Every day, aspiring entrepreneurs from Baldwin Park dream of starting their own business and most do not get past the talk. Some out a few ideas down on paper that might even resemble a business plan. Then what happens? Generally reality sets in as the logistics of starting a business start to pile up: how do I accept credit cards for payment? How much inventory should I stock? Perhaps the most important of all questions: Where should the business be located?
A common saying in the business community is that you need three things to guarantee success: Location, Location, and Location. While that is not entirely accurate, there is some truth behind it. Many fine businesses have gone under because they selected a poor location for their operation. The corollary is also true; many mediocre and even bad businesses stay open because of their site locations. Once the place has been selected, it is the entrepreneur’s job to convince the landlord to lease the space to the business.
This may seem like an easy thing, particularly in these uncertain times. Common sense might tell you that something is better than nothing and that anything is better in a retail location than no tenant at all. That adage may not be entirely true within the context of leasing space. One thing should be at the forefront for prospective retail business owners: their credit.
Credit is probably the first thing that your landlord will check. Like any renter, the person leasing the business space wants to know that your idea will be a good bet and that you have a reliable history of paying your other creditors. For first time business owners, this is where terrific personal credit comes into play. Many prospective landlords will utilize credit scores to determine whether or not you will be a good credit risk.
While credit is not the only thing that the landlord will evaluate; he or she will also probably want a peek at your business plan, it does play an important part in deciding if you will be a player or an “also-ran.”