An Economical Shop: Share Shop Space to Increase your Customer Traffic and Minimize Costs
We all know strip malls rent out different store spaces to various shops, but what about sharing a single space? Becoming a popular trend following the recession of 2008, young businesses have been learning the value of roommates.
Complimentary Competitors: Join forces and double your customer base
Though competitive in making numbers, two complimentary stores can easily take advantage of one another’s products through a symbiotic subletting relationship. Take a clothing store and shoe shop. The clothing store doesn’t sell shoes while the shoe store doesn’t sell clothes, two things often purchased together. Combined, they increase each other’s traffic while driving down rent.
Hot Spot: Capitalize on a prime spot for a fraction of the normal rent
Prime real estate is not cheap. Houses, shops and even gas stations pay top dollar to exist in accessible, highly trafficked areas. If you are just starting out, chances are you make enough to keep going but not enough to truly afford expansion. Larger stores, like Wal-Mart, Target and Albertson’s, have all begun leasing out storefront locations to names that help drive traffic. After all, once the customer is in the store itself, there’s a higher likelihood they will purchase something.
Seasonal Switches: Defy the low season and excel in high season
Whether your product is seasonal or not, subletting to a store that plays off of your busy times and slow times aids in padding out the numbers. Say, for instance, you sell beach gear. During the winter, foot traffic will no doubt slow dramatically. In this case, look for a partner that maintains constant business year round or otherwise brings in a lot of people during your low season. While you still won’t be breaking records, you’ll at least have a guaranteed revenue stream from customers drawn in by your neighbor.
Saving Money: Minimize risk through smart budget decisions
Perhaps the main reason to rent out space in your location is to simply drive down rent. Having a partner split the costs means you have a way to invest in other things beyond floor space. Even if the shop you rent space out to isn’t related to your business, putting up a cheap wall partition is far cheaper than paying elevated rent.