Being an entrepreneur can be as daunting and intimidating as it is fulfilling and profitable.
Over the past few years, our collective economy has witnessed a steady rise in the number of entrepreneurs, online business owners, and especially home-based businesses. Each type of business has its advantages and disadvantages. It is a matter of necessity for entrepreneurs to be able to maintain a clear vision, identify our needs and take inventory with regard to our strengths, weaknesses and available resources. Starting and running a business is a herculean feat, especially for a first-time business owner. Being informed is the first step on a long road towards success. Let’s weigh some of the basic pros and cons of an undertaking a brick and mortar company.
The first and probably most obvious proof having a physical location attached to your business name is visibility. One of the key tenets of real estate is, ‘location, location, location’. A small storefront on a busy street in the right neighborhood can metamorphose into a multi-million-dollar corporation. Many companies have grown their brands by starting small, utilizing customer financing programs because they were unable to procure working capital loans for small business. The benefit of being able to have an actual location gives customers an opportunity to interact directly with us as well as our products. Another advantage to having a brick and mortar, even in the start-up phases, is that it begins to establish trust and confidence in our brands and products immediately. This leads to brand loyalty and long-term patronage which equals revenue.
There are of course arguments against divesting your energy and finances into a brick and mortar, primarily the initial investment, start-up costs and overhead. These three aspects of owning a brick and mortar company can combine to create a downward spiral for even a seasoned business owner. Also, investing in a building in a booming neighborhood can turn into a nightmare with the mercurial landscape that is the real estate market. A wrong turn in zoning or a decrease in property value can mean disaster. The most important thing, either way, is to be informed and make the best decision we can with the resources that we have at our disposal.