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Location: RI, MA, VT, WI, IL, CA, IN (that one sucked), KY
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If you're opening a store like that, I don't think you should be worried about the cheapest location, but a location that will generate a lot of traffic. And, the "or something" is a pretty big deal, since different stores would be better suited in very different places. The more run down, probably the cheaper. I have friends in South Providence that pay a fraction for their rent than they would for the same place in nicer neighborhoods, such a friend who owns a business in the near west side area.
If you're opening a store like that, I don't think you should be worried about the cheapest location, but a location that will generate a lot of traffic. And, the "or something" is a pretty big deal, since different stores would be better suited in very different places. The more run down, probably the cheaper. I have friends in South Providence that pay a fraction for their rent than they would for the same place in nicer neighborhoods, such a friend who owns a business in the near west side area.
I put "or something" to cast as wide a net as possible so I can learn more information about this matter. Does it cost $20,000 a month to rent a small store or $200. Or something in between? Where in between? I have some idea, but not much and would like to learn more.
As for me I don't have any immediate plan to open a store in the near future, but I like to think 200 steps ahead. Currently as a hobby I sell media online. Books, DVDs, etc. Despite DVDs dying it has been profitable enough for me to start looking into getting a proper business license since after you make $20,000 on places like eBay and Amazon you have to start reporting it. Also, manufacturers won't sell directly to you in bulk without a business license (nor should they really) and after researching it buying from manufacturers will be vital for me to grow in this endeavor.
Anyway, I still work full-time outside of this and aren't making any kind of profit to live off it. But who is to say? If I grew big enough to justify a business license rather than just being a seller than maybe I'll grow big enough to justify a store. Again DVDs are dying. Bookstores are closing up shops, not opening them. If I ever get to opening a store I'll have to diversify. Maybe as a general store like convenience, maybe to electronics, maybe to clothing...or something.
In any case I live in Massachusetts and I've researched commercial real estate enough here to know that starting up a physical store is expensive as hell. So unless I move my options (again very far down the road if ever) are most likely Rhode Island or New Hampshire. I'm sure they're expensive as hell too, but Massachusetts is tough to beat in that regard. Still, I have very little idea about either and would like to ask enough questions to learn more. Cast a big net.
So any ballpark figures for all the info I provided?
This is really going to vary depending on where you want to be located. Some really tiny locations are going to be a few hundred, bigger will be few thousand a month. Also, are you looking for something small in a strip, a stand alone location, parking? all those will factor in. If you can find a suitable spot in a small city setting you may find a storefront ground floor with apartments above, particularly in an owner occupied type situation will be better bang for your buck.
I have friends who bought a small single family home in fall river that has a small (like 2-300 sq ft) old unused storefront walk out attached that they were told they could potentially charge a few hundred a month if they could find the right tenant. I think going commercial rate in that area is $1-2/sq ft per month, some more some less again based on location and size.
Another friend started up a small business in Newport (not on thames st) and is paying around $2.5k if I recall (and assuming he being truthful) rate per sq ft significantly higher here than above.
This is really going to vary depending on where you want to be located. Some really tiny locations are going to be a few hundred, bigger will be few thousand a month. Also, are you looking for something small in a strip, a stand alone location, parking? all those will factor in. If you can find a suitable spot in a small city setting you may find a storefront ground floor with apartments above, particularly in an owner occupied type situation will be better bang for your buck.
I have friends who bought a small single family home in fall river that has a small (like 2-300 sq ft) old unused storefront walk out attached that they were told they could potentially charge a few hundred a month if they could find the right tenant. I think going commercial rate in that area is $1-2/sq ft per month, some more some less again based on location and size.
Another friend started up a small business in Newport (not on thames st) and is paying around $2.5k if I recall (and assuming he being truthful) rate per sq ft significantly higher here than above.
Thank you for the reply and helping explain the variables. Also, it was interesting to hear your story of some friends who in effect bought a business area while just intending to buy a house.
I think the way this thread most applies to me in the immediate future would be having a tiny shop with minimal hours and keeping the rental price at the bare minimum. The reason for this would be some prospective manufactures/wholesalers just won't do business with a company that doesn't have a physical or brick and mortar store. Even then though I don't really see it being advantageous as it seems kind of silly to have a whole retail space to do business with some manufacturers/wholesalers. Unless it would guarantee thousands in profit and in business there are no guarantees.
I assume you've heard of Redbox. What makes you think people will go to your tiny store that will only be open minimal hours?
Meh if I ever did it and had the physical store for anything more than satisfying the requirement of ordering from manufacturers/wholesalers I'd probably go the collectibles route. Give customers extra incentive to come in by offering rare movie, book, sports, general entertainment related items that they can't find elsewhere. While also offering some of my mass produced merchandise they can find elsewhere. I've sold collectibles as well though and it's much more of a headache than the mass produced stuff between hunting down things, verifying them, and dying audiences for some products. But like you said you can't compete with Redbox not to mention Walmart, Best Buy, Target, Etc. Even the collectibles market and the few nickels and dimes it comes with is about to get a lot tougher with Walmart recently announcing their collectibles division.
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