Here’s a fact that most entrepreneurs are afraid to accept: a prime location of the business has a significant impact on the success of the business. If you’re a budding business owner, hunting for a good, spot-on industrial space for lease should be one of the top priorities of the business plan along with setting up the initial investment or capital and making the product or services suitable to be sold to a specific audience or to the general public.
Shedding Light On Australian Businesses
In 2018, there is a record of at least 2.3 million actively trading businesses in Australia. This has enabled the economic growth of the country as well as employment with over 62.70 percent employment rate last September 2019. However, more than 60 percent of small businesses close down after three years of operation.
What could be the cause? Here are the major reasons why businesses stop working:
- Insufficient Capital Money – starting a business would require making an investment that you could turn into profit in the long run. However, some entrepreneurs commit this mistake of setting aside less capital money for building a business that would require a huge initial sum to operate. In having an initial investment, make sure that it covers the expenses for your business to operate before looking for a shop for lease. Take a look at Rivermakers
- Poor Product or Service Management – when you sell bad quality products or service, expect your business to go downhill. Products and services rely much on the patronization of customers. That means that the more likable your product or service is, the higher the chance that your customers will most likely purchase what you sell. If you’re handling a big business, keep your materials in high quality by storing them inside a warehouse for lease to be taken care of by the inventory staff.
- The Business Is On The Wrong Location – a common mistake for entrepreneurs is to assume that people in an area will spend time to shop inside an isolated industrial space for lease, the people can afford everything you sell or the people will need what you provide. The truth is, you can’t please everyone, but you can choose your target audience in business. When you have specific people who are potential buyers in one place, you can put up your business with confidence because they have a higher chance of buying!
- Bad Business Management – when you manage a business, you’re not just paying for the industrial space for lease that you availed. You need to calculate what are the expenses needed to be paid in order to keep the business running such as equipment, tax, insurance, inventory, production, electricity, water, employee salaries and more. The whole business profits must be put to use and divided accordingly to the purpose.
With this, it is also helpful to seek a mentor or business strategist that has experience and knowledge about the ins and outs of handling a business.
Pinpoint A Great Location
The business competition in Australia never stops, but that doesn’t mean you can’t win. Start with your clear business plan and look for a great location such as the commercial lease Brisbane has to offer. Also, check out Rivermakers with this link: https://rivermakers.com.au/