Move Into Retail?
15/10/08 13:17 Filed in: Q & A
Moving a Home based Business into a Retail Location
Q. I'm at a crossroads in my business. After operating from my basement studio for 4 years, I have not yet turned a decent profit because I keep investing in more things like Yellow Pages advertising, coupon advertising, a van lease, and now a web site. Now, I’ve found the perfect location for a retail store. The landlord is willing to work with me to move my business into this location, believing, as I do, that this is a prime location for a gift basket business. But, should I be turning a positive profit on my home based business before I consider moving into a retail location.
A. This is a hard question. With my first gift delivery business, like you, I often found myself looking at empty storefronts in the neighborhood. Eventually I rented a tiny space next to a busy, trendy restaurant. Business boomed. Six months after moving into the tiny space, I moved around the corner to a much larger shop. A year after that I sold the business and made a good profit. Taking that step into retail worked for me and it might work for you. But, I would wait until your business is earning enough to comfortably stash some cash before you move. Then, you’ll have money to invest in more inventory, spruce up the shop, advertise your new location, and feel more comfortable making the big plunge.
Q. I'm at a crossroads in my business. After operating from my basement studio for 4 years, I have not yet turned a decent profit because I keep investing in more things like Yellow Pages advertising, coupon advertising, a van lease, and now a web site. Now, I’ve found the perfect location for a retail store. The landlord is willing to work with me to move my business into this location, believing, as I do, that this is a prime location for a gift basket business. But, should I be turning a positive profit on my home based business before I consider moving into a retail location.
A. This is a hard question. With my first gift delivery business, like you, I often found myself looking at empty storefronts in the neighborhood. Eventually I rented a tiny space next to a busy, trendy restaurant. Business boomed. Six months after moving into the tiny space, I moved around the corner to a much larger shop. A year after that I sold the business and made a good profit. Taking that step into retail worked for me and it might work for you. But, I would wait until your business is earning enough to comfortably stash some cash before you move. Then, you’ll have money to invest in more inventory, spruce up the shop, advertise your new location, and feel more comfortable making the big plunge.