New Business Location

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GregnGra

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I'm setting up a new business and would appreciate some input on choosing the right location. The business itself will be in the marine/watersports sector and I'm torn between a cheaper large industrial type unit approximately ten minutes from the M50 or a smaller, more expensive unit in a coastal location. Any opinions anyone?
 
Why are you finding commercial property so expensive near to a coastal area. The property market's problems are not exclusive to particular areas or types of unit.
 
If you are offering something unique which is definitely not an impulse buy then go for the cheaper place. If you will be making a significant amount of your cash from peoplw picking up extras, e.g. they come in to look at surf boards and leave with sunglasses then you should pay up for the coastal rent.
 
I'd be astonished if you are finding it difficult to find a coastal location, given the number of empty units in every town and village in Ireland.
 
Difficult one to decided on.

If you located in say, Bray, then potential customers from Howth, Malahide may think it too far to travel, vice versa of located in malahide.

If in say Greenogue in rathcoole, rents are substantially cheaper but you run the risk of both sides of Dubin thinking you're too far away.

Another option is to look to where potential competitors are located and look to locate nearby. - This helps all business in the area as potential customers would fiund it more worth while to travel to see different options in the same area. - Same reason why car showrooms are now grouped together.
 
I think you could negotiate a rent in the Sandyford/Stillorgan Industrial Parks for around €9 (maybe less) per sq. meter currently. There are a few new businesses in the Stillorgan one which are a bit more "trendy" - Café Instore took on a building that was largely converted by Ambrose Glass, the Alfa/Fiat dealer and there is a very nice unit that was a shopfitters (with excellent showroom) right beside it. The units range from 6,000 to 10,000 sq. ft. (apologies for mixing my units!)
 
Just to clarify, my choice is between Howth (approx 1500sq ft) and Ashbourne (2500sq ft). The asking rents are around €30k and €20k respectively.
 
Where is the "need" for this business? Beside the sea or inland or does it matter? Great outdoors seem to have a watersports store in the heart of the city
 
The "need" would be both beside the sea and inland. However I do intend to hire some equipment so obviously the coastal location may be more covenient to the customer in that respect
 
It would seem to me that your business will be seasonal and in Ireland the main season will be June, July & August. Would it not be better to try and run it without a premises until you have traded for a year or work from a web site and exhibition trailer and which can be bought on Ebay for a few grand? (a months rent).

You could pump some of the 20K into marketing and advertising. I suspect that in an Industrial estate you will have very few customers. The business models that are succeeding in the current climate are all about ruducing overhead so you can tread water during lean times. The other alternative is to try and rent space in a school near the coast. You will be located in an urban area, have a ready market, 500- 1000 families and your busy time would be weekends and holidays, when the school is closed. I also don't think you have taken into account the running costs of your premises, rates, ESB, Phones ect and you will have to have somebody there all the time, when maybe you should be out chasing new customers. The premises should be a small part of the overall business plan/vision not the deciding factor. Good luck!!!
 
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