Great commercial real estate can be hard to find, but rest assured it is well worth the wait. Retail real estate that is well set up, in a favorable location, and affordable can drastically increase your store’s bottom line. The more profitable your company is, the better it is for not only yourself, but also your employees and the local economy.
“Well Set Up” Storefront
A well set up storefront is one which is clean and well organized. It should be large enough for the wares you plan on selling, or (alternatively) offer enough office space for those you plan to employee. Stores which are crowded or dirty are instantly off-putting to potential customers, and they will often leave without purchasing anything – sometimes even if they really need it.
A good display in the front window, which shows the best of your merchandise or relevant materials pertaining to your services, will help to draw customers in. It also helps to keep the area well-lit and inviting. The exception to this rule may be when less light appeals better to your target demographic, like Hot Topic stores.
Favorable Location
Commercial real estate which is in a favorable location can be even harder to find than one which offers your company enough room to do business. Patience is key here, however, because there is nothing more important than location. You may have the best products in the world, but it will not matter a bit if nobody can see them.
The best location will be one which is centralized to your target audience. It should be located near a well-traveled road, or in a shopping center which sees a lot of patronage. For your convenience, it helps if the store is not too far from where you live. Keeping traveling distance to within an hour will make the building more accessible for you.
Affordable
What is considered affordable for your company will depend on your unique situation. As a rule, however, you want the mortgage or rent on your retail real estate to be as far below your potential income as possible. The higher your building costs, the less profit your company will end up making. If you can purchase or rent a property for less than fifty percent of your overall projected income, you’ve done well.
When making your calculations, be sure you have taken into consideration other business expenses, such as materials, products, pay roll, and utilities. If these, added with the possible store cost, are more than 80% of your projected income, than you will not be turning any substantial profit. Without a substantial profit, your company will be unable to succeed.
Finding the perfect commercial real estate for your company can take a lot of time, patience, and energy, but it is undoubtedly worth it. The potential to make a higher profit yield is crucial to success, and a great storefront will allow your company just that. Simply remember you need a well set up storefront in a favorable location, which is affordable for your unique financial situation.