Stage 7: Finalizing
Step 25: Finalize Location
The Concept:
Once you've secured financing, it's time to secure your business' future home.
What you need to know:
You've picked out a building; now you must finalize the lease or purchase agreement, negotiate whether you'll have renewals of the lease or an option to purchase, and obtain insurance. Again, if you're leasing a location, be sure an attorney or real estate professional reviews the lease. You need to fully understand the type of lease (there are many) as well as its terms so that you're crystal-clear on the liabilities and duties assumed by each party. Attempt to negotiate terms you dislike, such as the length of the lease. If the building needs a coat of paint or more serious improvements, make sure the landlord's responsibility for those are built into the contract.
Points to consider:
- Will the landlord permit alterations you need? Must you pay to restore the site to its original condition when you leave?
- Are drawings and a written description of the facility attached to the lease?
- Are guidelines for lease renewal included in the document?
- When is your first payment due? What is your date of possession?
- What are the owner's responsibilities for site improvement?
- Who pays the taxes, insurance, utilities, and maintenance?
- Do I have a cap on rent increases?
- What are the terms of escalation?
- Is the owner penalized in the case of delayed occupancy?
- Have you considered using a buyer’s rep vs. an attorney? Fees are not paid to a buyer’s rep unless you buy a building.
- Has my attorney reviewed the lease or purchase agreement? Do I understand all rights and responsibilities regarding this property?
Step 26: Implementing Your Plan
The Concept:
A few final steps remain before you are ready to open your business.
What you need to know:
Set Opening Date:
An opening date is a carefully chosen hard target that builds anticipation among your employees and your future customers. You should be realistic in selecting the first day that your business is open. All operations systems need to be in place. A "soft" opening is suggested for retail-specific operations. Be certain that employees are familiar with the operation of cash registers, credit card transactions, phone lines and computer software as well as the layout of the retail space and storage.
Begin Marketing Efforts:
Implement components of your strategic marketing plan in advance of the opening date so that customers are informed about your business. Early on, it might be most cost effective to have your sales force do some of your marketing.
Place Inventory Orders:
You previously have determined your inventory needs. Now is the time to stock up so you have something to sell. Order your base and seasonal inventory. Finalize the payment terms and agreement. Implement your chosen inventory management system before the goods arrive.
Set Management System:
Start your accounting, payroll and quality control systems in advance of the opening to work out any bugs. An outside payroll service provider can help your payroll system run more smoothly and ensure compliance with all federal and state tax filings and withholdings. This additional cost can be weighed against the benefits of having the provider represent your business and being financially liable for errors with deposits or government reporting.
Points to consider:
- When will renovation of the business site be finished?
- What is the official occupancy date?
- Would the business benefit from a "soft" opening one or two weeks before the grand opening so that any operational bugs can be worked out?
- Is the strategic marketing plan ready for roll out?
- When will needed inventory and equipment arrive, and how long will it take to put these in place? When will products be ready to sell?
- Have employees been trained on how to respond to customers?
- Have employees been trained on how to respond in an emergency situation?
- Have I chosen an opening date with enough breathing room to accommodate all of the above?
- Do initial marketing efforts seem to be working? Have I generated interest from passersby, the press or potential customers in advance of the opening?
Step 27: Open for Business
The Concept:
Congratulate yourself on getting a new business off the ground but don't become complacent or lost in day-to-day management.
What you need to know:
You're on your way! But the battle to stay in business and to thrive has just begun. The successful entrepreneur continues to monitor changes in the marketplace—competitors, technologies, regulations—and aggressively searches for new opportunities to grow the business while keeping the active customer base satisfied. No matter how big your business becomes always remember the values and determination that brought you to this point. Stay focused and good luck!
