We have discussed the importance of the actual location of your business. High traffic areas that have convenient access are very helpful. However, a suitable location will often cost you quite a bit in rent.
Rent prices may range from $50 to $500 a month. The price you pay will all depend on the arrangement that you make with your landowner. Usually, the better the location, the higher the rent will be. As always, shop around to get your best price.
At our busiest stand we paid $200 a month from May to October. Our landlord did not ask for rent during the winter months when we were closed. In reality, we would have paid $300 a month all year round if needed. We had great business and were located in the middle of town. Nearby there nine baseball fields, a community college, neighborhoods, shopping centers and restaurants. The daily traffic count on the highway in front of the business was about 28,000 vehicles in a 24 hour period. At this particular location we had no problem averaging between 300 to 500 dollars in sales a day.
Whatever you work out with your landlord, be certain to have a contract or agreement in writing. If possible, agree to a fixed number years for your lease. Too many times, a snow cone or shaved ice businesses has been forced out of business and lost thousands of dollars in revenue after one season at their location. Try to get at least a one year lease with the option to renew for one to two years. This option will give you the opportunity to get a feel for the location before committing to a long term lease.
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321 Goldsboro Street
Newton Grove, NC 28366
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