Are you wanting to take your business to the next level? I’ve done this several times in my career and learned many lessons along the way.
One of the biggest takeaways from my experience is DO NOT HAVE A PERSONAL GUARANTEE ~ pay an additional deposit instead.
This gives you freedom with your exit strategy. I’ve been saved twice by paying a quarter or two of rent up front rather than personally guaranteeing a long term lease.
Here are some tips for landing a commercial premise for your business:
💫 Identify your business needs:
Determine the location, size, and layout requirements for your business premises based on your business operations and customer base.
💫 Set a budget:
Determine how much you can afford to spend on rent or purchase of a commercial space. My Dad always recommended to buy the venue & pay rent to ‘myself’ my aunt did this and it paid dividends even after the business was sold. I missed an opportunity several years ago to do this and am still looking for these options when acquiring businesses.
Remember to consider additional costs such as utilities, maintenance, and insurance. This may also need to be reflected in a price increase to your treatment menu.
💫 Research the market:
Explore different options in the area where you want to set up your business. Check out listings online, consult with real estate agents, and visit properties in person to get a feel for the market.
💫 Consider multiple locations:
Don't limit yourself to just one location. Explore different neighborhoods or areas to find the best fit for your business in terms of visibility, accessibility, and competition.
When you explore locations and external environments visit the area at different times of day and different days in the week to check for noise levels and other external influences such as potential parking issues and the amount of foot traffic past your shop window to aid organic growth.
💫 Negotiate terms:
Once you find a property that fits your needs, negotiate the lease or purchase terms with the landlord or seller. Consider aspects like rent, lease length, maintenance responsibilities, and any renovation or customization needs.
This was one of my biggest lessons in taking in a large commercial premise. So much research and professional guidance went into this process. Check out my blog post 84 about some of the lessons I learned when I scaled my business from solopreneur to a six treatment clinic https://www.dianarichardson.uk/post/5-lessons-i-learned-when-negotiating-a-lease
💫 Seek professional advice:
Consult with a real estate lawyer or commercial real estate agent to help you navigate the process of finding and securing a commercial property. They can provide valuable insights and guidance.
Your power team is cruicial to successful business strategies especially when in the scale and sale phases. A strong exit strategy and having a council of professionals to provide guidance can be a make or break for successful exit strategies.
💫 Conduct due diligence:
Before signing any agreements, conduct thorough due diligence on the property. This includes inspections to ensure the property meets your requirements and reviewing lease terms carefully.
This was one of my biggest lessons when scaling the last business… I used to just sign the dotted line and pay the fee… I’ve learnt by getting my fingers burned many times to read the small print before signing up for business opportunities.
By following these tips, you can increase your chances of finding a suitable commercial premise for your business. Good luck with your search!
Thank you for readingt, if this was useful please ❤️ and if it could help someone in your network, please share it with them.
Thank you ~ Diana x
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