OT: Business Advice Needed

[BurtHorn]

I’m a small business owner. I have a commercial equipment rental company in North Texas. I’m currently a 1 man operation. I’m looking at upgrading my location to across town. There’s better opportunity for growth. Better visibility. Better security. Customers can actually find me without getting lost. The commercial building has AC/Heat (I currently do not). Parking lot is paved while my current lot is gravel (that’s a plus in my business).
There are more pros but the biggest “con” is that it would cost about $450-$500 more per month and I would likely have to sign a long term deal. Anyone gone through this before? Was it worth it? Thanks in advance.

 

[JobusRefill]

That seems like a small cost for the benefits you mention.

 

[LonghornLeghorn]

What is the average equipment rental revenue per customer and what are you clearing per rental after any variable costs associated with the rental? Putting it in context for how many additional customers you would need per month to clear the higher rent is sometimes a useful perspective. If you do decide to move, make sure you have enough working capital or reserves to withstand any temporary transition hiccups wrt moving. May see a temporary dip in revenue until your existing customers get reacquainted, etc.

 

[dragworm]

Weigh the extra cost against any likely added revenue, then add in the non monetary things that you mentioned.

 

[solman1972]

I’m a small business owner. I have a commercial equipment rental company in North Texas. I’m currently a 1 man operation. I’m looking at upgrading my location to across town. There’s better opportunity for growth. Better visibility. Better security. Customers can actually find me without getting lost. The commercial building has AC/Heat (I currently do not). Parking lot is paved while my current lot is gravel (that’s a plus in my business).
There are more pros but the biggest “con” is that it would cost about $450-$500 more per month and I would likely have to sign a long term deal. Anyone gone through this before? Was it worth it? Thanks in advance.

I always say to run lean as long as you can before you jump into a long term lease. Sounds like there are a lot of cons to staying where you are. Make sure you have calculated that 450-500 more per month correctly. Commercial landlords are semi-desperate in certain areas so maybe you can sign a one term deal with an option for years 2 and 3.