The old saw (adage) says retail businesses succeed or fail for three
reasons: "location, location, location."
If you are starting a retail business, look for an area with heavy
foot traffic, adequate and inexpensive parking (preferably a free lot)
and a number of thriving nearby businesses. If every other storefront
on the block is shuttered, perhaps there is a problem with the location
itself.
Once you find a place you like, find out its history. How many businesses
have come and gone in that location over the past ten years? If there
is a high turnover, i.e. 5 different businesses in the past 10 years,
perhaps there is a location problem.
Know Thy Lease:
Understand thoroughly the terms of your lease. If you are leasing a
store in a shopping complex, will you have to pay rent plus garbage
and utilities? Find out the hidden costs and fine print.
Terms of the lease: beginning businesses may do best with a
"month-to-month" lease rather than a six-month or year lease. If your
business fails halfway into a year lease you may be liable for the remaining
six months rent. Examine the terms carefully.
To Lease or Not to Lease: Things to Know
Lease Definitions
