How to Get A Retail Location With No Money Down

Learn how to get a retail location when you have no money.

Instructions

Difficulty: Easy

Things You’ll Need:

• Basic Negotiation Skills

1. If you are thinking of opening a retail business but have no money in the bank, there is hope. Once you determine where you would like to open your new location, start by contacting the owner/manager to find out all of the details on the property. How long it's been available, if they're willing to negotiate terms, etc.
2. If they seem even slightly anxious to rent this property, odds are this technique will work.
   Your next step is to meet with the owner/manager at the property. Look at the property from top to bottom. Find out the terms, such as are any problems that arise your issue or theirs. Believe it or not, many commercial property owners require the tenants to take full responsibility for the location when they are leasing. You may want to rethink the property if you will be required to pay for any repairs needed. Many times, issues will arise and anything major could ruin your business, especially if you're still fairly new.
3. When you know this is the property for you. Simply ask the owner/manager if they would be willing to give you a "grace period" on the rent to help you get the business off the ground. A grace period is simply the amount of time they will allow you to go without paying rent. Many times this is easily negotiated if you are willing to sign a longer lease. If they want a one-year lease, tell them you will sign an 18- or 24-month lease in exchange for 90-days grace to get set up. This usually works very well.
4. Property owners are willing to do just to get someone in the building and even more so because they know they'll have a tenant for an extended period of time. There are many different ways you can work this technique, it will really depend on how motivated the owner is. I once set up a deal that gave me 120 days with no rent in exchange for making a few improvements to the building and only adding an additional 6 months to the lease!!
5. Don't be afraid to try this technique. It is in no way "bad business." The only thing it may be is "NO Business" if you are unwilling to try!

Tips & Warnings

• If you are not comfortable with face-to-face negotiations, you can simply wait to call the owner after you have seen the property. When leaving from the meeting with the owner, tell them you will get back with them after you think it over. This works for two reasons, they feel you may not want the property (which will make them more willing to negotiate) and this gives you a chance to negotiate over the phone instead of in person.
• Don't give up just because the first try doesn't work. There are TONS of retail property owners willing and ready to get you in with no money down! I know from personal experience, it will happen.