Help! Need some business advice on Short Term lease

I have the opportunity of a lifetime! I found a location that has very affordable rent in a fantastic high demand location. Here's the catch: the landlord will only rent to me for 12 months and then automatic month to month after that, because the area is deemed to get public water eventually (who knows when) and he just wants to sell the land for development when it does, so he wants to keep his options open.

Do you think it is worth taking a short term lease for the exposure or would I be costing myself too much money in the end? I can't ask for a better location EVER! It is near several hotels and a huge shopping outlet and within minutes of a major highway. He has said he has used the short term lease with his past renters and the last one was there for 5 years and was successful enough to leave and build their own building. What do you think? Worth it or not?

Replies to This Discussion

Permalink Reply by Denise Ivers on April 5, 2013 at 4:21pm

Hi Brigitte!

I think that as long as you don't have to invest too much money to get your new location up and running this could be a great move for you. I also thinks it's important to have a business plan that includes your business goals and plan of action for 3-5 years. It's risky to not plan ahead but then again when a good opportunity arises you need to take that plunge if you can determine that your losses (capital to move your business) will be offset by attracting more clientele. You didn't mention how far this location is to your current location. Just keep in mind that a few miles can make difference with some clients and they may not return.

Last November I did move but I let all my clients know ahead of time when they came in for their treatments and I moved only 2.5 miles away. I didn't lose any clients. Let us know how this turns out for you!! Good luck!!!

Permalink Reply by Brigitte McDonald on April 5, 2013 at 7:43pm

Thanks Denise! This new place is about 5 mins from where I am now (5-7 miles). I have mentioned the location to a few of my clients and most of them have been pleased. I have a few that like to "walk" to their appointments so I may lose those clients (most of them are brow waxing). Some of my clients have complained about the parking in my current location as it's in a very busy area (shared with about 10 eye doctors) and you have to "fight" for street parking or park 1/2 block away at the public lot. The new place has it's own parking lot and the landlord has agreed to do a few things to the buiilding to make my move easier financially and he also is agreeing to take care of the parking lot snow removal and cut the grass. So all I'd be doing right away would be painting, decorating and possibly installing some water lines. Hopefully all things will work out OK. I do appreciate your advice :)