Friday, January 18, 2013

Business Lesson 101: Renting Business Space

I have a goal for this blog this 2013. As a micro micro micro entrepreneur, I felt that I can use this blog as a vehicle to share my personal thoughts in doing business. For my opening salvo my topic is about 

“Renting Business Space”

Finding a space for your business may not always be a huge problem because your house could be an ideal site. No need to look further for you may convert a small space of your house into a sari-sari store; or you may use the front part to sell street foods or ihaw-ihaw. You just save a few bucks. But not having to pay a rental fee for a space does not guarantee an advantage.   

For example, in a residential community with many sari-sari stores, would you still consider putting up your own when there is one next to your front door and another one five blocks away? Though there is no crime in doing so, is your business still appropriate and a necessity?

Not paying a rental space to house your business maybe beneficial to certain extent. For you can use that supposedly “rental fee” to fund other initial expenditures. However, to fully utilize your capacity to succeed a thorough analysis is highly suggested. Sometimes a call of conscience is also a fundamental due to humanitarian reasons. Let me end this by rephrasing my first sentence: Not paying a rental space to house your business maybe beneficial to some businesses depending on the type of situation you are in.

Assuming that your product/service is set to hit the market and a space is the only missing link. Before renting a property I suggest that you consider the following:

1.Traffic. A densely populated community is not an assurance that you can get real traffic to your business. In determining your market, do not forget to observe their buying capabilities and habit. Your product/service should complement your market’s purchasing ability and how frequently do they need it.

2.Distance. In relation to traffic, accessibility is also important. A visible store is an instant marketing instrument.

3. Rental fee. In a densely commercial facility, the rental fee of business spaces is expected to be costly. The one month deposit-one month advance rule in renting a residential apartment may not be applicable to commercial properties.

4. History. Ask the owner, the neighbors or even the bystanders. Know what type of business/es that used to stand in your prospect. Know the reason why the previous business left and the problems they encountered. Do not be deceived by the owners enticing words, make your own research.

5. Utilities. Are all basic utilities present in the establishment?

6. Contract. Know the real owner of the building and ask if they issue a black and white contract. If there is none, at least be sure you are transacting with the right person. We were swindled once, and I hope it will not happen to anybody again ever.   

There are certainly a lot more essential factors included in the list. That’s the six basic things, at least.

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