How to Locate the Perfect Retail Space

Maybe you've been operating a successful online business for a while, and you'd like to open a storefront. Maybe you don't have a business at all, but you've always wanted to start one and work for yourself. Either way, the act of locating and leasing a retail space is something that's often overlooked in all the commotion.

Before you even start looking at places, take a realistic inventory of your needs and goals. How much room do you see yourself needing to get started? Do you foresee a need to expand quickly if things go well? If you make your own products, will you attempt to gain wholesale customers? If so, that could drive a need for greater than usual storage space. Be realistic, but don't be too conservative. Once you're established, moving can be expensive.

Once you've determined how much room you'll need, consider your audience. Obviously, an expensive urban shop in a trendy neighborhood won't be necessary if you're planning to sell antique farm implements. Likewise, your ultra-modern furniture store may have better luck if you steer clear of low-traffic, rural locations.

Be sure to consider the fact that the premium price you pay for certain locations may not always be worth it. If there's a substantial rent difference, you may find yourself equally successful in the second or third best locations.

Further, you'll want to consider your competition. Sometimes, it's helpful to be near competing businesses. That's often the case with businesses where customers are inclined to shop around a bit as with big purchases like cars, furniture, or jewelry. If you find that a number of similar businesses have all located near one another, it may be foolish to stray from the herd. On the other hand, additional competition could make it more difficult for your shop to stand out, especially in businesses where customers are driven by habit.

When you think you've finally found a place, be sure to read all the fine print in the lease agreement. Will you be expected to meet any community or shopping center requirements? Is there a signage or hours of operation requirement? Be sure that you are fully aware of any extra expenses that could be imposed on you by such policies. Also make sure that you understand any rules regarding early termination of the lease, insurance (both store and parking lot, if applicable), and any payments that might be due in addition to the rent.

If you need help negotiating or making sense of the requirements, hire a lawyer. It may seem expensive, but misunderstood terms could cost you far more in the long run.

Choosing a retail space will engage both your analytical side and your more creative, instinctual side. Do well, though, and your decision could play a crucial role in your future success.