1.

Location Isn’t Just About the Address—It’s About Strategy

We’ve all heard the saying, “Location, location, location.” But what does that actually mean for your business? It’s not just about being on Main Street or in a trendy shopping center. A great location is one that aligns with your target market, supports your brand identity, and makes operational sense.

Start by thinking about your ideal customer:

• Where do they live, work, or shop?
• Are they more likely to walk in off the street, or are they searching for you online and willing to travel?
• Do you need high foot traffic, or would being close to other businesses or highways be more beneficial?

Also, look beyond just your unit. Assess parking availability, neighboring businesses, safety, noise levels, and local foot traffic at different times of day. And be honest with yourself: Does this space fit who your business is and who you want to attract?

2.

Understand the Lease Terms Like Your Bottom Line Depends On It—Because It Does

Commercial leases are very different from residential ones. They’re often longer-term, more complex, and filled with clauses that can cost you a lot of money down the road if you’re not careful. This is where you need to slow down and read everything—or better yet, bring in a real estate attorney or commercial broker to walk through it with you.

Key terms to look at include:

• Lease length: How many years are you committing to? Is there flexibility to grow or exit?
• Rent structure: Is it a flat rate, or are there annual increases? Are you paying a triple net lease (NNN), where you also cover property taxes, insurance, and maintenance?
• Tenant improvements (TIs): Will the landlord help cover the cost of customizing the space? If so, how much?
• Maintenance and repair responsibilities: Who handles what, and how much notice do you get for rent increases or property changes?
• Personal guarantees: Are you personally liable if the business can’t pay?

These are just a few of the big ones. One mistake many entrepreneurs make is signing a lease that sounds great on paper but ends up locking them into a situation that limits flexibility, drains profits, or becomes impossible to get out of if the business model shifts. You always want to plan for the best, but protect yourself against the unexpected.

3.

Plan for Growth, But Don’t Overstretch Too Soon

It’s easy to fall in love with a bigger, shinier space, especially if your current location feels cramped or chaotic. But here’s the reality—more square footage means more rent, more utilities, more furnishings, and more financial pressure. Before you stretch your budget, make sure the numbers make sense.

Ask yourself:

• Can your current revenue support this move and still leave a cushion?
• Have you accounted for slower months, seasonal dips, or potential economic changes?
• If the new location takes time to ramp up, do you have the cash flow to cover expenses until it’s profitable?

At the same time, you don’t want to limit your business by staying too small. There’s a balance between playing it safe and planning for what’s next. That’s why it’s smart to build flexibility into your lease when possible. Can you negotiate a shorter term with renewal options? Or choose a space that has additional units nearby you could expand into later?

Startup Business 101

Startup Business 101 is a company that helps people start and run a successful business. It consists of a Startup Business 101 Blog, Startup Business 101 Podcast, and a Startup Business 101 YouTu