The 3 C's Of Real Estate (Start Here)
We have all heard the 3 L's of real estate...You guessed it....Location, Location...
What if I told you that the 3 L's were dead? The largest fault with the 3 L's is that, while they tell you "Location is Important," they don't mention anything about "how to find and negotiate a great location for your business."
If you are like most business owners, one of the most important variables you look at when looking for a location is price. If you are looking to open your first storefront, or getting ready to open store 20, I will assure you that there are factors FAR more important than rent...especially when you are just setting out to find a spot.
Enter the 3 C's of real estate.
The 3 C's are 3 of the most important factors that successful businesses look at when trying to find a killer location. So lets cut to the chase and talk about them, shall we?
C NUMBER 1 - Your CUSTOMER
Yes...you have heard me say it before. Some people call it your "avatar" and we call it your Ideal Customer. You have to understand WHO your customer is, and by customer, we are talking about 2 main factors:
1. "WHO IS SPENDING MONEY ON YOUR PRODUCT OR SERVICE, and even one better, who is spending the most money?" You can spend alot of time targeting people who are never going to buy from you. This can be painful.
2. More importantly than who is spending money, who do YOU LIKE SPENDING TIME WITH AND SERVING? I have met many a business owner who built their business based on people that they didnt enjoy working with. No amount of money can buy happiness.
Your ideal customer should be some gentle blend of these two things.
C NUMBER 2 - CONVENIENCE
Have you ever been opening an email on your phone and had it lag, or maybe had a movie freeze on you? This can be pretty frustrating. Why? Because in todays world, TIME is our most scarce resource. Picking a location thats convenient for your customer is a key step in getting a great location. Convenience can include a few different things:
Time of Day - When are people likely to visit you? You want to be where your customer is, and open for business when they are ready to visit you.
Distance from Where They Live - How far will people drive to see you? Sometimes you are better off being close to one area, as opposed to convenient to many. That way you can choose to either completely dominate a specific area, and maybe even open another location in a different market later to serve more customers.
Parking and Access - Parking and Access are often overlooked. How hard is it for people to get in and out of your location? How far away do they have to park? Believe it or not, these things play a bigger role than you know.
C NUMBER 3 - CO-TENANCY
Ah, the "C" that nobody talks about. Co-Tenancy. What is co-tenancy? To put it simply, good cotenancy is...
"Putting your business near other businesses who serve your customer before they need you."
Where are your customers shopping already? What stores are they going to? What restaurants are they eating at? Not only are you putting yourself RIGHT in front of their face, but your storefront and sign are acting as a free billboard for you.
Imagine putting these into your strategy when you are looking for a retail or office space. Would you pay a little more rent for a space that ticked all these boxes? If you are looking for a new location for your business, use these 3 C's as a guide. Already have a location or getting ready to sign a lease on a space? Use these as a measuring tool to rate your current space.
Questions, as always, shoot me an email!