Much of today’s business is done online, and while you can’t escape it, you may also be interested in opening a physical location for your art-based business. Here are 5 important considerations to keep in mind:
1. Think about how much space you’ll need
Based on your business model, what activities will take place in this location? Based on those activities and the number of workers and customers you might expect to be in the space at one time, how large will your location need to be? Be realistic and understand that more space means more money in rent.
2. Think about how much you should spend
Based on your business model and expected target market size, understand how much revenue you expect to make. Many experts advise that your rent cost should not exceed 20%. Of course, the lower your rent is, the more profit you’ll make. With that being said, there are factors other than rent that should be considered when looking for a location.
3. Think about what area would be best for your creative business
Who is your target customer? Where do they live and what other areas do they frequent? Think about what factors are important for your kind of business. For example: Depending on if you’ll need lots of foot traffic or a large industrial building, your ideal area will vary greatly. So ask yourself what you’re looking for in a perfect location. Do forget to ask: What other businesses would be best to have as neighbors?
NOTE: Develop a list of important criteria you can use to help select your final location. Prioritize those criteria and refer to them whenever making a decision about a potential location.
4. Research local commercial real estate agents
Finding a real estate agent whom you think is honest and benevolent is an ideal situation. While that won’t always happen, its important to try your best to find a knowledgable and connected real estate agent. Ask around for recommendations and scour the web for reviews. Once you start working with an agent, share your prioritized list of criteria with them.
5. Visit multiple locations, if possible
Its often helpful to have multiple locations to choose from, so that you don’t find yourself settling on an almost-perfect location. With that being said, there is almost never a 100% perfect location. So make sure to keep your list of prioritized criteria handy and refer to it often. Discuss your available options with your business partners. If you’re a “soloprenenur,” ask your friends and family, or your SBDC Business Advisor, what they think. Talking through your options can often help you understand which selection is best.
Looking for your ideal business location will take time, so plan ahead and try to be patient. If you’d like to read about securing a physical location in more depth, leave a comment below. There are many aspects to finding a great business location; these five tips are the best place to start. Good luck!
Peace, Kayla
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