Monday, December 10, 2007

Location, Location, Location

We have discussed the importance of the actual location of your business in previous posts. High traffic areas that have convenient access are very helpful. However, a suitable location can often cost you quite a bit in rent.

Rent prices may range from $50 to over $500 a month. The price you pay will all depend upon the arrangement that you make with your landowner. Usually, the better the location, the higher the rent. As always, shop around to get your best price. When discussing a location of interest with the owner, make sure you point out the fact that you will be attracting more potential customers onto his property for him as well. This is a fact that you need to use to your advantage. Owners of small, local strip malls or other locally owned businesses will see the advantage of having your stand set up at their location.

At our busiest location, we paid $200 a month from May to October. Our landlord did not ask for rent during the winter months when we were closed. In reality, we would have paid $300 a month year round if needed. We had great business and were located right in the middle of town. Nearby there were nine baseball fields, a community college, neighborhoods, shopping centers, and restaurants. The daily traffic count on the highway in front of our business was about 28,000 vehicles in a 24 hour period. At this particular location, we averaged $300 to $500 dollars in sales a day.

Whatever arrangements you work out with your landlord, be certain to have a contract or agreement in writing. If possible, agree to a fixed number years for your lease. Try to get at least a one year lease with the option to renew for one to two years. This option will give you the opportunity to get a feel for the location before committing to a longer term lease. Before you sign an agreement, make sure that you can adequately cover the monthly amount based on your projected sales volume. Do your homework, research, and then move forward with confidence! If you should ever have any questions regarding space rental or other concessions related business questions, please feel free to post your question here or contact us through our website at

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