Once they’ve chosen a place to operate out of, most business owners consider the location immutable. There are good reasons for business owners to keep an open mind though. Here are several things that business owners should keep in mind regarding your location even years into running your business:
Rent can be negotiable
Keep a watch on the neighborhood. If your neighborhood has empty storefronts and buildings, you may be able to use that to negotiate your rent down, or to increase your space for cheap if you’re doing well.
Another good negotiating tactic, if you’re struggling, is to open your books and show your landlord your financial statements. Telling someone isn’t nearly as good as showing them, and if you can make an argument that a rent reduction would increase your chance of making the business work, that’s very persuasive.
Finally, if something unexpected happens, like the ART (Albuquerque Rapid Transit) project here in Albuquerque, consider asking for a limited time reduction in your rent to help you through the tough period.
Moving is always an option
Don’t let nostalgia for an old location hurt your business. You might get a better price somewhere else, or it might be worth it to be closer to your suppliers or customers. If you try a new location and it doesn’t work out, don’t feel compelled to stay there either.
Subletting too much space
If your terms allow, you might consider filling space that you know will otherwise be empty with temporary tenants. Make sure that you’re compatible; pet grooming and food preparation probably can’t work in the same space. This can give you the flexibility to take a space that is too big for you right now but you expect to grow into in the relatively near future.
Managing inventory
Don’t let inventory sit on your shelves forever, especially if you’re paying for storage space. Keep a watch on what moves and what doesn’t move, and consider dropping the price, donating to charity, or just disposing of things that aren’t going to sell soon. Freeing up space for things that will sell and reducing those storage costs can definitely affect your business positively.