E-commerce and mobile sales have come a long way, but traditional physical retail stores are still performing well. The success of these stores depends to a large extent on two things: the product and location of the store. The truth is that no matter how good a person's product is, if there is no customer to enter the store, sales will fall.
Putting a company's business in the right place is not only a top priority for startups, but also a top priority for established companies looking for other retail stores. Finding and choosing the best retail space at home or abroad requires consideration of the same factors. The following are the concerns when renting retail space abroad.
What is your budget?
Before looking for a retail space lease, there are two things to define: the rent budget and the store size. Paying for multiple people according to the sales situation of the store can be afforded, and committing the wrong size is a common mistake that tenants make when renting a house. A clear idea of the budget will definitely help narrow down the choices and avoid renting unbearable space.
Traditionally, the affordability of commercial space is based on the ratio of rent to sales. Overall, the average rental-to-sales ratio of small wholly-owned enterprises was 2.98%, of which 1.24% was for construction materials retailers and apparel and accessories retailers accounted for 8.93% of total sales.
The rent of the retail space depends on the location of the property to be rented, its location in other retail stores in the same area, the conditions of the lease space, the length of the lease and its availability. Regarding usability, renting a store in a new mall is cheaper than renting a space in an established mall.
Other costs to consider when renting include: property taxes; insurance; utilities and maintenance. It is important to pay attention to who will bear the cost of maintaining the building and parking facilities. Who will pay for the security service, repair and maintenance costs of the air conditioning unit? How much additional marketing is needed if you are away from the main business center? All of these items add up to the cost of retail store rent.
Forecasting sales on new business to determine how much rent can be paid can be difficult; however, people can always research similar retail operations in the region to understand their rental costs. In some cases, the services of a local broker may be very useful.
How much space do you need?
A spatial variant required for each type of retail store. However, common areas to consider in traditional stores include the main sales area, locker room [if needed], storage room, office and bathroom. Choose a functional kiosk, cart or booth that requires smaller, less detailed spaces. The basic formula for estimating the size of a sales area is: Sales divided by sales per square foot . Of course, this formula may not be applicable to all types of retail stores, so it is best to determine which equipment, display cabinets, shelves, tables, etc. are to be included in the sales location. A too large sales floor might look like an empty store, and a too small store might look confusing and confusing. The local trends displayed by the store are also a consideration.
Rent a retail space that is best for your business
It's a good idea to have at least 3 options for comparison in retail stores and compare them to get the best choice. Narrowing the selection can be attributed to three points: location, cost and size. Once the budget and approximate size have been determined, the location of the retail store will be displayed next.
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Safety and security: from
Choose a safe place to find your business. If customers feel unsafe, they will stay away from retail stores. It is best to study the safety and security of the area from local authorities.
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Traffic and accessibility features: from
Understanding the target market will help business owners choose where to attract the population. A lot of traffic doesn't necessarily mean a lot of customers. The ideal situation is to find a store with a large number of potential customers, but only if they are the target market. It's best to place the store near where the potential customers live, work and shop. Feasibility studies may be very convenient to answer:
· Number of people walking or driving through the location
· Public transport that serves the area
· Parking space availability and accessibility
Please note that retail stores located in malls require fewer advertisements than are located in separate buildings near the business district. It is best to find commercial areas near major highways and public transportation to improve visibility and accessibility.
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Local partition: from
Before finalizing the location, the smart business owner must understand all local policies, rules, and procedures related to the location of the retail store. You should contact your local district committee for information on zoning rules and restrictions that may affect store operations. People should also ask the local planning committee about future plans that may change traffic in the area, such as new road construction and changes in local transportation routes.
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Competitive and compatible companies from
: Business near location competition may seem unwise, but doing so can guarantee competitors' target customer traffic. This strategy is best suited for new retail stores that have not yet established a customer base. Finding retail space near a compatible business organization also ensures targeted customer traffic.
Another consideration is the distance between the retail space and the owner's home. Spending too much time commuting is a waste of energy and time.
Before signing a lease, the business owner should pay attention to the terms, conditions and restrictions of the contract.
Orignal From: How to find the best rental retail space
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