Opening a Retail Business? What to Know Before You Search For a Space
Unlocking the doors to your new retail space is an exhilarating journey. As a commercial real estate broker specializing in the leasing and sales of retail properties in Denver, my mission is to equip you with the precise tools that consistently propel my clients toward success.
In the realm of commercial real estate, "retail" properties encompass a diverse range, including restaurant spaces, salons, fitness and wellness studios, storefronts, and more.
While finding the right location is crucial, the true key to a successful opening lies within your business itself. It's essential to evaluate your business's history, current standing, and future aspirations. This decision should seamlessly align with your overall business goals and growth strategy.
Every broker approaches client service differently. From my experience, well-informed clients armed with necessary tools and guidance stand a better chance of achieving their objectives.
My passion lies in empowering clients to realize their goals and unlock the doors to their dreams. I'm committed to providing you with the information, resources, and unwavering support needed to make informed decisions at every step of the journey.
Together, we can craft a strategic plan that not only aligns with your vision for the future but also ensures a successful launch, giving you the runway to thrive and flourish.
Fostering Entrepreneurial Vision
Envisioning the future phases of your business's evolution breathes life into your venture. Having once walked the path of aspiring to open a Denver storefront, I intimately understand the fervor fueling these ambitions.
My foray into commercial real estate sprouted from my own journey as a prospective tenant seeking a home for my business, The Wine Ship. As a creative soul, I poured countless hours into crafting floor plans, scrutinizing finishes, and honing branding. I traversed neighborhoods with the curiosity of an undercover investigator, dissecting the competition. While these endeavors felt instinctual and I relished the process, they didn't quite steer me to my destination.
Like many clients I now serve, I had yet to acquire the knowledge and experience requisite for securing a lease. I learned the hard way that I lacked crucial insights (and funds!). I was spinning my wheels investing valuable time in tasks more relevant to later stages of the process. In essence, I fixated on the wrong priorities at the wrong juncture.
Today, the resources and guidance I offer my clients stem from personal odyssey and a perspective forged by walking in their shoes. I've poured my energy into mastering every facet of this industry while continuing to embrace an unconventional approach.
To steer you clear of pitfalls, here's a comprehensive overview of the key considerations to ponder before embarking on your search for the perfect property. If you get overwhelmed, don’t worry — I’m waiting for you at the end.
Considerations before you start the search for a space
Business Structure
Have you created an LLC or another legal entity for your business?
Are you the sole owner, or do you have partners? If so, you have an operating agreement in place?
Have you set up business bank accounts and started to establish credit with financial institutions?
How many people will you have on site working each day? How much will they be paid and how is the employment structured?
Does your business have any specialized zoning requirements?
Do you require any special licenses or permits to operate your business?
Brand Identity
How does your brand story serve and relate to your targeted customer base?
Who will create the logos, brand standards, color palette, marketing materials, social media, and web presence needed to reach your audience?
Location and Targeted Customer Base
What is your business's ideal neighborhood(s) or submarket(s)
Who do you serve, and where are they located?
How close are your nearest competitors? Does this help or hinder your model?
Vision for Your Space
What size and layout are ideal for your space?
Will you invest in a buildout or search for a second-generation space?
What furniture, fixtures, and equipment will you need? Do these require specialized systems such as upgraded power, restaurant infrastructure (hood and grease trap), or plumbing?
Have you researched architects and designers to help bring your vision to life?
Pricing for Products/Services
How much will you charge for your products and/or services?
How much volume will you need to sell to cover your expenses?
Can your customer base afford what you offer? More importantly, do they NEED what you offer?
How do your offerings compare with the competition?
What inventory do you need for opening day and beyond?
Where do your products and supplies come from? How long will they take to arrive?
Timeline
How soon do you want to open your doors?
How long will it take to secure financing for your endeavor and where will the funds come from?
How long will construction, permitting, licensing, staffing, and marketing take?
How long do you plan to stay in your new location?
Budget and Financing
How are you going to fund your project? Are you using savings, investor capital, business loans, or other funding solutions?
Do you have documentation of these financial commitments from their sources such as a pre-approval letter from your bank or investors?
Does the dollar amount in your business bank account match the amounts in your startup budget and operating pro forma? Do these documents even exist yet?
Are you prepared to personally guarantee your lease? Do you understand what this entails?
Are you prepared to submit your credit report to your new landlord?
Feeling overwhelmed? Take a deep breath; there's no need to panic.
Let's dispel any notion that this article aims to induce fear. Its purpose is straightforward: to equip you with essential insights before embarking on the journey of property hunting. In today's fiercely competitive Denver retail market, finding the right space demands meticulous preparation. Tempting though it is, diving headfirst into property tours isn't the initial step.
Focusing on identifying a space before addressing approximately 60% of the crucial items outlined above poses significant challenges. While you may find a space you like quickly, doing so without adequate preparation increases the risk of losing out to a more prepared tenant.
If you are someone who already has most of this covered, you've already surpassed the readiness of 95% of tenant prospects I encounter.
Even the most prepared business owners can benefit from expert guidance to ensure their strategies are primed for success. In virtually every case, there's groundwork to be laid before initiating the property search. So, it's time to take action.
If the prospect of opening a new retail storefront resonates with you, don't hesitate to reach out. Time waits for no one, and once we dive into the deal flow, the pace quickens.
As a seasoned retail specialist, I can determine our readiness for market after a single conversation. If we're not quite there yet, I'll arm you with the information and resources necessary to bridge the gap. When you are ready, let's hit the streets together. I'm prepared to guide you every step of the way.
Call or text me now at 970 618 6257. - Montana
