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How to spend less with business location

By Mariana Iwakura

The economic crisis brought at least one good thing to entrepreneurs: the possibility of negotiation of occupation costs with the owner of the property. However, you need to know how and with whom you can plead better values. Some of the owners, in fact, have been more flexible. They are real estate owners or malls administrators who have felt the crisis and have seen their tenants close their doors. These people are more open to negotiating values so as not to leave the business inactive.

On the other hand, there are also the owners of the property who have not suffered so much or prefer to keep prices high, even if the properties are vacant. Real estate and regions need to be analyzed to understand the extent to which a discount can be negotiated. If there is such an opening, be aware of the following topics.Street LocationsEntrepreneurs looking for business locations on the street can save on the rent, the value of the location itself and the lack of payment. "The discount may be proportional to the retirement that the company will make in the place, that is, how much the entrepreneur will add to the equity. For instance, an improvement in the storefront", says Ana Paula Tozzi, CEO of AGR Consultores.Sales CenterIf you are interested in setting up a store in specialized streets, such as those that gather furniture stores or wedding dresses, keep an eye on the number of closed outlets. "If the number of stores decreases, so does the frequency and flow of people. The chance of return is lower in these situations", says Ana Paula.Mall LocationsThe aspect to be negotiated with the mall is the grease payment (that can be slaughtered) and the rent. This can be reduced to its minimum value for a time, and variable rent (proportional to store sales) is charged after a number of months. When talking with the manager, take the information to substantiate the discount request, such as a business plan and sales projection. "Those days are past, when the relationship between mall and shopkeeper was not transparent. The mall may buckle, but it will require the return of the rent you failed to pay in the beginning", says Ana Paula.Focus on your caseIt is not because the owner of the neighboring store got a better value than you will too. “The mall does not give rent discount to everyone. Some segments were more affected by the crisis, but a lot of people are selling well", says Marcos Hirai, managing partner of consulting GS&BGH. "The discount will be made on a case by case basis, due to the situation of the shopkeeper. The mall administrator knows who is most affected”, he says.

New malls vs. Well-established ones

According to Hirai, malls with more than four years of activity, considered as well-established, have a lower vacancy. "In these places, the input values are still high", he says. In the new ones, there are more empty spaces. "These malls were launched when consumption was already cooling down. It can be a time of great opportunity for incoming shopkeepers", says Hirai.Care upon salesBefore dealing with a location in a high vacancy and good discount mall, make a critical analysis. "Do not fall into the temptation to start a business in a place that will not generate income", says Ana Paula. "It needs to be a good location in the medium term. If the region is not well and is not expected to improve, ward off", she says.Ask the franchisor for helpFranchisees should receive support and guidance, when choosing the location. The franchisor may even take the negotiation front with the owner of the property or the manager of the mall. "He has a set of shops to negotiate and gets better conditions", says Hirai.

Source: http://revistapegn.globo.com/Franquias/noticia/2017/02/como-gastar-menos-com-o-ponto-comercial.html

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