Wednesday, January 18, 2012

Strategic closing: Sometimes necessary

     Most business plans include an "exit strategy".  sometimes a business needs to close with a specific plan to reopen.  Reasons could be: 1) Another better leasing opportunity:  The economy continues to pressure landlords to reduce leases costs to get spaces occupied.  A business needs to continue to sample the market to find these deals and consider the value to a relocation.  As people sometimes walk away from a house these days one can walk away from a lease  if circumstances make this option attractive.  There are many things to consider including tax implications but this option is increasingly attractive.
     2) How long it will take to turn a profit:  It is the norm to work for a long time without paying yourself a dime and often if the original business plan is sound the current lacation can be made to work if your personal circumstance can allow you to hold on long enough.  sometimes one re-evaluates when the profitable date might happen and it is not possible.  You can shutter a business and sell online of at flea markets of Expos to keep alive and re-open with better circumstances and get profitable sooner thaan if you held on in the first location.
     It is good to have cheap rent but if there is sufficient business the higher rent is sometimes better.  The bottom line something you have to consider.

No comments:

Post a Comment