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    Renting a Store Front
    What percent of your income should go to the rent of a storefront? How do I know if it's a smart move and if I can afford it in the long run?


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    I think that would depend.

    Are you already running a business and now you're wanting to move into a brick and mortar store? If so, then you will already have some numbers you can work from.

    If you're opening up a brand new store, then I would recommend researching the average income that's coming from nearby local stores in the same area and see what it would take in order for you to produce similar numbers.


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    Hi, I would say that the income percentage you should pay for your storefront is somewhere between 20 to 30 percent. I made the huge mistake of paying $1495 per month for my storefront and my income was only $3000 per mth. So I basically was paying 50% of my income for rent. Boy what a mistake!!!

    After all of the expenses to run a store such as hydro, advertising, bank fees, salaries, restocking, and misc. expenses I could not make ends meet. There was no money left to give me a salary and I had no savings for this problem I encountered. My rent for the store was way to high for the income I generated. I would say the cheaper you can find a storefront the better. I live in a large city and there are still some storefronts for around $700 - $800, but they can be hard to find. I guess it depends on much space you need.

    You may also want to share with someone and that would make the cost go down by 50%. I used to work in a building where 3 ladies shared an office space and they each paid only $200 per month. It was right on the Main Street and it worked out well for them. If it's viable you may want to consider working from out of your home or basement. But whatever you do, make sure you don't over pay for the storefront or you could end up filing bankruptcy.


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    I agree completely! I have had to close a store because of the rent being too high! It was my 1st store and I guess you live and learn but it doesn't really make it ok so try to do it right the 1st time! I would say rent should be no more than 20-25% of your monthly income. Remember to keep your income expectations realistic and you should be able to plan accordingly.


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    We have were required to close up a retail store as a result of hire becoming too much! It had been my personal 1st retail store as well as I assume your home is as well as study but it really doesn't really help it become okay so make an effort to do it right the 1st time! I would point out hire should be no more than 20-25% of this regular monthly earnings. Make sure you maintain your earnings objectives realistic and you will be able to plan accordingly.


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    Have you considered sharing store space with another business owner? This will greatly lessen your rent expense. But I think not all business is applicable to this type of set-up. In our community I've seen a coffee shop owner sharing store space with internet shop owner. There's even a tattoo parlor owner teaming up with a restaurant owner. I guess a lot of planning and consideration is needed but it's an option.


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    Quote Originally Posted by eppie View Post
    Have you considered sharing store space with another business owner? This will greatly lessen your rent expense. But I think not all business is applicable to this type of set-up. In our community I've seen a coffee shop owner sharing store space with internet shop owner. There's even a tattoo parlor owner teaming up with a restaurant owner. I guess a lot of planning and consideration is needed but it's an option.
    You're right! My mom is actually doing something very similar where she has a shop in the front and someone else has one in the back. She's lucky that there are actually separate rooms, but it's in the same building because it was a remodeled fast food building. Because they technically only have one set of utilities, though, then that cuts down the cost for both of them, too.


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    I guess you just have to workout some numbers to see if it will viable depending on how much you are making as a business. Every move should be carefully analysed to see if it possible to make the move or not.


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    If the rent is cheap and that you can produce more profit that paying for the rent. Maybe 10% will do. And profit is the other 90%, that's a good percentage for me. As much as possible rent should be free or you should own your own place.


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    I think it depends on what you're doing and what your potential for income is. I would look around; some businesses do well in out-of-the-way locations, and around here, you can rent smaller office buildings with utilities and such included for a surprisingly low rate.


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