There are so many things to be taken into consideration before deciding to rent a physical store for your new business. Depending on the nature of your business, renting a shop could be an advantages or disadvantages for you.
People from all backgrounds have been struggling with the thought of renting a physical shop for ages. When it comes to this aspects, specific factors needs to be considered. You might actually feel I am talking about utilities, accessibility etc but that is far from it. I am actually talking about the most neglected considerations when it comes to renting a physical shop.
Before renting a physical shop, the following should be considered;
4. How strong is your customer base?
Most businesses start off as online stores and build their customer base from there. They can operate as an online store for two years or more and build customer trust/relationship. During this period, they tend to customers professionally and make sure that customers’ orders are packaged and sent out on time. By so doing, they can countless referrals from established customers who feel confident in referring their friends and families to the store.
As a new business who didn’t start as freelance or an online store, where do you start if you are looking for more customers? People do not feel comfortable patronizing new business because there is no one to ask about your product and services. So before you pump so much money into getting a shop, make sure you have a strong customer base.
3. Have you draft a budget?
Let’s say you are given 1 million naira to start a business and the first thing that comes to mind is renting a shop, this is very common amongst people who are so eager to dive into the market force, have you taken time to draft a budget of your expenses and see if the money would be enough to kick start your business.
A wrong business move is investing all your money in a business space, renting an expensive shop and furnishing it to standard with nothing left in your bank to actually kick start the business. Having a standard shop is okay but when the quality of service rendered in that heaven is poor, customers will never call back.
It is advisable to first buy all the stuffs your business requires and use the spare change to rent a space if you insist on getting a space. Drafting a budget will help you get through this.
2. Have you considered your one year future plan?
Starting a business is actually very easy, but maintain that business to strive in all weather is what’s difficult. It is expedient that you map out a futuristic plan for your business and highlight your one year goal as a physical shop. This goal will help you stay focused in days when it feels like business is slow and customers are not coming.
1. Are you employing staffs or managing the business yourself?
People just start business without first thinking of their schedule and future plans and how it might affect the productivity of their business. It is very important that you put this into consideration and if you are employing staffs, does your business generate that much revenue to pay them?