To maintain a sustainable business network, a small size business entrepreneur needs
to ensure low establishing and recurring costs.
One way to achieve this for most small business entrepreneurs is by renting a space
as opposed to buying a property. In addition, depending on the business, renting
out a kiosk or operating a cart could further lower the operating costs of the new
business. This will also decrease the amount of seed funding that a business owner
requires to start up the company.
One of the most important decisions that an entrepreneur needs to make is about
the location of the new business. An entrepreneur needs to decide on whether there
is a need for a permanent location.
The most important aspect to be considered in choosing a location for the new business
is the target audience. Entrepreneur first needs to identify the target audience
and then find a location that will serve this target audience in the best way.
Before finalizing on the location for the new business, the entrepreneur needs to
visit the areas and see what the traffic pattern is. Then the business owner needs
to check with the property managers of the target location regarding issues such
as costs, cash flow, and staffing and lease length.
An entrepreneur setting up a business in a public place such as side-walk or near
the park needs to contact the city or county to examine the permits required. The
entrepreneur also needs to get the requisite business licenses in order before establishing
Before deciding on a location for the new business, the owner also needs to examine
the business proposal to evaluate whether the rates of the lease goes up during
holidays. Business owners also need to find out from the property managers if there
is any storage space associated with the space.
One of the most common mistakes made by a small business owner is lack of market
research. Poor positioning of the product or wrong targeting of the product can
lead the business to collapse.
Another mistake that is commonly made by many small business operators is choosing
the wrong location for the new business. The rental rate may be great, but if the
location doesn't draw people that may be attracted to the product then the business
entrepreneur is in trouble.