Whether your weekend side hustle has evolved into a full-time gig, or you are in the process of planning your next venture, moving your small business into a dedicated space (that’s not your garage or home office) can help you reach your entrepreneurial goals more effectively. That said, it’s not without its special considerations.
Managing a physical location is a big responsibility, with plenty of costs and logistics to think about.
So how can you know if expanding your business to brick-and-mortar will be the right move in the long run? In this article, we’ll have a look at some of the key considerations
Matching Your Business Model
Arguably the most important thing to consider when thinking about expanding your small business into a bricks-and-mortar location is if you need to. It sounds simple, but at the end of the day, not all businesses can be an at-home, DIY operation (at least not forever).
For instance, if you’ve been selling baked goods at local markets and community events but want to scale up your business, it will probably make more sense to have a dedicated storefront where you’ll have more room to create products, host customers, and start building out your brand.
Where Do You Want to Open Up Shop?
Location is another important detail in finding a space for your business. If you have a particular part of town that you’re dead set on opening up shop in, it’s essential to assess the local demand for your type of product or services before you commit.
Starting a Restaurant?
On that note, having a permanent business space is usually the right path for anyone looking to start a restaurant or any type of food service operation. Along with attracting new customers, a great restaurant space also ensures you’re able to provide the best service, prepare high-quality dishes, and tap into the high-opportunity delivery market. Having a formal brick-and-mortar location is also critical for ensuring you have the necessary licenses and permits to run your eatery.
Searching for crash course insights on restaurants and commercial real estate in Ontario? Check out these other Carve blogs.
- How Restaurant Real Estate in Canada is Evolving
- Key Terms in Restaurant Real Estate You Should Know
- What’s the Difference Between Commercial & Residential Transactions?
What if You Don’t Need the Space?
Having a physical business space is exciting and often fits into every small business owner’s entrepreneurial dreams – but it is always necessary.
Perhaps you’ve been running an online clothing store from your home and haven’t run into any issues with storage, shipping, or everyday operations. Making the jump to a physical retail space will not only bulk up your overhead costs, but it will also add more responsibility to your plate such as greeting customers, hiring more employees, paying bills, and admin work.
All that said, if your business isn’t quite ready yet, or you don’t absolutely need the space, it could make more sense to hold off for now.
Do You Have the Budget?
Along with considering the practical elements of having a physical space for your small business, it’s also important to be aware of the costs. Whether you buy a place or lease one, real estate will be one of your largest upfront and recurring expenses. You’ll also need to factor in add-on costs like utilities, insurance, furniture, equipment, and any renovations or changes you may wish to make to the space.
With that in mind, it’s a good idea to consult with your business’s financial advisor or accountant before getting too far ahead in your plans. They’ll help you conduct a thorough cost analysis to ensure that the potential increase in revenue justifies the spending.
Thinking about opening a restaurant? Check out these other blog posts for helpful tips!
- How to Sort Through Restaurant Listings
- What to Look For When Choosing a Restaurant Space
- How to Hire Restaurant Staff
How to Find the Right Spot
The most efficient way to find a business space that matches your criteria is to work with real estate agents who specialize in the commercial market – like us, Carve Real Estate. The most efficient way to find a business or commercial space that matches your criteria is to work with a restaurant real estate agent – like us, Carve Real Estate.
As leading commercial real estate professionals, we’re tuned into Ontario’s most exciting, high-potential markets. Regardless of what your current or future small business looks like, we can help you find the ideal space for it.
Looking for the perfect place to take your business to the next level? We can help! Send us an email or give us a ring at 416-618-0054 to get in touch.
