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I’ve noticed is that when people plan to open a brick and mortar business, they usually do a great job estimating the obvious expenses. They know they’ll have rent, utilities, insurance, and renovation costs. Those are expected. It’s the expenses beyond the lease that catch people by surprise.
When I opened our retail location in East Harlem, I knew what the space was going to cost. What I underestimated were all the operational expenses that came with running it every day.
Things like phone systems, internet, security, software subscriptions, supplies, furniture, and ongoing maintenance. If something breaks, leaks, or needs to be replaced, you’re responsible for it. Even the small things add up over time.
Because our space also hosts networking events, there were costs I hadn’t fully appreciated until we opened. Tables, chairs, serving pieces, glassware, equipment, and everything needed to welcome guests. Individually they weren’t overwhelming, but together they became a meaningful investment.
Then there’s the biggest misconception I see. Opening your doors doesn’t mean customers automatically walk through them.
A physical location still needs marketing. It still needs advertising. It still needs consistent visibility so people know you exist and have a reason to visit. That isn’t accomplished with one social media post or one successful marketing campaign. It’s something you commit to over time.
That’s why I encourage business owners to think beyond the cost of signing the lease.
Ask yourself whether the business has enough working capital to support operations while it grows. If sales take longer than expected, can you continue operating comfortably? Do you have enough cash reserved for the unexpected expenses that inevitably come with running a physical location?
I’ve found that the businesses with the strongest foundation are usually the ones that planned for more than just opening day.
The lease is only the beginning. Operating the business successfully is what comes next.
xoxo
Cyn
