I recently finished consulting on my fourth Vietnamese owed nail salon. This is an interesting market niche. The first salon I designed lead directly, by referral, to the other projects. In the Asian communities, word of mouth and personal referral is king. The better the job you do, the more opportunities you will have in the future.
Designing the Salon
A salon is a model of larger and more complex projects. A 1,500 square foot salon has all of the elements of larger retail business.
My biggest challenging these projects has been language.
Most of my clients speak English as a second language. My experience with Vietnamese is ordering by number off of a menu. As in all consulting, it is very important to listen carefully and give your full attention to understand and to be understood. There is no short cut to effective communication.
The second biggest challenge is the governmental process.
Too often I have been called in to fix a permit issue because my client started to build without the proper permits. The process of securing permits is confusing and mysterious to people outside of the building industry. The rules and requirements are always changing and vary from city to city.
Three recommendations for business owners planning on renting commercial space:
First, contract with a commercial realty agent to represent you, to help with finding space, and to represent you in the lease negotiations.
Second, I recommended you have your lease reviewed by an attorney specializing in commercial real estate.
Third, I recommend that before the lease is signed is that you create and sign a Letter of Intent with your landlord. The Letter of Intent will define the general lease terms, will set the time or date for rent to begin and will allow you to develop plans and get building department approval. The typical date for rent to start is when your occupancy begins. The time between agreeing to rent a space and moving in can often exceed 3 months. The money saved in rent will more than pay the architectural fees, and that is always a good thing.
What Costs Business Owners More Time and Money Than Necessary
I find that my clients have found a space, signed a lease and are paying rent before contacting me. Now my client is required to pay rent on the space while the permits are secured and the space is built out. This process is costly and creates unneeded job related stress.
How to Save Money and Get Your Project Built
It is cost effective to secure the assistance of the appropriate professionals before starting a project. What you spend in fees you will save in unnecessary rents and possible fines. The professionals spend time staying current on the requirements and regulations that affect their field. It is difficult if not impossible for anyone not involved in real estate and construction on a daily basis to be effective in negotiating the complex maze of property development.
