Buying a store and keeping it demands a lot of money but there are many people who are not being able to get any returns out of the stores they own. We see that there are many stores which are always occupied by one or another business but the many which are always vacant. This article is a discussion about why the stores remain empty and what can be done as a solution. There are many factors which affect the occupancy and the attractiveness of the store. We will mention few points one by one and try to understand that why few stores are not able to attract any clients when many other stores always remain occupied?
LocalityEvery location is not good for every business. Hence if the store is suitable for certain type of business, for which there is no demand in that particular area, the store will not do good. If the store is located in a far away location, may there is not sufficient demand and human traffic to make any business run and also there is a possibility of something already established nearby which kills the possibility of any same kind of business flourish as the demand is limited or the people are habitual to a particular store. Hence it needs to be analyzed properly that what kind of business can survive in that particular area and then the relevant clients can be attracted.
Other factors like parking facility, surroundings etc also make the store unattractive or attractive.
StructureFew stores have different size than the size in trend .Sometimes the shape is different which makes it unattractive. It may be too small to carry any business or it may be too large which involves unwanted space. May be there is some problem with the design due to which it is not being able to attract any business. Some stores are unnecessarily deep and some have such shape which cannot be utilized fully. Hence if the size, shape or design seem to an issue, may be some renovation can be done so that it can attract new businesses. Another solution to this is, to compromise on rent and advertising it making the low rent a highlight. In such cases people having low budget compromise with the size and shape and make some temporary arrangement according to the business.
PriceThere are many stores which are good but vacant just because the asking price is too high. These stores are meant for the rent, which is obvious but keeping a very high asking price sometimes becomes a hurdle for a businessmen, being a landlord one should more concentrate on a regular income rather than the high income. It is better if the store earns less rent than remaining vacant for a long time. Regular money can be used to make more money always hence it is advised to keep the asking price within the approach of the businessmen. One can also keep a condition like giving the property in lesser price in the beginning and after few months you can have the option of increase as till than if the business survives the businessmen will be happy to increase it.
Permit ConditionsTaking few permits in particular areas is very difficult .In some areas the municipality rules trouble a lot by some additional expensive processes which makes it challenging for the people get the required permits. The property may be attractive but sometimes these additional factors make it difficult for the business to survive and earn a profit as due to addition complex and costly systems.
Safety IssuesThe circumstances around always keep changing. Today any area which is safe may not remain safe due to few changes in the surroundings. There can be many reasons behind it like outsiders coming in big numbers which though helps the business but affects the safety. There can be many other reasons but that sometimes challenge the business owners to run the business peacefully in particular locations.
Social ChangesThe area also may change socially by the time. Few businesses which can survive among a certain group of people may not be able to survive with other group of people. In these cases again some analysis required to find the right kind of business in that particular area.
It also makes sense to keep the business compatible to the age group which lives in the area. If the business is for some other group, cannot survive. Hence here also one needs to focus or start an appropriate kind of business.
Change In Economic ConditionThe economic condition also has a direct connection. Particular businesses can survive only where people have enough money to spend. On the contrary, few businesses are meant for middle and lower middle class. The business gets affected with the change in buying capacity change of people around. Hence the change in economical condition affects the business and this needs to be analyzed well if things are not in favor.
Few businesses can survive with a particular type of business. If the bigger one shuts down there is less chance for the small ones to survive. If such a change and occurs in the area, there is possibility of the small businesses not survive.
Sudden Rise In RentAs the economic condition of the area changes sometimes there is sudden rise in the rent as well. Not necessarily with the growing economic condition, the business also grows but the rents increase. Hence sudden increase in the rent in the area becomes a challenge for the businessmen.
We have mentioned many reasons, why the businesses in few areas can’t survive which results in many empty stores which leave an effect of the whole economy of the area. The solution is to find out the actual reason and then work accordingly. As money makes money, the landlords should give more attention to the regularity of income rather than more amount of income.
Apart from the above, there is a new problem which online business, which also is becoming a challenge and solution to which, is yet to be found.