So you’ve decided to open up a physical business. Perhaps you are bringing your online store to life after much success. Or maybe you are opening another brick-and-mortar location in a different part of the city, state, or country. For some, this may be your first store and you are doing a double launch both in the physical and online space.
One thing is clear, though: a brick-and-mortar location would benefit your business in the long run. In fact, brick-and-mortar sales account for 94% of the total retail sales, according to Bizain. This is quite a number, especially when you consider the cost of online retail.
Whatever the situation, it is important that you understand the clear steps on how to open a brick-and-mortar location. The last thing you would want is for your business to violate a certain code or permit because you were unaware of the proper protocols. In this guide, we’re going through everything you need to open a physical business, step by step. By the end of this piece, you’ll be well equipped with the knowledge and resources necessary to make your dream location a reality.
Let’s get started!
1. Choose a Location
If you’ve successfully created a business plan, you have an idea of how much money you are going to need to open up your store. You also have a plan for where you want to open it and when. You know what services and/or products you will offer and what the store will be called.
Now the next step is putting it all into action.
This is when you conduct some research and decide on a location for your store. Use the help of a realtor if you are less skilled in real estate so that nothing falls through the cracks.
There are several things one should consider when deciding on a location for a brick-and-mortar location, including:
- Zoning and codes: Some cities and states have zoning restrictions that limit what type of business can operate in certain areas. For example, some areas may be reserved for retail while others are reserved for food services. You’ll need to talk to your realtor about the zoning restrictions that may affect your business.
- Visibility: Is your store in a prime location that makes it easily accessible to both pedestrians and vehicles? Is there a lot of foot traffic in the area? Can one see it from the road?
- Demographics: Your location should be in an area that serves your target demographic. It should fit their age group and price range.
- Infrastructure: How is the physical building? How old is it? What is its condition? Does it require a lot of fixing up? Are there potential violations in the structure? Be sure that the location can support the needs of your store by capacity, layout, and other demands of your business.
- Competition: Are there similar businesses in the area? Are they strong competitors? You don’t want to settle down in a location where the market is oversaturated.
2. Sign a Commercial Lease
So you’ve picked out the perfect spot for your store and now it is time to sign papers. You’ll likely be asked to sign a commercial lease. They’re more complicated than residential leases and usually require a longer term (3 or more years).
What exactly is a commercial lease? A commercial lease defines what you and the landlord are responsible for in terms of maintenance and upkeep. It makes the property yours under certain defined responsibilities.
3. Obtain a Sales License
Now it’s time to make it all official. Most states require that you obtain a sales license for retail stores, as well as an Employee Identification Number (EIN).
If you’re planning to offer a service, like a nail salon or barbershop, you’ll need to obtain the certifications and licenses that your state requires. In some cases, you may need to take a certification course in order to get approval.
4. Order Equipment and Supplies
You have your business plan, your financing, your storefront, and your license. Now you need the supplies to actually run your business. Refer to your business plan to have a good understanding of the kinds of equipment you need and how much you can afford.
In addition to the equipment and supplies, you’ll need a store sign. This sign should be big and prominent for the front of your business. Ideally, it should light up so that visitors can see your business at night, especially if it is open in the evenings. You should also have a repair person handy in case something faulty happens.
“All business signs eventually need to be repaired,” says Bakers’ Signs, a Houston sign company. “Constant exposure to the elements, not to mention the occasional storm, will cause many elements of your business sign to degrade or become damaged over time.”
Make sure your sign is protected — it may make the difference between getting more customers or not.
