postheadericon Choosing Your Business Location – Tips to help you out

Thinking about the points to consider when choosing your business space!Without order of priority, here are the elements that are fundamental to check before any installation:

The concept

It is of the utmost importance to have carefully thought about the concept of the activity that you want to develop by answering the 5 questions: What? How? Or with whom? When? Answering these clearly-asked questions on a piece of paper often helps to avoid a lot of disappointments.

Geographical location

It must correspond to the activity that one wants to exercise in the local. It should be noted that any activity does not necessarily require the search for a location N ° 1 sometimes unnecessarily expensive.

The surface of the places

Check the area of ​​the room by making a distinction between the parts intended for sale and those generally devoted to the accessory of the operation. This audit will assess whether the rent we will have to pay is in line with the market price.

The commercial lease

Whether you have to resume or sign it, except to have legal skills, it is recommended that you surround yourself with the advice of qualified professionals before committing. Some leases contain a multitude of pitfalls that should be avoided if you do not want to jeopardize your business. It is also useful to pay attention to the amount of rent that generally should not be more than 8 to 12% of the turnover achieved or hoped for.

Financial elements

In addition to the rent, it will be necessary to check the balance sheets of the company that you want to take back. It will be necessary to be informed of the balance sheet of the last three years and the monthly turnover of the current year. The careful study of these balance sheets will make it possible to see if the company is on an upward or downward slope. Here again, the help of a professional seems necessary.

The forecast balance sheet

Whether or not a case is created or resumed, it is necessary to draw up a forecast balance sheet, the figures of which will be as close as possible to the reality of the operation. Depending on your financial contribution, it will indicate whether you are able to apply for a loan from a bank and will determine the results you can expect from your operation.

Conclusion

The recovery or the creation of a business is a path of obstacles that can be easily overcome if we took the care to think carefully beforehand and have surrounded with sound advice.

 

One Response to “Choosing Your Business Location – Tips to help you out”

Leave a Reply

You must be logged in to post a comment.