Your business started with a late-night case of insomnia. Now you have a business plan, a group of investors on board, and a concise operational plan. All that is left between you and success is securing a location to house your brand. Don't take this step hastily. Commercial real estate is very different from residential real estate, and choosing the wrong location could negatively affect the potential of your business.
Always investigate the history of any location you're considering. It's estimated that at least 80 percent of all businesses fail. Make sure the location isn't contributing to your chance of failure. For example, if your goal is to open up an eatery, but the space you are looking at has previously housed four restaurants, all of which closed within the first two years, it might not be wise to follow in their footsteps.
If other restaurants have been unsuccessful, there is a reason, and it's likely not that they had a bad menu selection. It is likely that people can't clearly see the space from the road or that the space is simply hard to access. Whatever the case, if the history of the location doesn't match your goals, it might not be the right choice for your brand. If you're unsure of the property's history, your real-estate agent should be more than happy to investigate this information for you.
Tone of the Space
When looking at different commercial properties, always think about the tone of the space and whether or not it would be complementary of your operational style. To put this into perspective, consider a cutting-edge technology brand that promises to deliver some of the most unique and innovative electronic equipment since the invention of the laptop computer. This sounds exciting, right? A dull, traditional office space would likely not deliver the type of tone the brand wants to establish. Instead, a well-lit, modern space with a minimalist design would be a better match for this type of operation.
When potential customers walk into your space, you want them to almost know what it is you're offering, or selling, without seeing your product first. When touring different spaces, if the tone doesn't pair with your brand, you might want to keep looking for additional options.
When you are looking for a location for your new business, a real-estate agent is going to be your biggest asset. Not only are these agents familiar with property listings, but they can also use their expertise to ensure you're paired with a location best suited for your brand.