How to find business premises effectively? The premises have an area suitable for use, good location, good price… Learn about quick ways to find business premises after the Covid pandemic with AequitasAudit.com.
The current situation of leasing business premises
In fact, the prolonged Covid pandemic has caused our country’s economy to fall into crisis. Many businesses were forced to temporarily close for a long time. Even many businesses that are unable to maintain operations are forced to dissolve. So a lot of business space is paid out. Rental signs appear densely. Many coffee shops, milk tea shops, restaurants, fashion stores, etc. race to pay the ground. After days of social distancing because I couldn’t stand it.
Most of the owners of rental properties now no longer shout the same price as before. They actively reduced prices by 30-40% compared to the same period last year. Fewer constraints on lease term or payment terms. However, finding tenants is not easy. Because it is not known when the epidemic will really end, the economy will operate normally again. Therefore, there will be two trends taking place in renting and leasing space:
- The first trend: The lessor actively reduces the price. Because we see that our tenants are having difficulties in doing business.
- The second trend: Tenants of the premises offer to reduce the rent, negotiate to lower the price by applying pressure. For example, giving an opinion on the payment of land.
These negotiations will continue until both sides are satisfied. In the current situation, businesses or landlords who have premises for rent need to actively reduce prices to keep customers. On the other hand, the fact that many people return the rented premises is an opportunity for customers to find a better new business location with a relatively reasonable rental price.
How to find effective business premises
Finding the right business premises is one of the dilemmas. Because it determines the success or failure of the business.
Usually, the cost of renting space accounts for a large part of the total cost of doing business. And depending on the location, the rental price will vary. The premises in central locations will be higher than those in alleys.
The premises can be located on the ground floor of high-rise buildings, large buildings. Or the apartment complex, the central road, the road in the alley…
Notes on how to find business premises
- Determine where you’re headed
- Location: Crowded or quiet place?
- Convenient traffic: Is heavy traffic hindering your business? The space you need is near the bus station, many means of transport?
- Area and size of premises suitable for your business. Depending on the product or service, choose the appropriate area
- Convenience where you need it: near schools, hospitals, buildings, companies….
- Infrastructure: parking areas, security systems in buildings…
At the same time, you can go to reputable websites and forums to search for a favorable position. Or through some intermediary brokers to find good premises.
After searching for a suitable space, survey whether the location has met the initial needs you set out or not?
Next, learn carefully the laws, regulations, and terms of the contract. As well as the binding, interests between you and the owner of the premises.
What should a business contract clarify?
- How long will the rental period be?
- What is the floor area?
- How long will it take to rent the space?
- If rent increases, what percentage increase per year will the limit be?
- If I reclaim the rental space before the contract ends, how should I compensate for the damage?
In addition, do not forget to learn more about the terms and forecast costs in advance. Also research in advance how to handle such situations.
Note that you must not bypass local business regulations. You need to be familiar with local laws, regulations, and business requirements. Typical: roadside, sidewalk, parking, advertising area, operating time…
Screening related factors to choose a business premises
In order to invest and open a business, regardless of the product or field, it is necessary to have an investment. It’s not just about spending time and effort, but also financially. Therefore, it is extremely important to choose a business premises.
As you can see, it is not easy to choose a suitable and convenient location for business. For traders, especially beginners, this will also be much more difficult. And to filter, you need to collect a lot of information meticulously. For example, you are looking for premises for business Oriflame, Cafe, restaurant… So what is the information?
Filter demographic information
In a nutshell, screening demographic information is what you need to find out about the population situation in the area. The purpose is to see what class is the main demographic here? Many men or women, old or young? From there, determine the essential needs. And importantly, what percentage of the total population here are your potential customers? Are the products you intend to sell your business in line with market trends? As well as does it meet the needs of the people here or not?
Filter business product information
As mentioned above, you need to understand, in order to have a correlation between your customers and the goods you trade, you also need to know product information. Because it is not possible to sell youthful dresses in an area where the majority of elderly people live. On the contrary, you choose clothing products for the elderly when the area is mainly young households with many young people. Remember, the business product needs to match the demographic situation. Only then, your future sales can reach the threshold as set out target.
Filter information about nearby competitors
- One is that this area does not yet have anyone selling the item you are looking to do business with. You will be the one to put the first brick in it and succeed easily. However, before considering that, you also need to find out why there is no such product in this area. Is it really suitable for the demographics living in this area?
- Second, everything seems to be complete here, but don’t be discouraged, analyze your opponents. Analysis is the step to help you make improvements over the opponent. Explore and consider the strengths and weaknesses of rival businesses. From there, draw useful lessons for yourself. At the same time, you will come up with a more perfect business strategy.
Hopefully, the above sharing will help you better understand how to find effective business premises. Take advantage of this post-pandemic time to find the right premises for your business orientation! Don’t forget to visit AequitasAudit.com to learn more about the site search experience. At the same time, there are more suggestions on the best places to rent business premises. Good luck.
Phuong Dung – Content Writer
- What should you pay attention to when renting business premises?
- Rent the premises carefully to avoid losing money
- Experience buying land in Da Nang – useful advice…
- What are the advantages and disadvantages of buying a group house?
- 3 Years, 300 Blog Posts, 212,985 Visitors and Counting
- JDB 051 – “I Can’t Do This Anymore!” – How to Love Being a Lawyer or Find Your Path Out of the Law
- Finding a room to share student accommodation: The story never gets old