Another business formation task: Choosing the right retail space

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Another business formation task: Choosing the right retail space

When Illinois entrepreneurs decide to start a new retail venture, many of them will need a location from which to operate. Choosing a retail space is not as easy as finding an empty space in a strip mall, however. Numerous factors go into making the decision, which makes this an important task during the business formation process.

A new company’s business plan may provide clues regarding the type of space and location that may best suit a particular retail business. A good place to start is by determining the amount of space and the layout needed. This could help determine whether to search for space in a mall, shopping center or near pedestrian-laden areas such as in the downtown area.

After determining the type of space, the location in an Illinois city or town is next. It would not make much sense to choose a retail location too far from the customer base. It would also not be a good idea to be in a space too close to a competitor, especially as a new business. Other issues such as zoning, improvements, safety and lease terms also require careful consideration.

Even seasoned retail entrepreneurs may need assistance finding the right retail location, especially in an unfamiliar or new area. It takes time to find the place with the most favorable lease terms that is also close to the right customer base. This type of business formation decision that could greatly influence whether a new venture succeeds. Without as complete an understanding as possible of all of the relevant factors, the business could end up in the wrong place for a variety of reasons.

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