By: The Lease Coach
As we explain in our new book, Negotiating Commercial Leases & Renewals FOR DUMMIES, a bad lease agreement may hold you back from making a good profit or even result in the closure of your salon. Great tanning salons in poor or mediocre locations will never reach the full potential that a better location may offer. On the other hand, perhaps you’ve picked a great location, but leased too many (or too few) square feet; this can prove to be a problem as well.
Combine a poor location with a high rental rate and you have a recipe for disaster. Your tanning salon business will never succeed, let alone sell for a profit. Too many tanning tenants are shopping for cheap space, but for the most part, get what they pay for location-wise. This isn’t to downplay the need for skillful negotiation; you don’t want to pay too much for a good location – it’s all relative. In many of the larger plazas and enclosed malls, the property may be recognized as an excellent location, but getting stuck in a quiet area of the property may make your business less visible than you would like.
Another factor can be a lack of adequate parking for your clients. One tenant The Lease Coach worked with for a midterm rent reduction came to the unfortunate realization that their newest location was parking starved. Just when people wanted to visit, the parking lot was already full of vehicles. Customers parked briefly outside the front door, came in to complain that they couldn’t find a parking space even close by, returned to their cars and drove away.