An interesting option for new start-ups and something that can give a great return on investment is opening a business in a shopping centre. This reflects the fact that this type of complex maintains a constant flow of relevant consumers.
However, for a commercial initiative of this kind to succeed, it is essential to gain information on the following aspects: market, selecting the centre, consumption habits of potential customers, paperwork, financing and growth strategies and consolidation. This is crucial because blindly undertaking a project of this scale can devalue your investment.
To successfully implement your business in a shopping centre, put into practice the following recommendations:
– Define your goal. What is your goal? Succeeding in the big leagues, where you will face more intense competition and have to invest more money – or start with intermediate links, which requires an investment of smaller rivals and there will be less income due.
– Perform market research. Once you’ve defined your goal, you must know thoroughly the chosen site. It is no longer enough to know how many people will walk through, but to identify what kind of people too, what kind of offers exhibits the complex and what need can or will solve your business in that place, or if you will create one. Thus, it is essential that you evaluate the site’s features, customer profile and know kiosks, and local islands that are already up in their place.
– Know your potential competition. Display initiative and visit the places you are interested in for a week for example and at different times. Observe the behaviour of users with respect to established businesses. Identify trademarks displayed on the site; detect who your rivals are and how prestigious they are. This is an important indicator of what you will face, because if you stumble upon a top-end business, your chances of success are reduced – unless your concept is so original and powerful enough, that it overcomes the expectation.
– Investigate costs. Weekly costs can range according to the location, the time of year that you wish to trade and floor space, but the average rents are from between £300 – £700 per week.
If instead, you want a kiosk or an island to trade from, investment costs and monthly rent per square metre are decreased, but are a function of the total occupation of the allocated space.
Moreover, you should not forget the expenses for maintenance; typically represent 10 to 20% of the monthly rent, payable additionally.
– Define the ideal business model needed to transform the market need that you detected or created in a conceptual project. You must select the right business twist, the ideal space and give identity to your initiative, one that differentiates you from the competition, but that makes it seem alien to commercial ecosystem of the centre.
– Create a solid business project to use all the information gathered to develop your business plan.. At this point, you should be clear about your strengths, weaknesses, threats and opportunities, as well as capital you need to implement your idea.
– Comply with the necessary formalities with the managers of the shopping centre and complete the paperwork related to admission to the leasing of space.
– Implement strategies from the beginning. As soon as you start your business, you need to engage your employees to your business and differentiate your initiative further, which is only possible with added value. What do we mean? Promote your offer with services or additional benefits.