From Storage to Store: How to Navigate Upgrading to a Physical Retail Property

There is an exciting time in a business’s life when we upgrade from our modest home surroundings to an actual store. For those in the business of retail, that moment when you realise you don’t have to operate out of your kitchen or back room anymore can feel like validation, but upgrading to a newer retail property is a complex transition, so here are key considerations to help you navigate the process successfully:

Prepare for the Transition Properly

We need to minimise business disruption, and there are so many things we should ensure are in place. It’s not just going to result in a successful physical move, but it also reduces your stress.

Create a detailed moving timeline so you can ensure everything is in place at the right time, whether it’s the right removals company to help you gradually move things or notifying the utilities company, as well as getting the business insurance for the new location. Additionally, look at communicating the changes to your customers and suppliers.

Ultimately, you want to hit the ground running, so if the suppliers are not aware of your move, or you notified them months ago and haven’t received a response, don’t assume that they know you are going to a new location. This is why a gradual transition with proper planning and preparation can make all the difference, as it will maintain customer loyalty and keep the business momentum going.

Focus on Location

Foot traffic is one of those massive things that newer businesses seldom evaluate. When you’re operating out of your home, anywhere else can seem like an amazing opportunity for foot traffic, but you’ve got to maximise those demographics.

You may have been selling things out of your home and people have been coming to you, but now the stakes are higher, which means you’ve got to evaluate those demographics. Who are the right people that will come near your business?

Also, think about the proximity to other complementary businesses and those little things that can be major obstacles for your customers, for example, parking availability and accessibility. The right location is going to drive more customers to your store and increase sales, but if you choose the wrong location, you could end up struggling during the first few months (or even years) where you are.

Assess the Financial Implications

Of course, moving to a commercial space will mean potentially higher costs, so you have to evaluate the overall outgoings. The potential revenue increase from the new location can be exciting for you. However, what does this mean in terms of your overall maintenance, utilities, rent, and insurance costs? This is why detailed financial projections are critical so you can ensure the business is economically viable.

Before you make the move, you should also clearly define your objectives. You need to ensure you run a smoother business, but when you understand your priorities, it will guide your property search as well as your decision-making. By assessing these components, you will be able to successfully navigate the upgrade from a home-based retail business to that commercial property you’ve been envisioning for so long.