Ask Jo Malone: What to look for when choosing a property for your business

Small business agony aunt Jo Malone on what to look at when renting a property for your business and how to make the most of your location without running yourself into the ground.

Dear Jo

I run a boutique jeweller on a busy High Street which gets plenty of passing trade.

My landlord has just upped the rent and I’m struggling to afford it.

I’m trying to work out whether I should move from my current space but am worried about losing clients.

What do you think?

Sadly, rent increases are often an unwelcome but expected part of trading on a busy High Street.

A rule of thumb is that your rent should be about 10% of your business turnover, so take this into account before you commit to a site.

What I would love to know is whether this rent increase was imposed with no notice, and is there any room for negotiation?

Before you do anything, it’s always useful to speak with a trade-property adviser who can offer guidance if they believe that the rent review was unfair.

You appear to be fairly well-established so be confident that any new location is near enough for your current clientele to follow you or it’s within an area where you will attract a completely new, but similar, type of customer — ideally you need to ensure both.

That said, if you want to stay put, one temporary option to consider would be to team up with another retailer whose products complement yours and who is willing to share the space.

If this is possible, try to persuade your landlord to cap the rent for a fixed period, meaning no more surprises.

Alternatively, can you generate more activity and cash flow by hosting jewellery parties for family and friends, or can you secure a presence at local fairs to gain exposure? What opportunities are there for you to pop up in different places while maintaining your current shop?

If you do find yourself having to relocate, view it as an opportunity to evaluate the needs of your business and develop a clear strategy.