3. Insufficient Market Analysis: Vision from Afar
It is sad to think that some Real Estate Companies could care less about your needs and focus on just filling vacant space. Some smaller companies will try to paint a perfect picture for you at a location that just won’t work.
A friend told me about a pizza shop that had just opened for business when the owner got hurt and was unable to return to run the business. The realtor called my friend out of the clear blue and said that his pizza franchise would do great at this location. The realtor emailed the info over and the deal was too good to be true.
He went to look at the property and it looked great. Good Traffic, nice Foot Traffic, friendly people in the neighborhood. He signed the lease. A few days later he delivered some equipment at night to only be set upon by some neighborhood thugs.
He ran for his life to only find out that it was common for that neighborhood to turn into a war zone after sundown. He told me that the previous owner had been stabbed, that is why he let the business go at such a ridiculously low price.
Solution: No Market Analysis is better than what you see with your own eyes and hear with your own ears. If you are going to invest in a property or location you need to see it at its best and worst. Don’t discount the power of a Mobile Food Business. If at any time the area sours you can pick up and move.
Use this space to describe your ideal location, including neighborhood as well as customers.