It’s easy for us as passionate retailers to quickly fall in love with the “perfect” space and location, but how do we know it’s the right business move? In this episode, I’ll talk you through four things you need to know and do before signing a lease for your retail business.
As a retail coach and the daughter of a father who was a retail leasing “guru”, I can share from experience that I have seen a lot of lease agreements go sideways or have surprises.
Here are a few things shop owners need to consider when leasing a new location:
1. Set a budget.
Talk to leasing agents regarding price/square foot, average rental prices in the area you are looking to open a shop in. Be aware of what leasehold improvements you will want/need to make.
2. Do your due diligence.
What can you negotiate?
- Lease length
- Rent increases
What should you look for in the lease that you might miss?
- Hidden costs
- Tax/Insurance requirements
3. Be sure everything is in writing and have a mentor and/or professional look it over.
4. Know what YOU can afford.
Do you know what % of your gross sales should go to rent, or how much you will need to make to pay that rent? I share that industry average % and more in this episode.
“Our heart can convince our head of anything, so we want to make sure it doesn’t convince us to get into trouble. So put your CEO hat on and your heart and head can have a conversation with all of the right information.” – Wendy Batten
By following these steps, retail business owners can make an informed decision about leasing a space that aligns with their budget and business goals.
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Episode 22 – 10 Things to Consider Before You Open a Retail Business
Episode 62 – Three Pitfalls to Watch Out For So You Don’t Lose Your Business
Episode 89 – Money Talk & Mindset with Profits First Coach April Stroink
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