Avoid these common mistakes to ensure your next real-estate choice is the right one.
Free Book Preview: Brand Renegades
Discover how two entrepreneurs used unconventional business strategies to turn their own startup right into a multimillion-dollar firm.
06 21, 2021 6 min look at
Opinions indicated by Entrepreneur contributors are their own.
As an proprietor of a franchise, a single of the biggest choices you have to create is finding the right real estate for your businesses. Successful franchisees are usually constantly looking for ways to scale and get new locations. People have heard the cliché — location, location, location as it pertains to property. It’s mentioned that these are three most important factors whenever it comes to purchasing real estate. The truth is that the location of your business is usually just one of the many factors a franchise owner should think about when looking for true estate. That being said, the location of your business is important, so be sure not to overlook these typical mistakes franchisees encounter when looking for that perfect piece of real estate.
one. History can repeat by itself
The history of a location can be very telling plus extremely helpful in selecting real estate. For example , when you are looking just for a new location intended for your pizza shop and you come across an item of real estate that appears to be a great location for your business, be sure to research the history of the thing that was there just before. You may find that even though the region appears to be perfect, there were five additional pizza shops in that will same location that failed. That information doesn't necessarily mean that yours can fail too, but this definitely warrants a much deeper investigation into that area before you make a decision.
2. Size issues
Another error many franchisees make when looking for real estate is mis-calculating the dimension of the location they will need for their business. Larger isn’t necessarily better. Every single penny counts when constructing a business, so making the right choices with regards to any acquisition is important. Just because you’re getting the deal of the lifetime upon a piece of genuine estate doesn't mean it can the right choice. Sometimes you’ll find real-estate with a great cost for each square footage, so the inclination is to consider advantage of the price and go bigger. This particular can be a great opportunity, or it may be an unnecessary decision. Be sure to do your due diligence plus run your numbers on all of the properties you encounter. Regardless of how good the offer may look on paper, if you're purchasing real-estate with more square footage than what you in fact need, the extra region must convert into profitable space. If not, it might be not actually an offer for “your” business.
Join Our Free Affiliate Marketing Training Course. This Makes $100-$500 Daily
3. Building versus buying
The larger the business, the greater options you have with regard to scaling and expanding your own franchise locations. When choosing whether to build the new location or purchase an existing structure, it is important to examine your numbers. On the surface, building a new place may seem to be the more expensive route, yet that's not always the particular case. There are various instances exactly where the amount of work required to convert an current structure into what a person require for your franchise location far exceeds the amount it would cost in order to simply build it. Several franchises have a very particular blueprint that they must follow; that will may limit your real-estate options. Be sure in order to verify which the cost per square foot of the particular necessary buildout isn’t a lot more than the cost for each square footage for complete construction. In some areas, these two numbers might be very similar, which usually actually allows you more flexibility in choosing your real-estate and location options. This can be useful if you’re forced in order to follow a particular formula or real-estate guideline regarding your franchise.
4. Brand identity is important
You must select real estate that will certainly allow you to showcase a cohesive and identifiable image. That being stated, not all businesses require the same style associated with branding. For example, if you're a franchisee associated with a major restaurant chain, then it’s imperative the fact that real estate you choose be recognizable to that will established brand. A lot of major franchises will provide franchisees with an outline of building specifications, rules plus possibly even approved areas for real estate. However even smaller franchises need to follow these guidelines and be sure that they continue a recognizable vision for their own business across all of their locations. This indicates that even though your particular franchise allows for different ones of real estate, a person still must ensure the areas you choose permit you to make use of the appropriate signage or color scheme to showcase your brand identity.
5. Advertising matters
Sometimes the real estate you pick is not because important as the advertising you choose. As a franchisee, you may select the perfect piece of real property in an awesome region and still have that business location fail. This happens when you place as well much concentrate on the real estate and not enough around the marketing. The genuine estate you chose can be extremely important, but it’s complemented by the marketing and advertising you do for your business and its locations. Regardless of what real-estate decision you’ve produced, you need to produce a marketing and advertising plan for that location. As the real-estate coach, I suggest that the moment you’ve produced a choice for the business location, you immediately begin working on a marketing and advertising plan. This way, while you're preparing the brand new real estate for your own business, you're also planning the region for your arrival and creating exposure to get your new franchise location.
There are many aspects that go into choosing the particular perfect piece of actual estate for the business plus franchise locations. However, since with every business choice, data and information are usually king. Be sure in order to possess a business plan prior to you even begin searching for real estate. An excellent business plan will provide you with the information plus possibly even the specs needed to assist you within choosing the perfect property for your franchise place.