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Discussion Starter · #1 ·
We are considering expanding and renting a location to work our t shirt business. We are not new to the business we are just thinking about moving out of our garage and having a store.


I understand the utilities and rent costs but I wanted to know more about insurance costs. About how much would liability insurance cost?
 

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We did just that. First is your rent, ours was Gross Monthly. That is a single price for everything. There is Net, Double Net and Triple Net and so on, check here: https://42floors.com/edu/basics/types-of-commercial-real-estate-leases

Just remember if you have rent plus CAM your CAM can go up every year an undisclosed amount.

For 1000SqFt we paid $1500 a year for insurance.

Your utilities may want a deposit which will be typically 2 months of service.

Having said all of that, prepare to get a ton of work from a storefront. We started out bumping along and just 2 customers are responsible for about 80% of all of our work today. Not just them but all the referrals and referrals on referrals.

One member here, Badalou, came to our shop one day and when he walked in he said "Wow, a REAL business!". Having that storefront legitimizes you in front of your customers. Even though there is nothing wrong with running it out of your house in the eyes of your customers, especially the new ones, you look like a real business.

Good Luck and let us know how it goes.
 

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Discussion Starter · #3 ·
We did just that. First is your rent, ours was Gross Monthly. That is a single price for everything. There is Net, Double Net and Triple Net and so on, check here: https://42floors.com/edu/basics/types-of-commercial-real-estate-leases

Just remember if you have rent plus CAM your CAM can go up every year an undisclosed amount.

For 1000SqFt we paid $1500 a year for insurance.

Your utilities may want a deposit which will be typically 2 months of service.

Having said all of that, prepare to get a ton of work from a storefront. We started out bumping along and just 2 customers are responsible for about 80% of all of our work today. Not just them but all the referrals and referrals on referrals.

One member here, Badalou, came to our shop one day and when he walked in he said "Wow, a REAL business!". Having that storefront legitimizes you in front of your customers. Even though there is nothing wrong with running it out of your house in the eyes of your customers, especially the new ones, you look like a real business.

Good Luck and let us know how it goes.

Thanks for the movitational words. Sorry but what is CAM?
 

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Discussion Starter · #4 ·
Okay, I have a unusual (unique) situation. We are going to a store front because a friend of mine has asked us to move into his building. He owes money on the property.

I am pretty sure it will go like this.

We will help pay for the property (basically rent) until it is paid off. After it is paid off we will split the profits 50/50 after monthly expenses. Basically I am supplying the equipment and he is supplying the building. It sounds simple but I am sure there will be details that we will have to work out.
 

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Yes, I must have read right over that part. LOL

These can include real estate taxes; property insurance; and common area maintenance items (CAMS)
What is important is they generally go up every year and there is no limit. If a unit in the place burns down then your CAM may have to cover it. We did a Gross Lease when we did ours so we had no surprises other than the landlord was a jerk.
 
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