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Five Steps For You To Choose Good Business Space

choose good business space

As we all know, space plays an important role in the business, if you make the wrong choice can lead to losses, even bankruptcy. Therefore, before hiring a business space, you need to master the following five steps:

Step one: Carefully research the location and area for rented space

Nowadays, many people tend to prefer low-cost space, even if they do not hesitate to sign a lease contract, and then consider setting up a business. This is a dangerous action that can lead to major risks later. According to experts in the real estate sector, the smart choice for renters of business space is: “Cheap is not enough – Must be right.”

~~>>See more information about the real estate investment here: Vietnam real estate investment

choose good business space
It is necessary to carefully explore the rented area of business space. Photo: Internet

For example, a smart tenant will be willing to spend up to VND 100 million to rent a space in a position that can bring good sales, not spend VND 20 million to rent a business point with risks. Some questions to remember before deciding to rent a business space is: Is this area feasible? Is there a lot of potential customers here? What is the living standard of the people here?

Step two: Filter the surround information

This is an important step and needs to gather a lot of information in detail, based on the following three sequences:

– First, filter demographic information: customers in the business area are male or female, their average age?

Second, filter product information: What are the people using products that are almost similar to the ones you are planning to do business with? What is the price they pay for each product and how frequent they use these products?

– Third, filter information about competitors: What are the competitors selling products? Why are they selling these products? What are their highlights?

Certainly, these questions are a test that most professional retail chains in Vietnam and in the world are doing. Specifically, it is a survey of market research. If your resources are limited, you have to spend more time on a screening of space to minimize risk before starting the business.

Step Three: Search and screen the space

When this step comes, the person looking to rent a space must search for real estate transactions information that matches the type of business and budget available. The source of information collection is varied, which can come from brokers, newspapers, websites, collected information from driving on the road or asking the house owner directly … The most important in this step is to give specific criteria to the type of business to quickly filter out unnecessary information.

choose good business space
List and screen appropriate spaces. Photo: Internet

Criteria include: area, number of guests, budget, strategic location … Please describe the specific criteria through the calculation steps above for broker so that they can find quickly the real estate for you. A real trip must be arranged to all spaces that have been screened for more information. Remember to: “Spend 80% of the time to filter deals, 20% of the time to visit and negotiate” Do not do the opposite way because it will waste your time.

Step Four: Negotiate with owner

There is an immutable principle while negotiating: “Take a little time for negotiation” Like a tug of war, if you win instantly, you will fall off. Do not hurry to accept the offer of house owner/landlord, if they really want to rent, they will accept the deal. Accepting early will make the house owner/landlord feel “wrong” and they will probably stop suddenly the deal.

The next principle is the negotiation based on the philosophy of “win-win.” Tenants will gain what they negotiated on the basis of winners. If the contract is finished without extension of contract from the house owner, it is the loss for the lessee because the business has stabilized, guests are familiar with the venue and brand. If the house owner does not receive satisfactory benefits, they may seek a reason to take back the house.

choose good business space
Accepting early will make the owner/landlord feel “angry” and they will likely stop the transaction abruptly.

Another important principle is to absolutely avoid based on emotion when choosing the space. If space is good but exceeds the budget or does not fit the business criteria, quickly ignore it.

Step Five: Promote the contract

This is the last but extremely important step. Everything after the two sides of the negotiations must be documented specifically by contract. Some points to note when making space lease contract:

* First, the lease contract must have a total of seven points, including: rental price, deposit, rental area, lease period, annual increase, handover date and space condition at the delivery time.

choose good business space
Be careful before promoting your contract. Photo: Internet

Second, the notarization of contracts at any public notary office or private notary office should be done. At this step, the notary will confirm to you whether it is the real owner of the space.

* Third, you need to clearly agree with the costs involved in the contract, including: notary costs, repair costs (if any), repairing time … If you do not know this sector well, ask for a lawyer or experienced person to draft a contract for you.

In addition to the 5 steps mentioned above, one thing you are very concerned about is that if you have doubts and feel the lease space is not good, ignore it and do not regret it. Continue to spend more time looking for a different ideal space.

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Five Steps For You To Choose Good Business Space
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