a penny, I'd be a rich man. Is it true? It can be; but start up businesses should not get all wrapped up into thinking that location is the "be all and end all'. It is important, and if you could find a small space on Rodeo Drive in which to set up a little business and pay only $500 per month then it is definitely true, but that is unlikely to occur.
Most of us have a preference - uptown versus downtown or in a major mall - nevertheless, it is sometimes hard to find exactly what you are looking for at the price you had in mind. And it is the price thing that ultimately comes into play when searching out a location.
If you have completed a financial forecast you will have an excellent idea what price you can afford to pay in rent. It is on the sheet in black and white, say $2,000 per month. At that rate, you can turn a profit even in the low revenue months. At $3,000 you can't; so the decision is easy.
Remember when looking for a location, you are the customer. Nothing happens until you agree to sign a lease. Until that moment, you are in control; and enjoy that power. Exercise that power in negotiations.
If you are good at what you do (and are not thinking of opening your business next to the sewage treatment plant), your customers will find you. Parking and curb appeal are also important, as is ready access for deliveries and pick-ups. If you have thought your concept through in detail, you will already have a good idea about the size and layout of your space. When you see it, you'll know. Sometimes a smaller place is better because it needs fewer customers to make it look busy.
Do not panic. Sure it would be great to make July 1st or December 1st; however, you are in it for the long haul and there are always more summers and more Christmases. If you make a hurried decision and potentially a rash one, you could be stuck for five years in a lease that you don't like and cannot really afford. Take your time. Make sure that you end up with the right deal, not just the right place. Seasonally affected revenues can be dramatic; nevertheless, you should be able to make money in every month, not just the big months. That is important because it is easier to lose money than make money in business.
Now if you have the chances to secure what you think is an ideal location, then go and rework your numbers. Ask yourself this question. "Will the location increase our traffic and ultimately our sales and will those sales be able to cover the additional rent?" Take your time and squeeze your numbers, that's small tips about Business Plan for Small Business, how to choose Business Location and start to creative business ideas from home.
"Location" - have you heard that one before? If I had a penny, I'd be a rich man. Is it true? It can be; but start up businesses should not get all wrapped up into thinking that location is the "be all and end all'. It is important, and if you could find a small space on Rodeo Drive in which to set up a little business and pay only $500 per month then it is definitely true, but that is unlikely to occur.
Most of us have a preference - uptown versus downtown or in a major mall - nevertheless, it is sometimes hard to find exactly what you are looking for at the price you had in mind. And it is the price thing that ultimately comes into play when searching out a location.
If you have completed a financial forecast you will have an excellent idea what price you can afford to pay in rent. It is on the sheet in black and white, say $2,000 per month. At that rate, you can turn a profit even in the low revenue months. At $3,000 you can't; so the decision is easy.
Remember when looking for a location, you are the customer. Nothing happens until you agree to sign a lease. Until that moment, you are in control; and enjoy that power. Exercise that power in negotiations.
If you are good at what you do (and are not thinking of opening your business next to the sewage treatment plant), your customers will find you. Parking and curb appeal are also important, as is ready access for deliveries and pick-ups. If you have thought your concept through in detail, you will already have a good idea about the size and layout of your space. When you see it, you'll know. Sometimes a smaller place is better because it needs fewer customers to make it look busy.
Do not panic. Sure it would be great to make July 1st or December 1st; however, you are in it for the long haul and there are always more summers and more Christmases. If you make a hurried decision and potentially a rash one, you could be stuck for five years in a lease that you don't like and cannot really afford. Take your time. Make sure that you end up with the right deal, not just the right place. Seasonally affected revenues can be dramatic; nevertheless, you should be able to make money in every month, not just the big months. That is important because it is easier to lose money than make money in business.
Now if you have the chances to secure what you think is an ideal location, then go and rework your numbers. Ask yourself this question. "Will the location increase our traffic and ultimately our sales and will those sales be able to cover the additional rent?" Take your time and squeeze your numbers, that's small tips about Business Plan for Small Business, how to choose Business Location and start to creative business ideas from home.