Picking the right site and making sure it works for people is a big choice. It’s also the first thing you should do when you start walking downstream at full speed. If you want to avoid these major mistakes when starting a café in Melbourne, a store in Sydney, or a workshop for tradies up in Brisbane, you will save a lot of time, money, and stress.
Let us show you the five worst things that can happen when you open your first business, along with some useful advice to keep your business dream alive. Let’s jump right in!
Mistake 1: Not doing enough research before jumping in
Let’s say you want to open a shop in a busy part of Perth. You fall in love with the space at first sight—the rent seems fair, and you can’t wait to sign the lease. Wait! One big mistake that new business owners make is going straight to a spot without researching it first. Even if that prime spot looks great, it could be the end of your business right away if it doesn’t fit your target market or business plan.
Find out about the area. There might be your ideal buyers around. In a hipster neighbourhood like Fitzroy, a café might do well, but a niche store might not do so well in a place with not enough foot traffic. Find out what your rivals are doing so that there aren’t too many companies that offer the same thing as you. That would make it hard for you to stand out.
- Would it be easy for customers to get to your spot or at least park their cars and take public transportation?
- Think about how much exposure your shop needs. Does it need to be in the middle of everything or tucked away in an alley where no one goes?
- Do they have enough signs?
- Next, compare the rent to how much you think you’ll make to see if it’s worth the money to live there.
If you do some work, you won’t be stuck in a deal for a place that doesn’t work for you.
2. Not figuring out how much it will cost to set up
Here, a workspace is just rent and lights. Anyway, paying $75,000 in rent might be the only money a new business owner can spare to start up his enterprise. The Australian Institute of Business says that other costs related to the business include rates, insurance, advertising, furniture, phone calls, power, and fit-out. People often make the mistake of cutting corners, especially when they don’t have much money to spend. While cutting corners hurts a business’s ability to compete and gives it a bad name by stretching its image, low setup costs can lead to a disaster where the space is empty or turns off customers.
When you make your budget, try to include everything that you need. The most important things are improvements, like painting, adding lights, flooring, getting new shelves, etc. This can get pretty pricey if you want your construction contractors to make sure everything meets very strict safety or building standards, as well as standards for how it looks.
When you figure out the costs of running your business, don’t forget to include things like electricity, internet, and insurance. You should also think about one-time costs like getting permits or tools. Leave at least 10 to 20 percent more than what you planned to spend on setting up your business. This way, you can cover any unexpected costs. After making a very detailed list of all the expensive things you need, talk to either a business owner with a lot of experience or a financial advisor. They can help you make sure you don’t run out of money in the end.
Mistake 3: Not Seeing How Important Signage Is
Signs outside of a store are the first thing people notice, just like a good-looking face is the first thing people notice about you. One of the most important things for the success of your business is to not care about or berate them. This is especially true in a very competitive area like the Gold Coast shoreline or Adelaide’s Rundle Street. It’s a mistake to think that signage isn’t important; in reality, it can be a big help in building a business and getting customers.
Investing in clear, professional lease signage is crucial.
- It doesn’t matter if the sign has a lot of colour for a fun brand or something pretty simple for a high-tech brand. It should fit with the branding.
- At the same time, it needs to be easy to read even when lit up at night and seen from far away and up close.
- Make sure that the local council doesn’t have any strict rules about signs or places on the list of compliance that could limit their size or placement.
- Don’t just focus on the front; use window stickers or guiding signs to help people find their way right to the front door.
It’s like shaking hands with a perfect sign; it greets buyers and sets the tone for the experience they’re about to have.
Mistake 4: Not reading the lease
It’s easy to get caught up in the excitement of getting that dream spot and forget how important it is to sign the lease. However, it’s possible that not reading the fine print or negotiating the terms is what will get you into trouble down the road.
Please read the whole deal before you sign it. Some leases force you to pay higher rent or repairs that are way over what the building rules say you should do within a certain amount of time. Some will say the owner pays, others will say you do, and so on. You should get a lawyer if things get tough. You should try to work out these terms with your owner, especially if the place has been empty for a while. Being aware of the rules of your lease will protect you from unpleasant costs and give you peace of mind.
Mistake 5: When planning the layout, not thinking about how the customer will feel
The space is ready, the lease is signed, and the fit-out is done, but have you thought about how your customers will really get around? Badly designed plans will annoy customers more than anything else and hurt your sales. For example, a crowded store in Canberra or a badly designed café in Hobart will not go over well with customers, which will make them less likely to come back.
Think about what the customer does from the time they walk in until they leave. Can they find what they need by navigating the plan without thinking? Products that are in high demand should be easy to get to in stores, but the flow should also urge people to look around. For restaurants and cafés, plan how far apart the tables will be and how lines will form to avoid snarls. Try it out for yourself and ask your friends what they think. Small changes, like moving a display or putting up clear signs, can make the place feel better and work better.
Set yourself up to succeed.
Setting up your first business location is an exciting moment, but it also comes with some difficulties. You will be well on your way to making a place that attracts customers and helps you reach your business goals if you avoid these five mistakes: rushing into a location, underestimating costs, ignoring signage, ignoring lease details, and ignoring the customer experience.
Be patient, make sure your plans are perfect, and don’t be afraid to ask experts or teachers for help. The first place people see your brand will be its actual form, so make it count.
What’s the next thing you need to do to set up the business? Have you made any of these mistakes before? If so, do you have any advice to share? Leave a comment below or send this post to a business-starting friend. To help Aussie businesses do well, we want to keep the conversation going!
