You’ve just conceived an idea for your new business. You know why product you want to sell, you have employees lined up. All that’s left is finding an adequate building to be able to advertise and sell your entire product line. retail space isn’t easy to come by because of how many businesses succeed and fail each year. The one’s that tend to exceed have an office leasing and the ability to advertise their product in a way that makes them separate from their competition.
You need to look for space that able to provide you enough shelf space to advertise the product as well as enough space for your customers to conveniently and comfortably walk through the aisles to view them. Not a lot of people like to be crowded together trying to find the product they were searching for. They become claustrophobic and feel a need to get out of the store before buying anything. The importance in the amount of space you allow in unparallel to the amount inventory you have displayed. It won’t matter how much product you have out if everyone’s fleeing the store because of how uncomfortable they are.
The amount of space you decide to buy is of course proportionate to the amount of money you want to spend. If you spend all of your money on the largest space available with nothing to fall back on in case business is slow at first, you will find yourself closing the store down before it even began and your dream lost. No business started out a success. If you believe the product you’re selling will sell immediately than ask yourself, “How will people know about the product”?
The internet is vast but there are millions of other businesses trying to get their product out there and selling just like you. You can advertise in your local area, but that’s a very small portion considering the amount of people living in the United States. What you’re going to be relying is a marketing campaign savvy to those consumers you wish to target and service that carries over word of mouth. People can get a certain product anywhere, but they come to your store for the service and the atmosphere. Don’t forget this crucial fact when shopping for retail space.
As business begins to grow you will find yourself needing more space to hold the amount of customers foaming for your product. It is at this time where you don’t need to worry so much about how much space you have and how much it will cost because of how much money you’ve made. Expanding your business practice elsewhere may be a more beneficial venture than expanding your space. You can make a little more profit with small chains around the nation than a few large retail store.
About the author: Jason Ausmus is a web content producer for Innuity. For more information regarding retail spaceor office leasing, please visit Royal Commercial.
Archive for the ‘commercial real estate’ Category
How You Can Properly Select Your Office Space
Tuesday, December 1st, 2009How Much Space Do You Need for Your Business to Function Efficiently?
Wednesday, November 25th, 2009Product is in your store, but the presentation, organization and clutter are getting in the way of consumers finding what they need. They suffer from visual overload and shut down as a shopper. What can you, as a space-challenged retailer, do to remedy this type of situation? Read on for some tips with retail space and commercial real estate.
EVALUATE YOUR INVENTORY
A visual floor audit of your products and a ledger pad will be a good start. Walk each department and take a survey of what products are in each department that are actually current. Identify by the fact that if the customer cannot self-shop an item without staff help, then it doesn’t need to be on the showroom floor and can go to a space in the backroom or behind the counter. You can also make a list of parts and accessories that are out of season. Remember, you are trying to free up space and rid your store of clutter for items that need to sell right now.
Your floor space fills up quickly in the ATV department. If ATV is a year-round hot pick for you but if you are still working to find space for the summer riding season (which you need to stock and sell in about 120 days), my suggestion is to cut the ATV area down in size by displaying one of each item. You might load up a unit with lots of goodies and show the items that way. That will save space and be a great selling aid. If you happen to sell that one, accessorize another one. I am sure the vendors will be happy to sell you more ATV stuff. When ATV is in-season (fall in most parts of the U.S.) expand the department again to offer multiples and self-shopping of accessories.
SCRUTINIZE YOUR FIXTURES
Most of the time, space is not the only issue. It is the fixture choice which is not the most efficient for the product type. For example, every store needs staple goods like oils, lubes, chemicals and cleaners. Are they placed where they need to be, or are they housed on some fixture that cannot be relocated? Consider moving them onto one of my favorite fixtures in the industry: the “LiL Joe” by Rock Eagle. This little workhorse not only holds 1,200 lbs. of weight, but its retail footprint is only 36″ and it is round and low. You can see over this fixture, and it offers 360 degrees of self-shopping. Fill the shelves and back stock the rest. You can restock as needed. Your consumers do not have to see that you house 1,000 bottles of oil; they just need to find one.
Another space saver is to acquire small “H-Unit” fixtures for apparel and parts and accessories. This type of fixture allows four-sided shopping in a footprint that generally is about 5′ long and 3′ wide. By incorporating shelves along with your slat pegs for packaged items, you can display some of the boxed items that may look awkward on your walls. For apparel, using hangrails and straight outs, and adding topper shelves on each side, gives a home to add on sale accessories like folded casual wear, ball caps, and other small items. You can show a helmet to match the riding gear in the same color way presentation being shown. This helps package related items and offer “good product adjacency.” This is a consumer desired expectation.
LIMIT YOUR SELECTIONS
One game plan in a small retail floor plan is to exercise some restraint in your product offerings. No one has enough space to carry all vendor and label brands, in all styles. Buyers have to make choices on the number of style selections, colors and sizes they can purchase. Another consideration is, will the product be open for reoccurring orders, or is it a special or limited run? You certainly need to offer today’s savvy consumers some choices. Even the motorcycle riding community entails many personalities and body types. To better use your space, clean house on your style offerings. Decide what is core and what stays, and select the styles that you need to get rid of through creative marketing, markdowns, clearance, Internet sales, etc.
You can accomplish a clean, organized, uncluttered and professional retail image and by doing so, increase your inventory turns at the same time — even in a smaller retail environment.
About the author: Jason Ausmus is a web content producer for Innuity. For more information regarding commercial real estateor retail space, visit Royal Commercial
Plan Ahead for Expansion When Your Business Becomes a Success
Thursday, November 19th, 2009Businesses move around a lot. Whether for expansion or downsizing, businesses can move a whole floor up in a building due to remodeling or take over an entire block of a downtown street. Besides your bottom line, have you considered the outcome of where you decide to relocate or the results regarding your remodeling decisions? There are several issues that will come up and should come up along the way regarding an office move or remodel.
Whether you are looking to lease or remodel one office space, a large piece of corporate real estate, or just a small retail space, you might want to consider a few things. The decisions you make today, will no doubt affect your business tomorrow.
5 Things Your Business Should Remember When Moving to a New Space
• Does your new office location leave room for expansion?
• Do you plan to hire or let go employees in the future? Depending on what your long term goals are, could affect the space you will need in the future.
• Is location really important for your business? Otherwise, you could pay less for office space in a less obvious location.
• Could you save money by merely getting new cubicles and desks and a fresh coat of paint and carpet inside of signing a new lease elsewhere?
• Never underestimate parking spaces. Whether for employees or for customers, besides great location, without parking, how can people come to your business?
Know that what ever big or small plans you decide to make, an office move is time consuming, disruptive and sometimes expensive. Do your research and you may find that a corporate real estate agent you are looking into also knows movers and possibly a good deal on used office furniture. Looking for the right agencies out there that are experienced and fast at moving offices and have remodeling connections will save you and your company money as well as headache in the long run.
About the author: Jason Ausmus is a web content producer for Innuity. For more information regarding corporate real estate, or office space, go to Royal Commercial
Find Out Where You Need to Setup Your Retail Store
Thursday, November 12th, 2009You have designed a great product, you have a business license and all your ducks are in a row. Besides your online store, you need to get a retail space to store inventory as well as sell your product. Before you make that move to rent a retail space, there is a lot to know. Commercial real estate will help you find the location that will best sell your products and make you a greater profit.
Before You Open up Your Retail Space- Do Your Homework
Before you sign the dotted line on just any retail space, make sure you do your homework or better yet, hire someone to do the homework for you! Think realistically, if you over-commit, you could be in over your head before you even open the doors.
• Make a list. What size space do you think you will need to start with currently?
• How much space will you need in the future? What is your business’s projected growth?
Think About Retail Space Location
Many people say that location is everything. Before you settle on one particular location make sure you research each retail space you are thinking about. Here are a few things to look for:
• What is amount of car and foot traffic in front of each retail space?
• Find out who the previous renter was, did they do any unseen damage to the place? Why did they leave?
• Does the rent match up with other retail spaces in the area?
• Where is your closest competitor? If they are going to be a neighbor, perhaps it’s not the ideal location
Think About Your Audience- Where are They Located?
• Does your location get local area traffic or just tourists or both? Depending on your product, you may want to be in a neighborhood or near a busy tourist destination.
Depending on Your Product, Could Your Share Space?
• If you have large furniture to sell, you won’t likely want to share your space with anyone else, but if you are looking to sell your handmade scarves, you may want to look into a smaller retail space, like a kiosk or a shared space with someone else who is looking to share.
Research Restrictions Before it’s Too Late
Some retail spaces say what you can and cannot do in regards to signs, flower boxes and other décor. Be sure and find out what types of restrictions come with the retail space. Other things to consider:
• Is there ample parking? Or bus service near your business?
• Are you allowed to have a large sign above your business?
• What is the maximum occupancy?
If all this seems like way to much to think about, while you are trying to work on other aspects of your business, you can hire a commercial real estate agent who helps small businesses find what they are looking for in regards to retail space. Hiring a professional to help you find a retail space could save you money in the long run- they know where to look, what to avoid and how to talk terms. Plus, with someone who knows about commercial property, once you have decided on a place, you’ll have a connection to painters, movers and handy men once you close on a deal- and what is not to like about that?
About the author: Jason Ausmus is a web content producer for Innuity. For more information regardingretail space or commercial real estatego to Royal Commercial
Building a Steady Flow for Your Business
Thursday, November 5th, 2009As we search for the right spot for our business, we must take into consideration how that space will affect the usability of your customers. The variants are between office space and retail space. As we look into it we notice that the ability to find the right amount of space is what makes a business succeed or fail.
Retail space needs the most attention when it comes to the amount of space that you’ll need for your business. Thing of yourself as a customer walking through a retail store; would you hate it if there wasn’t enough space for two or three people to walk comfortably side by side? A wave of claustrophobia can come over anyone which will cause them to leave your store immediately.
The amount of shelf space you need is something you also need to take into consideration. With every retail store there is overflow if an item isn’t selling well, or is selling very well. Where do you intend to put this product if there isn’t enough space to hold it all? You’re building up this business to be a working machine, and clutter becomes a lose cog blocking the workings.
Office space is a little bit different. Space is still something you need to take into consideration for guests and the eventual expansion of employees. Leaving room for expansion means that you don’t have to move again when you need to hire on more employees.
In terms of office space we also need to take into consideration the personal spaces of our employees. A happy employee is one that is able to express themselves in every aspect of their life. The desks that employees are given will more often then not contain photos family, posters, and anything else that means something to them. Remember that they are with you for 8 hours out of their day.
The differences between office and retail space are vast. We need to make sure we know the right amount of space needed for our business to keep our customers happy and coming back, as well as our employees. After all, the employees are what make your company run smoothly and the ability to give them the freedom that they need is what keeps a business running.
About the author: Jason Ausmus is a web content producer for Innuity. For more information regarding office space or retail space, visit Royal Commercial
Looking For New Office Space Leaves 5 Key Ideas to Consider
Monday, November 2nd, 2009As we start a business, looking for an office that has the amount of space we need to be productive is crucial. We must be cautious, looking for only the amount of space we need to function properly. There is no reason to pay more for what you aren’t going to use.
• Finding an Office: If you are a starting business, note how much office space you’ll need now and eventually. You will need space to put any files that will acquire for your business. You will need file cabinets where your files will be store. Plenty of desks for current and new employees that are soon to come. Will you have a waiting room where clients can sit? What type of furniture will you have?
• Visualization: It’s important that your business has plenty of exposure to people driving by your office. What kind of marketing will you use to catch their eye? How will you design your office so people who visit will think that you are professional and someone they want to do business with?
• Corporate Offices: When your company reaches a point where it can have a corporate office, corporate real estate will become a key factor in finding corporate headquarters. Do you want these offices to be near your current office? When looking in corporate real estate, be sure that we take the first two steps into account. They apply to any office you plan to open; corporate or commercial.
• Leave Room to Expand: Moving your offices is costly. Make sure that the first office you have leaves plenty of room to expand. As you become more successful, more people will want your services. Make sure you have enough office space for new employees to help with your newly acquired work load. The same goes for your corporate real estate. The employees you already retain know your business in and out. They will be the ones training your new employees.
• Relax: Moving into a new office or upgrading to a bigger office is stressful. Not only are you trying to manage the time and money into movie, you are also trying to keep the business running. Stress in this situation is inevitable, but there are ways to prevent. There are plenty of companies out there whose focus is helping you with these kinds of decision. Unnecessary stress is just that.
Remember all of these elements when moving your new business. Knowing how much office space you’ll need for your furniture and employees is important. Your offices and corporate real estate need to look and feel professional. Leave room to expand your business. Having to move your business because you do not have enough space for the two employees you just hired isn’t worth it. The business you could lose during the movie on top of what it already costs to move is just silly.
About the author: Jason Ausmus is a web content producer for Innuity. For more information regarding office space or corporate real estate, look to Royal Commercial
A Look Into the World of Commercial Real Estate
Monday, November 2nd, 2009While the current economic climate might not make many run to the real estate market for their top career choice, for some, it can be a lucrative business. If you’ve decided to enter the real estate business consider the varying specialties that might help you to succeed. You may want to start as a comemrcial real estate agent, someone who specializes in selling commercial real estate. You may also consider becoming an appraiser, the person who determines the value of the home being bought or sold; a broker, who assists buyers with the actual transaction; developer, a person who improves land by adding or replacing or fixing up buildings; property management, someone who manages the property for an owner. With all these choices when becoming a real estate agent you are bound to find something that will be the perfect fit.
When deciding whether or not you’d like to do commercial or residential real estate consider these major differences. Obviously, commercial real estate agent will focus around office space or other types of commercial properties that are mostly income producing. Most homes will simply be by their owners. Commercial real estate can encompass leasing office space, owning an apartment complex or selling real property to name a few of the areas that you might be working in.
It’s also important to note that the paperwork involved is very different between the two areas of real estate. Residential deals are given much more consumer protection than commercial deals. Disclosures common to residential are not necessarily required. Commercial real estate buyers are going to need to ask about zoning laws, whether or not the area is suitable for their business, among other business decisions. As a real estate agent you’re going to need to have the skills necessary to meet different needs for the consumer.
No matter the type of real estate you decide to specialize in, each requires a different level of skill and a different level of knowledge. The type of person you are going to be dealing with in residential real estate is going to be quite different than the person you might deal with in a commercial transaction. Consider the types of customers you would most like to work with when comparing the two. Consider the types of goals you have and the types of needs you like to meet for others. It can be exciting helping the first time homebuyer discover and purchase the home of their dreams. Does this get you more passionate than helping the savvy business owner find the perfect space for leasing, a space that can help them meet their business needs. While there are two different goals, helping people meet those goals can be very rewarding.
Committing to becoming a residential real estate agent or a commercial real estate agent can be a big step. Determining that you want to go into real estate can be a difficult decision, especially when the current real estate climate is shaky. However, in the end, it can be a very rewarding career choice and a very lucrative one, depending on the type of real estate agent you become and the area in which you live. If you don’t think commercial or residential real estate is the right move then consider the other types of specialties that might be just the right fit. You have to spend a lot of time in your career so make sure that you are making a choice that is going to be in your best interest for the long term.
About the author: Jason Ausmus is a web content producer for Innuity. For more information regardingcomemrcial real estate agent or comemrcial real estate go to Royal Commercial
Learn How Office Space Can Hurt or Help You
Tuesday, October 13th, 2009Buying or leasing office space is a much different situation than buying or leasing a home. Over the past couple years, corporate real estate was doing really well as businesses were booming and filling up their space quickly. However, with the economy now businesses are consolidating and getting rid of space, so things have changed significantly.
For people managing corporate real estate or handling office leasing they are going to be in for much tougher negotiations. Rental rates are at a much lower rate than they were a few years ago and companies may be less inclined to sign a long-term contract. Companies are doing everything they can to explore cost-cutting measures. Even the simple office supplies that weren’t a big deal to purchase in the past may now need management approval.
This type of leasing climate is especially good for those companies who know they are going to weather this economic downturn just fine. Yes, there are a few out there still making money. These companies can take advantage of the lower rates and the many incentives that are being provided. If they can take advantage of a longer term lease they may end up saving a lot of money. Tenants are looking for the best deal when they look for office space and landlords are really going to the extra mile to lock them in.
Lease negotiations are in the tenant’s court right now. With discounted rent or even free rent for a period of time, this is a good time to be searching for office space. Landlords that are struggling to find tenants may offer a variety of great deals such as paying for the space to be renovated or providing the options for additional build-outs on the property. Further, landlords are offering much more flexibility with the term of the lease. In good markets, landlords might be especially stringent when it comes to lease terms and getting out of a lease early. However, now they are much more willing to talk about ending leases early, which may be a cost savings to tenants paying for unnecessary space. Tenants are also setting leases with shorter renewal options to allow for better positioning when the market does improve. While they may be cutting costs now, most companies are looking forward to a day when they can get back to normal, hire more employees and re-fill up that space they just vacated.
Even though the economy has many wishing for jobs, grumbling about unemployment or afraid for the days to come, it also holds a lot of cost savings measures of which business should take advantage. With the better lease rates, more flexibility in negotiation and the incredible incentives on the table, it is a no brainer for companies to take advantage and save some money. We won’t always be in a recession; companies won’t always be struggling to fill their office space. However, right now, for both landlords and tenants it is a very different market. And, while tomorrow may change things for the better. Today, companies should stop and look at the many ways they can make choices today to improve their financial picture tomorrow, especially when it comes to their office space.
About the Author: Rebecca Beckett is a freelance writer for Innuity http://www.innuity.com. If you would like more information about office space or corporate real estate go to Royal Commercial
Save Money and Time With The Right Amount of Office Space
Thursday, October 8th, 2009The office space that you work in every day is one of the largest expenses for your company. One way to control this cost is to shop around and utilize some simple negotiating skills to get the best office leasing option. If you can take some time to get yourself into a good lease you could save your company enough money to make a very big difference.
No office lease is standard so you need to negotiate with each one. The term of the lease is one of the first concessions when you are negotiating. Your needs may change over time so keep this in mind when thinking about how long you want to stay in the same location. Also think about how much space your office has available. Make sure that you have enough room to grow if necessary. You may also want to consider getting the option to renew your rent at a fixed predetermined price. Think about the time you will need in the space but also about the time you may want when your lease is up.
Look into what the landlord charges for the extras. Some of these items may be maintenance, HVAC, general operating costs, repairs, improvements or replacements. Some leases may require that you return the office to the condition it was in when you first moved in. It could be to your benefit to get a cap on the amount you are charged for all the extras because they can add up rather quickly. Improvements in the space may also require their buyoff so make sure that you understand what the lease says regarding their approval to change the space.
Unfortunately, you can’t generally negotiate a lease with a fixed rate over a long period of time. Usually there are annual increases based on a specific percentage. Perhaps you can negotiate how many years it is before this kicks in or think about asking if you can get a cap on the amount of the increase or maybe a set amount each year rather than a percentage.
Think also about the flexibility you may need in your space if you think you may need to undergo a merger, reorganization or subletting. There are so many things that could change in the years to come and it is important to consider all the options when signing your company up for a new lease. This can really make a difference in the future.
Negotiation will be the key to success when getting locked into a lease for your company. Take the time to study up on some of the areas that you can ask questions. Study the fine print so that you know all the options you have in the building and with your office space. If you are locked into a lease for 5-years you never know what might happen in that time. Plan ahead – project where you think you might be in that amount of time. Look into how you might grow and change so that you can predict the best lease possible. Don’t be afraid to ask for what you want – you might just get it.
About the Author: About the author: Jason Ausmus is a web content producer for Innuity. For more information regarding office space or office leasing go to Royal Commercial
Office Leasing & Equipment Leasing – Doing What is Best For Your Business
Tuesday, September 29th, 2009These days retail retail space is pretty easy to find as office leasing prices are low and buildings are open on every corner. However, if your company is like most, they tend not to lease their office equipment. They simply buy something new when they need it and then use it until it breaks. And even worse, they will use it until it breaks – even if it is worn down and barely operable. Recently, a problem the U. S. government has faced has brought some of the problems with this method into light.
Massive catastrophes, such as large earthquakes, 9/11 or hurricane Katrina, require a lot of organizations to respond at once. Have you ever really stopped to consider how all these companies coordinate their joint efforts? Well, sadly, there isn’t a central hub that handles all the coordination; there isn’t even a communication method that exists between all the different organizations. While each organization may have radios to communicate with one another, they can’t communicate outside of their individual organizations. This makes any type of large scale operation very difficult.
But, this is the government right? They must have better equipment that they can use. I mean consider the technology that we have these days and the immense amount of opportunity that is available. Funny thing is the U.S. government does not currently lease their equipment; they use it until it runs out. Unfortunately this means that they are using equipment not up to the standard needed to be versatile enough to be used across so many communication platforms. The hardware and power needed to create such a system is vast. This is exactly why the government has been looking into the option of leasing equipment. It would make it much easier to switch out one piece of equipment for something nicer and newer.
Much like the companies many of us work for, it can be often very difficult to get new equipment in the first place, unless it is something that deeply and immediately affects the bottom line. With equipment leasing, it is a much easier process because the money is already being spent and the item can simply be upgraded. And, with the tight economy, companies are more frugal than ever. With product leasing you are paying for the use of the product rather than the actual product.
Perhaps it won’t make sense for every company or even every piece of large equipment. But, when it comes to things like the U.S Governments communication problems, it might be just the way to go. Who knows, but it would be awfully nice to get the latest and greatest release of a product when it is just out on the shelves. Instead of using outdated equipment, computers that run slow or items that are long overdue for replacement, a company could probably increase its productivity with the right equipment. While each company can evaluate such a program and decide if it is worth it, it certainly is something to consider.
About the Author: Rebecca Beckett is a freelance writer for Innuity. If you would like more information about retail space or office leasing go to Royal Commercial