by Matt Pasquinilli and Dennis Shaefer
Finding a location will require a lot of research. We have known many business owners, both in our industry and other industries, who don’t do any research. Instead, they drive by an empty storefront or commercial building and fall in love with the idea of having their business there. They call a broker, sign on the line, and only realize months later that it is not ideal for their type of business or the customers they want to serve. While you might be fortunate and find a great location that happens to be near your house or on the driving route to your current day job, if you don’t do some research and take the following tips into account, you might be making success in your business an impossible or needlessly difficult task.
Tip 8 – Target Demographics
You should identify the market you want to serve and study the demographic makeup of that area. Consider household income, number of children per household, nature of surrounding businesses, average real estate prices and turnover rates, existing recreational facilities, recent trends in population and business, etc. This information can be obtained on-line from the US Census Bureau and other more specific sources. This will help you to map the prime spots for your first location.
Tip 9 – Careful Consideration of Real Estate
Consider the fact that commercial real estate lease rates can be affected by a number of influences. Sometimes a “deal” isn’t really a deal at all. Remember that you will be serving families with children and most classes will be held after work hours. What happens to the neighborhood after dark? Will parking be a problem? Is there room for growth?
Tip 10 – Do Your Research
Talk to neighboring business owners and tenants who lease from the same landlord you are considering. Shop around for the best commercial realtor. Some landlords are willing to let you do your own renovation if the space isn’t ideal for your purpose. You can negotiate several free months of rent in exchange for doing the work yourself. Be sure to check local zoning regulations first.
Matt Pasquinilli is the Executive Director of the non profit Asian Arts Center Taekwondo School in Dayton, Ohio. Dennis Shaefer is a profesional martial artist living in Oakwood, Ohio.