Closing the store, but not the business
Wednesday, June 3rd, 2009Read a great article in the Wall Street Journal yesterday, in their “small business” section. It is entitled “Entrepreneurs Pack Up and Go Home”. It describes the recent trend of small businesses abandoning their “brick and mortar” locations and moving their businesses into their homes. The move is usually triggered by a big drop in business and the inability to renegotiate leases.
The main point of the article, of great interest to me as a business consultant, is that the move can be done, but requires many adjustments and some careful planning. Among other considerations, it is critical to check zoning laws in your neighborhood regarding any restrictions on operating a home-based business. One company mentioned in the article, a dancewear business, was really screwed by the local zoning board. Zoning laws vary widely, so don’t assume. Check it out.
Beyond zoning considerations, moving a business home changes the marketing dynamics. You can’t put a “sale” sign in the window any more to generate additional traffic. Marketing and advertising on the web is “doable”, but certainly different from advertising a brick and mortar store. Another area demanding careful thought and preparation.
Bottom line is that there is more to moving your business home than saving the monthly lease money. Like most business changes, some preparation in advance will help ensure that the move goes smoothly and that your business survives.
Interested in reading the article? Press here.
Considering the move home for your business? Already completed the move? Please share your thoughts and experiences!