Free daily tips, information, advice and ideas
to help you better manage your small business.
Expanding? Need space for that new business? Moving out of the house?
You have three choices. You can lease the space you need. You can share space with another business. Or you can buy a building.
Example: Rita was excited. She was about the realize her dream of establishing her own retail shop. She found a storefront in an up and coming town that she thought was perfect. The landlord was asking a rent that she could afford, but he wanted only a one year lease. This raised a red flag in Rita's mind. On the one hand, if the business did not go well, she would be out of the lease after 12 months. On the other hand, if the business took off, she would be going back to extend the lease after only one year. The landlord would be in the best position to ask a much higher rent because she would not want to move. Rita stood her ground, asking for a 5-year lease. Finally, they agreed to a 3-year lease.
Example: Diane is a personal trainer. She sees private clients in their homes, and she sees corporate employees at company gyms. She is building a client base and reputation so that one day she will be able to open her own place.
Example: John is a furniture designer. He could not afford a space of his own so he went looking for an upscale gift shop. He found one that offered original works by artists and artisans, and he made arrangements to consign his furniture.
Example: Elise is a potter. She used part of her inheritance to buy a small building. There, she established a working studio and display shop. She is supplementing her income by teaching--group and individual instruction. She is set up so that the business pays her back a monthly rental income, thereby recouping over time the money she spent buying the building.
Explore all the possibilities when arranging for space--especially when you are starting out. Opportunities vary. Make certain that the arrangement you make matches your long term goals.
Many will tell you that in today's computerized world, you don't need a space. Well, you'll have to handle your customers/clients somewhere--even if it's in your home office.