Franchising Philippines » How to Get a Better Rent

A good location is always important. But sometimes, good locations cost a lot. There a few businesses that have good locations but are really getting it hard because of the rental prices. Here are a few things you need to keep in mind.

Research

Foot Traffic. This is an important aspect. Visit locations that you are prospecting for your business. Visit them on their strong days and also on their weak days. Mondays and Fridays are almost always the stronger ones. Tuesdays and Thursdays are the weakest.

Aside from strong days and weak days, traffic also have hours when it is heavy. Lunch times are usually the busiest when people are on their lunch breaks. But of course it depends on what business you are running.

Competition. Another important aspect is competition. See how much difficult it will be to build a business against the more established ones. They know a lot more from experience than you do.

Other businesses. How many other business are existent in the area. This might be a signal for you that it is a weak location if there aren’t much businesses in the area. Hospitals and Churches around are good indicators of a good location.

Negotiation

Haggle. There are a few things you can haggle with landlords, security deposits, advanced monthly payments, and escalation rates.

Note that the number of months that could be advanced to your landlord must not exceed three months. As for the escalation rate, the legally mandated rate is ten percent per annum.

The key here is to know how to negotiate, know the weakness of the location and use it to barter with the landlord.

Good luck!