Having a retail space in 2020 isn’t easy. The development of the internet and internet shopping meant brick and mortar shops had to think on their feet and adapt quickly. A reduction in foot-traffic meant fewer sales for retail spaces. These spaces aren’t cheap, so something had to be done for the survival of many once loved stores. Business plans were adapted, and retail spaces were changed, for the sake of affordability. Now begs the question; what are the most affordable ways to use retail space?
Lease Vs Rent
There are a few ways in which a building or retail space can be acquired. Some business owners that have enough capital in their company might purchase their desired space, whereas others might not have the financial backing. In this situation, looking at the difference between renting and leasing will provide an idea of what might be more affordable.
A lease is entering a contract with a lessee for a long period to use an asset or property. Whereas renting is entering into a contract for a certain period to use an asset or property. Leasing is usually long term, renting is more commonly short term. The professionals at https://www.phillipsedison.com/space-for-lease/retail-space-for-lease explain that leasing is often cheaper. Once the contract is signed, there is no change to it until the lease expires. However, renting is riskier due to the fact a landlord can change the agreement when they want.
The terms and conditions are predetermined in lease contracts. They are created with mutual acceptance. The terms and conditions of renting can be changed at any time. To save money in the long run, leasing space will have fewer risks making it a better investment. At the end of the lease, you will also have a chance to purchase the building.
Double It Up
Any business owner wanting to utilize their retail space will have to adapt to modern business practices. As online shopping is becoming the preferred method of purchasing goods, any high street business will have to adapt and create an eCommerce shop. This is to keep sales up and create as much profit as possible.
When selling online there’s a chance you might sell more than the shop did so storage space is key. Utilizing your retail space as a storage area is going to save you money by enabling you to store things for the same price instead of renting or leasing a storage unit somewhere else. Another benefit of having your stock in one place is the time it takes to package and send. If you’re going to a different location every time someone orders something from your online store it will take more time which equals more money.
Don’t Overestimate Your Needs
When it comes to choosing your retail space, many people will get ahead of themselves and dream big. Thoughts of potential areas and uses of different spaces will flood your head when, in reality, the thought process should be utilizing the space and making as much money from it as possible. If your shop sells only a few products then there is little need to lease somewhere large as the cost will be too large to accommodate for the fewest number of products on sale. Even if you’re selling a large number of products, finding the perfect balance between shelf space, storage space, and cost of the lease is essential to maximizing profit. You should also prioritize immediate repairs and upgrades like a commercial glass repair of glass doors or getting a Commercial Bulletproof Glass Installation for your storefront.
It’s worth noting at this stage, the larger the retail space the more staff members you’re going to need. These places need cleaning and employees to help customers. Larger units will take longer to clean, meaning more wages going out each month. If you can keep the retail space to a minimum there will be less money leaving your account each month for bills.
Get The Right Location
Location means everything when it comes to a retail space. Having a place with high foot traffic will bring more organic customers to your shop. If the shop is designed nicely and looks clean and tidy, customers will come in on their own accord as they walk past. If you have retail space off the beaten track, then it’s not going to be as lucrative. Sometimes it’s worth spending a little more money on location to ensure you get the number of customers you need to make your plan affordable.
Retail space isn’t necessarily cheap in 2020. Ensuring you have as many boxes ticked as possible to maximize profit is what will save you from the online shopping world. Make your business stand out and you’ll reap the rewards of a brilliant location. Make the right decision when it comes to leasing or renting, and stay passionate. Love and passion will help run a successful business.