Taking a Small Business From Pop-Up to Long-Term Lease
During a micro learning session at the ICSC’s Here, We Go. 2021 national conference in Las Vegas, attendees learn a few tips about how to transition small tenants into stable, longer-term leases.
LAS VEGAS—“Approximately 30% of small businesses close within the first few years, but they are the ones that really make up the flavor of a neighborhood.” So said Jeanne Heller, director of marketing at Matanky Realty Group, who has been working with small businesses for 15 years.
During a micro learning session, Heller said that any pop up spot that takes space in the community are the ones having daily talks to the community and the ones who are really telling the customer’s story.
“If you want to go full into a space, you need to take an inventory of lessons learned during that time of discussion,” she said. “Do you need more staffing/? What is the product selection like? What has the feedback been? Pop up space gives you the opportunity to get that feedback. What are the things they cannot find anywhere? What drew them into the space and how can you do better?”
From there, you revise your business plan, she explained. “If you are looking at a permanent space, what are you going to do to be sure everything is happening and how can you pivot, adjust and update from the things you were doing? You need to think about also engaging the professionals who really can help you get to where you need to be.” It is those professionals, she added, who can help you tell your story and make you unique.
In addition to thinking about the physical store, you must have an online presence and review and update your financing. “Cash flow is king,” she said, adding that you need to know what you need to hit each month monetarily in order to hit your goals.
Other things to consider are build out, she explained. “You need to know how much signage costs and be able to anticipate that type of spending.” Revising your marketing plan is also important. “Do you know how your products are selling? How would you adjust your products?”
After all that, you negotiate your lease, get a commercial broker who understands leases, get a CRE attorney and then simply maintain your drive and your consistency, she noted. “It takes incredible discipline to keep going as a small business,” explained Heller.
Check back for more from GlobeSt.com in the next week from the ICSC live event and be sure to check on stories you might have missed below.
Innovation, Technology Drive New Retail Formats
The Case for EV Charging At Shopping Centers
5 Takeaways From JLL’s Retail Recovery Report
Why Brick and Mortar Retailing Will Outlast the Global Pandemic
Welcome to ICSC: Attendees Tell Us They Are Thrilled to “Make in Person Deals Happen”