If you're thinking of renting this space... The Secret Shopper So, you'd like to open your own business. Or maybe you're expanding; you've got a store elsewhere. Congratulations. We love to welcome new businesses to the neighborhood. But before you sign that lease, look around you. What other businesses do you see near this space? If you're observant, you'll notice that there are a lot of small groceries and delis. How many are there on the block where you're thinking of renting a space? Two? Three? Four? And what kind of business are you thinking of opening? Oh, you, too, thought you would give the grocery business a try? Or maybe a 99-cents store? Or a laundromat? Isn't that nice. Well before you sign that lease, figure out the answer to these questions: What can I offer that these other stores don't already provide? Are you going to sell some product or provide some service that they don't? Are you going to offer better prices, better quality, different brands? If not, why is anyone going to shop at your store instead of the ones that already exist? If you sell the same low-quality, cheap-price kitchen towels as the next 99-cents store, what will inspire people to shop in your store? What kind of profit are the existing businesses making? If you want to open a laundromat, for example, spend some time watching the one nearest by. Is it crowded? Do people have to wait to use a machine? If so, there may be customers waiting for you. But if the existing laundromat isn't overflowing with customers, where do you think customers for your business will come from? Is there another kind of business that's missing here? Or is there a better location for your business idea? If you really want to open a donut shop, go right ahead -- but don't rent the space next door to Dunkin' Donuts. Find another street, with no donut shop, and you'll do better. If you really want to open a shop on a particular street, figure out what will do well there. Banks making business loans require a business plan which shows how the business intends to make money. While you don't need one to open a store, its not a bad idea to draw one up, because it makes you think through a strategy for dealing with the problems and opportunities that you will face in your business. The Small Business Development Center, located at Bronx Community College, provides free assistance to small businesses and people interested in starting a business (563-3570). Now that we've given a homework assignment to prospective neighborhood merchants, it's time to assign some responsibility to property owners. Landlords have a self interest in determining whether or not a particular business is likely to succeed. If a store does well, the merchant keeps up with the rent. If it doesn't do well, it goes out of business, and the landlord is stuck with a vacant property for several months. So why do so many landlords appear to act against their self interest by renting to the types of businesses that are already abundant in the area? It's hard to know. Maybe it's because the landlords don't live or work in the area and have very little understanding of the types of goods and services the neighborhood requires. Until a group of local clergy met with a the landlord of the property that is now home to Blockbuster on East 204th Street in Norwood, that landlord was under the impression that there were few children in this neighborhood and that a family business like Blockbuster wouldn't fare well. That was over five years ago, and Blockbuster is still thriving. So, if you rent to the fourth bodega on the block, you won't be doing yourself or the neighborhood any favors. Don't know what the neighborhood needs? Ask your other tenants. Ask their customers. Find out who the leaders in the community are and ask them. Invest your time where your money is invested and it will pay you great dividends. The Secret Shopper is a monthly column in the Norwood News. If you have a question or concern regarding local shopping or business issues, write: Secret Shopper, Norwood News, 75 E. 208th St., Bronx, NY 10467, or e-mail: nornews@con2.com.
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