Retail Stores
September 18th, 2009 | 
Author: If you are planning to open a “brick-and-mortar” retail store, you need to be accessible to your customers. The question you should ask yourself is, “What locations are available that are frequented by consumers who are likely to buy my particular products?” The type of retail business you are in will definitely drive your decision.
If you are opening a grocery store specializing in Latino foods, you should consider locating in an area with a predominantly Hispanic population. If you are selling music CDs, you will probably need to locate in a shopping mall or strip center that has adequate parking as well as foot traffic.
On the other hand, if you are opening a sandwich shop to service students taking night classes, it would obviously be best to see if you can actually locate in an area in the school and adjacent to the classrooms.
- If you are buying an existing retail business: The business will already have a location. Before you buy, you should determine if the present location is a plus or minus for the business.
- If you are not also buying the facility, you will have to negotiate a lease agreement with the landlord. Be sure that you understand the terms of the agreement before you enter into it. How much is the rent? How long will it be in effect? Is it renewable? Who pays the expenses (leasehold improvements, maintenance, utilities, insurance, etc.)? Generally, it is best to have an attorney look over your lease agreement so that any issues can be resolved ahead of time.
- If you are starting a new retail business: Putting your business in the right location might be the single most important thing you do. No matter how good your products are, you will not sell them unless you can get the customers through the door. Assess your situation. Make a list of your location requirements population density, traffic patterns, access, zoning and permits, affordability, etc. Then you can search for available properties that will meet those needs. You can probably do a property search via the Internet. Alternately, there are business brokers who specialize in finding available property and helping you to negotiate a lease agreement. You can also check with the Chamber of Commerce in the area in which you wish to locate.
- If you are buying a retail franchise: You should have already evaluated the franchise in terms of the concept and product. Now it is time to look for a location. It should be visible to the flow of traffic and have easy access for your customers’ convenience. The franchisor will control the area where you operate and will most likely help you to decide on and negotiate the location.
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