Why a great store is vital for the results of your company
Great commercial real estate can be hard to find, but rest assured, it’s worth the wait. Retail real estate that is well established, in a favorable location, and affordable can dramatically increase your store’s bottom line. The more profitable your business is, the better it is not only for you, but also for your employees and the local economy.
“Well Configured” Showcase
A well organized store is one that is clean and well organized. It should be large enough for the products you plan to sell, or (alternatively) offer enough office space for those you plan to employ. Stores that are crowded or dirty are instantly off-putting to potential customers, and they often leave without buying anything, sometimes even if they really need to.
A good front window display, showcasing the best of your merchandise or relevant materials related to your services, will help attract customers. It also helps keep the area well lit and inviting. The exception to this rule may be when less light better appeals to your target demographic, such as Hot Topic stores.
Favorable rent
Commercial real estate that is in a favorable location can be even more difficult to find than one that offers your company enough space to do business. Patience is key here though, because nothing is more important than location. You may have the best products in the world, but it won’t matter if no one can see them.
The best location will be one that is centralized for your target audience. It should be located near a busy highway or in a mall that has a lot of patronage. For your convenience, it helps if the store is not too far from where you live. Keeping the travel distance within an hour will make the building more accessible to you.
Affordable
What is considered affordable for your business will depend on your particular situation. However, as a general rule, you want the mortgage or rent on your retail real estate to be as below your potential income as possible. The higher the construction costs, the less profit your company will make. If you can buy or rent a property for less than fifty percent of your total projected income, you’ve done well.
When making your calculations, make sure you have taken into account other business expenses, such as materials, products, payroll, and utilities. If these, added to the possible cost of the store, are more than 80% of your projected revenue, then you will not make any substantial profit. Without a substantial profit, your company will not be able to succeed.
Finding the perfect commercial real estate for your business can take a lot of time, patience, and energy, but it’s definitely worth it. The potential for higher profit returns is crucial to success, and a great store will allow your business to do just that. Just remember that you need a well-organized store in a favorable location that is affordable for your particular financial situation.
