A few pointers on finding a place to operate a business

Editor’s note: Michelle Stockman works with Little Rock-based Arkansas Capital Corp. to promote entrepreneurship development around the state. Stockman earned a bachelor’s degree from Loyola University-Chicago in communications and fine arts, and earned a master’s in entrepreneurship from Western Carolina University. Her thoughts on business success appear each week on The City Wire.

Businesses come in all shapes and sizes, start in a wide variety of places and display the creativity of the entrepreneur in many ways. What may seem like an easy task often becomes a nightmare for the entrepreneur if proper caution is not take. Finding the space to call the business home has many options and many potential problems for the entrepreneur.

The obvious first step for the entrepreneur is to decide on the needs of the business. How much square feet, what type of business, where should be the business be located, what are some of the infrastructure needs for the business? Would it be beneficial for the business to purchase land and build, should it lease a space or can it be operated from home?

Once the entrepreneur has developed a shopping list of needs for the business, then the entrepreneur can begin to search for a commercial real estate agent or strike out on their own to look for space. Like shopping for a home, searching for the ideal location to house your business may take some time yet fits like glove when the location feels right.

Once the location is found, entrepreneurs should enter into negotiations either with the land/building owner or lease agent. All things in business are negotiable, so the entrepreneur needs to stay strong. The other side is working hard to get as much as they can. They will say or do things that will put the fear of losing the location into the business owner, because they think they have you in a vulnerable position. However, the business depends on the entrepreneur to settle on the right terms and conditions for the business.

Once the lease or purchase contracts are drawn up, the business owner needs to take the necessary time to thoroughly read through the legal documents. Understand what the terms are for both parties. If this is a lease, understand how long the lease is and what is needed to exit the lease. Additionally, if the landlord of the property does not execute leases, understand your legal rights before making any agreements. I would also recommend the business owner not to enter a building without a written contract/lease on the space.

In purchasing land and/or the building, the business owner needs to engage in the proper due diligence on the property before signing purchase agreements. Where a business lives is another important step to consider for the health and viability of the business. The more you understand your needs and your rights, the more likely your business will thrive in its location.

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Stockman can be reached at [email protected]