In an ideal world, a Party Plus store is about 300-350sqm, however we have some stores that are smaller than this.
Small vs Large - what's the difference?
A smaller store usually has lower rent than a larger store.
A smaller store has a potential growth and expansion problem as the business activity and turnover grows.
A larger store can have the "my goodness, this place is like a barn" factor during the early stage of business development. However is has ample capacity to be filled with more stock. That creates a better buying experience for your customers, and therefore greater turnover and potential for profits.
Why not start small then relocate?
This is absolutely possible, and at critical points of growth, smaller stores would certainly consider this.
However, the true cost of relocation needs to be considered well in advance. In many cases, the full cost of relocation in 5 years may still be more costly than paying higher rent from day one of operation. For example, if you need to relocate after 5 years, you have the following costs:
- stripping the existing store back to the way it was originally leased to you
- completely fitting out a new store
- removal of store contents
- relocation of services (eg phones, internet)
- lost sales during the changeover/closed period
- losing customers because they can't find you after you've moved
None of that is insurmountable - but usually that total cost will be far more than having a larger premises from day one.
Summary
A key factor with all aspects of owning your business is projected cashflow and ensuring you have sufficient working capital to see you through the early stages of development.
Location and premises options are always talked through in full with potential franchisees long before we get to the stage of signing leases.
