And it is not for less because there are several factors that should be considered before renting a premises or office for your business.
Many entrepreneurs toil and fall into financial traps by thinking that they necessarily need a shop to keep your business running smoothly.
Which is a myth, and of course that must be one of the goals, however as such, it must be planned and programmed to achieve it gradually and at the same time. business growth rate.
So today I share you at least 10 reasons why you do NOT need a commercial premises when starting your business:
- Rents too high. The rent of a place varies according to its location. If the traffic of persons is greater the rent will also be it. This can be an advantage as long as that traffic is taken advantage of by offering ideal products for the type of market that circulates. Otherwise, the high cost of rent can drown your income.
- Local accommodation costs. Depending on the type of premises, office or kiosk you are looking for, in many cases the landlord offers you the same with the condition that you make the physical adaptations that you need, and that may be: lighting, floor, telephone lines, painting, decoration.
- Advertising costs. After leasing and conditioning your premises, then you must make it look. And this implies other costs such as advertising and signage. You must consider them within your budget.
- Legal leasing costs. Within the rent of the premises, you should regularly consider the costs of the lease as well as the corresponding deposits for the guarantee for damages and protection of the lessor. This regularly equates to one or two additional income. This is not to mention the credit reference research costs they perform on you.
- Maintenance costs. You should also consider the maintenance costs of the premises, which are regularly established by the shopping centers or buildings where you rent your premises.
- Security costs. Additionally, depending on the area or location of the same, you must also include surveillance and security costs for the safeguarding of your goods. This includes patrol services, alarms, closed camera loops, etc.
- Compliance with contracts. Leases are typically a minimum of one or two years, which represents a long-term commitment. If at some point your business does not take off as you have planned, this can become a very heavy burden that will be difficult to shed.
- Compliance with schedules. Either because the mall requires it or because your own sales goals need it, you will usually be forced to comply with certain minimum days and hours that can indirectly mean the hiring of staff to attend your business. You should consider these costs in your budget.
- Trade restrictions. I remember that some years ago I had a computer accessories store in a store in a supermarket. At one point, I wanted to implement the sale of cell phones and time recharges but the supermarket management prevented me on the grounds that we became in direct competition with them. So I had no choice. You must be very clear about the possible restrictions that the landlord establishes.
- Inappropriate market. When you rent a place, you must carry out a market study that guarantees that the traffic of people who will pass in front of your business is appropriate for your product. Renting a place where people are not interested in your product or simply cannot afford it, will only mean few sales and in the long run, financial burdens that you could have avoided.
I know that now you are wondering: When then, does it suit me rent a place for my business?
And the answer is simpler than it seems. It is convenient to rent a premises when you are fully aware of the costs involved and are financially prepared to bear them.
And of course, there are businesses that do require a location, but the best way to absorb costs is by developing a sales strategy that allows you to create, identify and reach a market of customers who will simply be delighted with your product.
But as we have always said and advised in this blog, the growth of your company It must be gradual, planned and evaluated regularly so that your steps are sure to be successful.
Finally, remember that many of today’s large multi-million dollar companies such as Amazon, Ebay, Facebook and Google, were born in college or in the garage of their owners’ home. They did not acquire offices until the business had started to roll and then they had the financial capacity to bear those costs.
“Renting a space lightly can be equivalent to putting skates on a one-year-old who can’t even walk.”
Plus business ideas: