Jump into the pond, or go into the sea?

[csepulveda85]

Ok so i have a online business that's going ok, but i plan to open a storefront.
I been searching for the right store for about 6 months now but they are just so expensive!
I really don't want to get into a high paying high traffic store for my first time because im nervous that i may be ahead of myself. I have been looking for a small storefront and finally found one!
BUT the foot traffic is nothing...
The rent is very cheap and they include utilities. Its right around the block from where i live and the owner is willing to do a short term lease since it is my first time....

My question is .. Can a store in a "no traffic" area make it? or am i setting my self up for failure?

There is no way i can be in a high traffic area with out spending a lot for rent.. And for my first time renting a store.. I don't want to get into that financial burden without having the experience that i feel the Small store can give me....

My Business is a fashion and jewelry boutique ... Next to that store is a bar, liquor store, restaurant/ deli/ corner store/ cleaners and day care...

can i make it? what advice can you give me?

[vangogh]

Location, location, locations. That's the mantra of real estate. I understand not wanting to invest so much, but you have to think of it in terms of the investment. Which location will ultimately provide more for your business. If the lower cost storefront leads to no business, while the higher cost storefront leads to a lot of business you'd be much better off with the higher cost storefront.

Could you possibly negotiate a shorter lease with a high traffic store? Could you get space that you could potentially share with someone who would also share in the costs?

Foot traffic isn't the only way to get people in your store, though it certainly helps and I do understand wanting more experience before making the larger commitment. Keep in mind if you choose the storefront with less traffic you're probably going to have to spend more money marketing the business to bring people in. Try to think about what additional costs that might mean in order to make a better comparison between the different storefronts.

However, since you'd like to get some experience and you can get a short term lease on the low cost place I think it would be ok to go that route. Do understand that without traffic it's going to be more difficult, not impossible, but more difficult. Even if you don't succeed in that location you aren't committing yourself long term and it will give you a chance to learn a lot. The more trafficked area is likely the better option in the long run, but there's no reason why you can't start smaller, do your best and see how it goes, learn what you can, and when the short term lease is coming to end decide again, this time with more experience.


am i setting my self up for failure?

As long as you learn something to do better the next time, you don't fail. Failure is part of success. Most people who succeed fail along the road to success and often more than once. Don't be afraid to fail. Make the best decision you can and do your best to make it work. Hopefully it does work and work well, but if it doesn't learn from the experience. Think about why things didn't work out and what you would do differently if you could start again. Then start again doing those things.

[Steve B]

Van Gogh is being polite. A poor location for a retail business is definitely setting yourself up for failure. Knowing that you're going to fail and then "learn from it" is a terrible plan. Of course, we learn from mistakes, but you don't want to make a mistake on purpose! There's a reason the rent is higher in the high traffic areas. A fashion and jewelry place next to a bar and liquor stores - c'mon, of course that's a bad situation!

[Harold Mansfield]

I know nothing about fashion and don't have a brick and mortar, but I know a little about locations and "bar, liquor store, restaurant/ deli/ corner store/ cleaners" is not where you want to be as an unknown retailer. I would think you'd want to be around complimenting businesses and boutiques or somewhere with a related anchor store.

Also, I may have tried selling my products with local retailers in clothing and accessories first, before tackling your own store. Especially if you can't get a decent location.

[huggytree]

clothing and jewelry stores arent hidden in odd area's...they are always in well seen locations

you need to spend $ to make money.....if you cant charge enough to cover your stores costs for the proper location either its all together bad business model or you need to up your prices to cover things....

if you dont have the $$ it may be best to save up for a few years....maybe this recession will be over by then too...

i wouldnt take the bad location just to save a buck

[mark2media]

I started a furniture company 7 years ago (sold it last year) and only had an online store for the first year. My partner said he could not work out of his home so we got a storefront. It almost killed our business. The business you have is capable of doing millions of dollars in business online. There are several I can think of off the top of my head that already do it.

Why take on the extra overhead? Instead take the additional money you would spend in rent, utilities, and employees, etc. and invest it in online marketing. If done correctly, the marketing dollars should yield a return greater than the money spent on a location and you won't be tied into a long-term lease.

[vangogh]

The business you have is capable of doing millions of dollars in business online.

I didn't mention it above, but I was thinking the same thing. Why not start online. You can gain business experience without most of the expense and in time and assuming the money is coming in, the more expensive storefront may be within the budget.