Commercial real estate business
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About the essence. There is one topic that has worried me for more than a week. Itself has not yet come to the denominator. Can anyone help?
There is a basement (oh, how!) room with an area of just over 90 sq. ., located in the basement-basement of a residential, as it were, "elite" house (the cost of a square of housing in which is about $ 4000), which is located at the intersection of two busy streets that are NOT the central arteries of a city with a million population. The street passing in front of the house, as it were, divides the area into the "quarter of the rich" (in fact, on the side of this house there are residential complexes where very wealthy specimens live.))))) And "reservation of hicks" (Khrushchebs, Brezhnev's 9-storey buildings, with incomes below average, mostly pensioners - the intelligentsia of the Soviet period).
What's next? In the next house (essentially elite isho from the era of stagnation, mostly party people lived)))) there is a large supermarket of the "discounter" format, an assortment: food, chemicals, household goods (main group). Buyer's portrait - residents of neighboring houses with below average income.
Within a radius of 100 m there are: 1. pharmacy - 3 pcs. ... Nice grocery store - 2 pcs. ... bank - 9 pcs. ... Party goods store - 1 pc. ... Excellent beauty salon - 8 pcs. ... "Elite" plumbing store - 2 pcs. ... Stationery store - 2 pcs. ... Funeral home -3 pcs. ... Oriental cafe, a la shashlik-shawarma. - 1 PC. 0. Household goods store - 2 pcs. 1. "Everything for European-quality repair" shop - 2 pcs. 2. Salon euro-windows, curtains and blinds -1 pc. 3. A well-known law firm - 6 pcs. 4. repair of office equipment, computers, refueling of cartridges - 5 pcs. 5. shop everything for electricians - 1 pc. 6. Webdesign studio - 9 pcs. 7. Cooking - 2 pcs. 8. convenience store - "24 Open" - 4 pcs. 9. Construction, installation and repair office - 6 pcs. 0. Cleaning which - 4 pcs. 1. Atelier - 2 pcs. 2. Advertising agency - 2 pcs. 3. Evaluation of everything and everyone - 1 PC. 4. Travel agencies - 4 pcs. 5. Insurance - 5 pcs. 6. WOMEN'S clothing store - 8 PCS. 7. detective and security agency - 5 pcs.
The task is to come up with and organize any profitable business in this room. What question we have been racking my head for a week and a half. There are a lot of ideas, but the question is what consumer audience to target these ideas to.
In general, I post a photo of the premises and surroundings and ask for your help, dear members of the forum, who thinks what about this.
Table of contents of the article: 1. TOP 5 mistakes made by the owners of premises 1.. Renovation first - ideas later 1.. Your business will be more profitable than renting 1.. It is not necessary to enter the rental price into the cost part 1.. Need to use the area yourself 1.. Expensive goods and services will bring more profit 2. Which business to open in which premises 2.. The central part of the city 2.. Features of choice for large spaces 3. Basic requirements 3.. Gym 3.. Warehouse 3.. Manufacturing 3.. Car service 4. In conclusion
When there is a property in the property, what kind of business to open in it becomes a major issue. Many factors influence the choice of the optimal activity, in which all potential resources will be revealed and it will be possible to extract maximum profit from real estate. This is the location, and the footage, and the proximity to the metro, and the number of storeys of the building in which it is located, and the condition of the premises, and, of course, the potential of its owner - finances, experience in running business projects, knowledge in specific industries.
TOP mistakes made by owners of premises
Any real estate is a worthy resource that must be properly disposed of to find the most effective use for it. Business analysts say that in 90% of cases, the main reason for low income from such a valuable resource as non-residential real estate lies not in the characteristics of the object, but in inappropriate disposal of it and following stereotypes.
Renovation first, ideas second
The first thing that should be warned against owners who already have premises, but have no idea what kind of business to start - from unjustified investments in renovations. Many people follow the wrong path, believing that first you need to put the object in order, and then think about what it can be used for. This leads to unnecessary expenses due to the fact that the volume and quality and type of repairs do not correspond to the business that the owner subsequently conducts in it.
Errors are especially often associated with moving, saving and demolishing walls - without a clear concept of a business project, inexperienced owners often demolish walls in objects, creating a single space, but later open a business for which such a layout turns out to be not very good a good idea. It can be a beauty salon, which needs separate rooms for a cosmetologist and a massage therapist, and you have to urgently erect partitions in an already made repair, and additionally change the water distribution scheme.
By preparing the area in accordance with the goals of the business initially, you can save up to 40% of the budget for repairs.
Your business will be more profitable than renting
The answer is not as straightforward as it might seem if you follow the logic that the one who removes the object expects to earn more than paying for the use of the object. It is important to measure the scale of the business for which your object is relevant, its cost, the payback period and the complexity of running with your resources today.
Any novice entrepreneur at a certain stage in the development of his business is faced with the need to find a place to work. Some businessmen spend an incredible amount of time and money building their own offices and shops, while the majority prefer an easier way - renting a ready-made facility already adapted for business. Since the popularity of entrepreneurship ideas among citizens is growing every day, a business on commercial real estate may well become a source of decent and stable income.
What is commercial property?
The category of commercial real estate includes buildings and structures that are capable of generating constant profit. In other words, commercial real estate and business are directly related to each other: it is these objects that are used by citizens to conduct business. At first glance, this definition is suitable not only for offices and shops, but also for daily rented apartments. In fact, this is not the case: the second key difference between commercial properties is their inability for permanent residence. Among them are:
- Free assignment objects. These premises are built without reference to any use. But the lack of restrictions can be a disadvantage, since the regulatory requirements for office and restaurant vary greatly;
- Retail. Suitable for selling goods and providing services to citizens. This includes areas in shopping centers, premises on the first floors of buildings, and individual pavilions. For them, a convenient entrance from the street and high traffic are important;
- Catering facilities. To equip a cafe or burger, you also need a room on the ground floor in a crowded place. But according to sanitary rules, there should be separate ventilation, powerful power supply, uninterrupted water supply;
- Office facilities. Both multi-storey business centers and reconstructed apartments are used in their capacity. Requirements for offices include the availability of communication lines and communications, convenient parking, transport accessibility;
- Production facilities. Most often we are talking about small workshops, since renting an entire plant is economically unprofitable. Requirements for premises - water supply and electrification, access roads, heating;
- Warehouse facilities. These can be both simple hangars without heating, and warm warehouses with lifting equipment, vegetable stores and granaries. Comfortable entrances, reliable security, ventilation and low humidity are important for them;
- Apartments. In comparison with other types of commercial real estate, this can be considered an exception, as the apartments are used for living. However, they are also part of the non-residential fund and generate income;
- Hotel properties. The category includes full-fledged hotels, mini-hotels, various boarding houses and hostels. They can be located in the city center, near train stations or historical monuments, on the coast;
- Social facilities. These include medical and educational centers, buildings of administrative and financial institutions, bus stations or train stations, as well as other facilities designed to serve citizens.
Commercial real estate has one more feature: in order to conduct business, they try not to buy it, but to rent it. This is primarily due to its high cost, which increases the capital intensity of projects. In addition, the optimal location for an office and a store is not easy to choose on the first try, and the market situation often changes, as a result of which businessmen have to periodically move.
- Well-located premises are in great demand. With an adequate pricing policy, a queue of clients will line up for an entrepreneur;
- There are many options for starting a business: commercial real estate includes not only offices and shops, but also workshops, farms, warehouses;
- Premises are practically not getting cheaper. If you guess with the purchase of an object in an actively developing area, after a while its price will increase several times;
- By renting out real estate, an entrepreneur will receive a stable income and spend a couple of hours a day at work. You can even entrust the case to managers;
- The payback period for such objects is two to three times less than that of residential ones. Thus, return on investment for 5-7 years is considered the norm, and for apartments the average period is 12 years or more.
At the same time, it should be understood that it is practically impossible to start such a business without investments: commercial real estate is very expensive, and working with premises less than 500–1000 m2 is unprofitable. Moreover, the facility will have to be repaired, equipped with engineering systems and communication lines, which again will require costs. If an entrepreneur does not have capital of at least 2-3 million rubles, it is better for him to look for a less resource-intensive type of activity - for example, think about how to open a real estate agency. There are other nuances:
- It is unrealistic to find a good room on the first try without appropriate experience. It is especially difficult to choose objects for shops and service enterprises;
- Doing business on the sublease of commercial real estate, everything will have to be coordinated with the owner of the premises. He may not approve of some decisions;
- Such activity only makes sense in megacities. In small towns, the range of options is limited to one or two streets, where almost all premises are already occupied;
- Disappointed with a business idea, real estate cannot be sold quickly and profitably. If the entrepreneur has also repaired the premises, he will face losses.
How to make money on commercial real estate
These business ideas require a minimum: an area of no more than 5 square meters. ... and starting capital of about 200 thousand rubles. Collected here are 25 budget ideas for newbies looking to start a business from scratch in the smallest space.
Modern entrepreneurship can make money on every square meter. Practice shows that a business on a small area is quite realistic and profitable!
What can be placed on 5 square meters? As a rule, the ideas of such a compact business are associated with vending, islands in a shopping center, the provision of small services, street kiosks or simple attractions that do not require bulky equipment.
Usually this question is asked in two cases: if the project budget is small and you need to spend at least; if the entrepreneur has a commercial area for which he is looking for a business. Depending on the situation, the choice of idea will be different. In the first case, the main criterion is a small budget. You choose an idea based on the volume of costs, and then look for where to place your business. In the second case, you select an idea for a specific location, which means that you should focus primarily on the local audience, which has already been formed, the specifics of the retail space, and the territorial location. Particular attention should be paid to the anchor tenants in the neighborhood, which attract the main customer flow. These can be grocery supermarkets, large equipment stores, cinemas, etc.
From all of the above, we can highlight the features of a business on a small retail space:
minimal start-up investment and quick payback;
dependence on anchor tenants;
the opportunity to increase income by replicating the business;
work in cramped conditions should be compensated for by the client by the speed of order execution;
business costs are well forecasted as they are typical;
UTII can be applied for many types of business;