When you decide to start your own business, the first thought that comes to mind is: Should I go online or do I need a physical location? The choice will entirely depend on your business type and strategy. If you are planning to expand and hire a team to tackle tasks, even if you are not directly facing customers, looking for a commercial unit is a must.
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We all know the right business location is a crucial decision for commercial tenants.
Your business location directly impacts foot traffic, accessibility, and the overall image of the company. After all, being visible and easy to reach can support your growth and your position in the community. But, tenants often find themselves compromising on various fronts to secure a space that aligns with their business goals.
So, what do you need to compromise on and is it worth taking the risk? Truth be told, you are unlikely to find the perfect location that ticks all the boxes, especially as a new business. Your budget will play a significant role in your decision, and once you start considering costs, you may need to look into less premium units. Hence compromising is necessary.
Facility challenges
When selecting a dream location, commercial tenants may discover that the chosen commercial unit lacks essential facilities. Typically, this is part of the description. But this might include the absence of amenities crucial for daily operations, such as a bathroom, for example.
What can you do when your unit lacks essential facilities? You can discuss it with your landlord. They may agree to have some facilities installed, but typically the cost will be shared with the tenant or fall entirely on the tenant.
In some cases, tenants may even need to shoulder the cost of installing bathroom utilities, including an adoptable pumping station until the unit can be connected to a network. This is a significant investment.
Layout Changes and Alterations
The need for tailored spaces often leads tenants to compromise on layout changes within the commercial unit.
Adding partition walls or making other alterations for a more functional workspace may be necessary. As a tenant, you are allowed to make non-structural changes to the unit. It’s important to understand that significant alterations will require approval from the landlord, introducing an additional layer of negotiation and compromise.
However, tenants must be prepared to cover the expenses associated with these modifications.
Why Compromises Are Worth It
Despite the challenges and compromises, securing the right business location and lease terms can be a game-changer for entrepreneurs. The increased visibility and accessibility that come with a prime location can significantly boost your business’s success.
Additionally, a well-negotiated lease can provide stability and favourable terms, making the compromises worthwhile in the long run.
Long-Term Stability and Favorable Lease Terms
Securing the right lease is important. You may need to make compromises, but the lease should provide the stability you need for long-term success. This includes reasonable rent and a landlord willing to collaborate on essential improvements.
In conclusion, while compromises are inevitable when securing a dream business location, the long-term benefits often outweigh the initial challenges. Commercial tenants must carefully evaluate the potential of a location, negotiate favourable lease terms, and consider the overall impact on their business growth.
But once you do, you can better position yourself for success in your chosen location.