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    I think nowadays, renting a store would only be a smart move if it were absolutely necessary for the business, such as needing a pickup place for customers or having to have the space for consultations and browsing. Otherwise, if it can be done online, I would definitely just keep it to the online market as much as possible. It would be an unnecessary expense if you end up incurring expenses for it such as electricity and maintenance that are completely avoidable in the online market.


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    It all depends, really. I definitely agree that your overhead costs are lower when you operate solely online.


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    I think rent should not eat up more that 25% of your income. But it would also depend if you're just starting out and still have to build up your reputation. You would have to sacrifice giving up a bigger portion to rent if that's the case. As long as you think your location has high foot traffic and your business has a lot of potential in attracting more customers in the future, then you can allocate as much as 40% of your income for the first few months. Then review your books after six months. If you see an increase in sales then your rent-income proportion should be quite balanced by then.


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    Quote Originally Posted by tspires2 View Post
    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.
    Very Informative post Thanks.


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    What percentage of your revenue is going to the book of a storefront? Just how do I know if it's an intelligent move of course, if I can afford it in the long haul?


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    Real estate business is biggest investment and profit able business


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    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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    Quote Originally Posted by daleo717 View Post
    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.
    agree with you


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    Quote Originally Posted by KennethCBragg View Post
    Real estate business is biggest investment and profit able business
    But also need a huge capital.


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