One of the biggest challenges a new enterprise will face will be absorbing high facility costs. If you are making loan or rent payments on a facility (likely meaning you are locked into a long term lease or mortgage), you will need immediate revenue just to sustain those payments. The allure of getting into a brick and mortar early on will be tempting but we’ve found its best to think long and hard about your facility needs and to explore creative options that help to limit your overhead and create a potential natural advantage.
Do you need a brick and mortar at all for your business? There are many business ideas that don’t require a storefront or permanent facility. It might be worth exploring those.
Do you have potential partners in the community who might be willing to store the assets of your business for you for free or cheap?
Does your church/nonprofit own space? Is it possible to use the space in multiple ways?
Right now we have CovEnterprises using all of these options, and some paying monthly rentals because their business simply demands it. There is no absolute right or wrong way to deal with this question.
In the end, considering various creative ways to address your facility needs might help you be more nimble early on and provide a greater pathway toward long term business success.