Close but not closed
The past few days have been spent on working out the numbers with the lease data from 6130 and working on preliminary plan layout for the cafe based on the current floor plan.
There is obviously a lot of potential about the place but as we work closer to the realistic numbers, the burden of supporting 2797 sq ft of lease space on both levels becomes painfully clear – we would need to achieve downtown Toronto sales numbers to ensure some profits, and even with the bigger chains like Starbucks, the space to be leased would be difficult to justified.
We are pretty confident that we will make it work with just the lower level – even though the size is bigger than we wanted (about 1400 as opposed to 1000 sq ft), we would be able to overcome that through our products and services. One thing we discovered when speaking to businesses around Main St is that rental rates in general are low on Main St, and that is why most businesses are still surviving despite reduced hours and limited marketing.
We have asked Tammi(our agent) to speak with Sabrina(landlord) about the possibility of just leasing the lower level but it is clear that Sabrina wants to rent out the entire unit. I could definitely understand the rationale of that. But if there is anything I learned from my previous own business and corporate training, it is to trust the numbers and not emotions, particularly in the area of cash flow. I think at the end of the day, I must be able to meet my lease obligations while turning a profit, calculated risk instead of careless risk based on hopeful optimism.
Alas, looks like it is going back to the location hunt again 
One Comment to “Close but not closed”
Glad that you are financially prudent.
Yes, managing cashflows is definitely critical in any on-going busines.
