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This business coaching episode will teach you how to find a location that is perfect for your business.

Results-Focused Training, Tools, and Workshops from Expert Business Coaches.

Featured Coaching Excerpt - Notes & Transcript, Part 1
  • Lesson Nugget: If you can use a space that is "non-desirable" to many and make it work for you, you can possibly use that leverage to have flexibility on your lease and let you take steps in your commitment to stay there rather than leaps.
  • Property Type #4: Multi-Family: A building or structure that is designed to house several different families in separate housing units.

[MUSIC PLAYING]an

 

-One of the things I've found is you'll have these spaces that you'll drive from the road-- my wife and I will be driving down the road. We're driving with the five kids in the car, just trying to maintain sanity for business coaching.

And we look. And we gaze. And we try to see, we're like, what is this over here? And then we quit looking and we never go by. We just drive. What is that place on yonder? And then we don't ever go by.

 

-There's going to be an advantage to you also though, if you don't need that frontage area. And you are maybe a somewhat industrial or office type of use, and you want flexibility. If you find kind of the way you did with your house, where you've called that builder that's figuring out a place that they can't sell.

If you can figure out a place that maybe a landlord can't lease, and you get some flexibility. You're not having to sign a five-year lease. But you get the kind of space that you need. And you can do a month-to-month. Or you can do something where you get an out in your lease. You pay a penalty to get an out. Those kind of business coaching things allow you to take steps rather than leaps.

-OK. Every one of these properties we're identifying does have a few.

-There could be an advantage for you if your situation fits that.

-Final one here. The chronically vacant overbuilt restaurant that no one can see from the road. Class A standalone building business coaching.

In Tulsa we have a place of kind of Restaurant Row. And it's over there by the mall. And I think it used to be like an Applebee's. And then it was like some other kind of steakhouse. It's right of off 71st, kind of right by there by the QuikTrip between Memorial and Mingo.

And it's always-- and then it's like a steak place. And then it's like-- but it's always-- What is the deal with that?

-What we're seeing with trends in the restaurant business is that the smaller square footage makes the money. So there's a little sweet spot. And years ago, built bigger restaurants that fit more people. And they sold cheap food. And now that people are more conscious of what they eat, that smaller environment works.

So that's why you see those large steakhouse kind of buildings. Business coaching lesson: When those chain restaurants do go out of business, it's very hard to fill up that building, because most of the restaurant models now just don't make money in that big environment.

-There was a place in Tulsa. I was trying to sketch a little bit. There was this super elaborate building, it was like a steakhouse, with this log cabin motif going on here.

-That used to work.

-And then it was there. And finally they just blew it up. They literally blew it up. They knocked it down because they could not lease it.

I want to say this building might have been like 15,000 square feet, just to be specific. And everybody kept leasing and leasing and leasing. And you're saying the smaller restaurant is the one that works.

-Just to give you a frame of reference and business coaching advice, the Chipotle model is the most successful model in the restaurant business right now. It's the casual fast. And that space with kitchen and everything is no more than 3,000 square feet.

-Bam! You heard it here, folks. Braxton Fears. This guy knows his stuff. Unbelievable.

Now we're moving on to property type number four. OK. We're moving into multifamily business coaching.

This type of property can look like a duplex or a large apartment complex. Braxton, would you recommend that an entrepreneur offices out of this type of environment, ideally?

-Well, not offices. No. This would be for the business owner that is a real estate professional. If they're going to buy a multifamily investment, they can be good investments. But as a tenant, unless you're gonna live in an apartment building, that's not a place that you want to spend time on.

-Now I actually started my first business out of this type of environment, over at the Fountain Crest apartments at 71st and Lewis. Could you explain to me why brides and grooms, and potential corporate clients were reluctant to meet me for a consultation in my apartment?

-Yeah. Cause it's sketchy. That's weird.

Now of course, starting your business out of your home, that's a step. I'm always in favor of a step. And having a home office to get your business going, and up and going. But if I remember correctly, you started meeting people at Panera Bread. And you took that step. And then you figured out the next step after that.

But if you call people to your apartment to meet with you, they're going to be sketchy with you.

-It kind of leads me into this, because when I was in my apartment, I used to suggest that people would meet me at McDonald's before I discovered Pan Era. If you are in a situation where financially you cannot afford an office, you cannot afford industrial, you cannot afford any payment outside of your cost of living, I mean, you cannot afford any building at all, would you recommend you meet people at Starbucks or Panera?

Cause in commercial real estate, you meet people everywhere. Would you recommend you do appointments at a Panera? Is that OK?

-Sure. It's OK. It's not something that's probably going to be sustainable for a long time as you grow. But that's a good first

step.

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Featured Coaching Excerpt - Notes & Transcript, Part 2
  • Regus is the largest provider of executive suites, office space, virtual offices, etc... -Regus.com
  • Property Type #5: Property that does not fall into the previous classifications.
  • Lesson Nugget: To get started, drive around your area and determine which kind of real estate is best for your business, then, see what is available in your surrounding area.

 

-Hypothetically, if a friend of mine, we used to meet five to 10 clients per day at Panera because he couldn't afford to lease an office space for a struggling young DJ business. What is an alternative office space that you might give business coaching or recommend for a man or woman that may have done such a thing? Or do such a thing?

-The next step after Panera Bread?

-Yeah, hypothetically, I mean, not that I would have ever done this, but if you would be somebody who's growing a business and you're meeting people, five or 10 people a day, and you're literally at Panera Bread. My friend, he's at Panera Bread all the time, to the point where it's awkward.

-Not you, just your friend.

-People I know who make poor choices. What would you recommend via business coaching as a next step?

-Next step? In most markets, Regus is doing a really good job of providing month to month leases. And you can get a 100 square foot space with a conference room, like a common conference room, and you can schedule those things. You can get something for $150, $200 dollars a month, all bills paid.

-Regus.

-Regus.

-R-E--

-Yeah, they do well.

--G--

---IS.

---IS, Regus. Now, property type number five. Property type number five. Business coaching for miscellaneous other properties. This is like the 25% are kind of, we didn't cover. But they're ones, we just want to kind of make sure we address those. That would be like, a hotel, a hospital, a movie theater, nursing home that kind of thing. Vans down by the river.

Yes, there's a lot of other properties out there, but you really want to steer clear of those if you're running a business. You probably don't want to lease-- maybe a floral shop could lease from a hospital. But other than that, you probably don't want to-- final recap thought. If you're somebody right now and you're looking to lease space, and you need kind of step one to get started, what do you recommend step one is? How do I get started finding the right space for my business?

-Well, drive around and just kind of take a look at the area that you want to be in. Ultimately, if you really are going, man, I just don't know. I need some business coaching or help with this. Do find somebody that's a broker, somebody that you trust. Maybe you have a real estate agent that you worked with on your home.

Don't hire them, but ask them, hey, do you know somebody that you think is a solid human that is a commercial real estate broker? They're not going to cost you anything to have them represent you. They'll get their commission from the landlord. But just make sure you're very clear with them. Just say, I want flexibility, if that's important to you. Or I want this and I want that. Be very, very clear with them. Don't call them until you're really ready to tell them exactly what you know that you want.

And then just understand some of the principles we talked about so that whenever they throw out jargon like triple net, or when they throw out jargon like full service or per square foot per year, that you know what they're talking about. And then, try to get as specific as you can with them. And then trust them to find something that's going to work for you. But, if you ever feel like you're under pressure by them, maybe they're not the right person for you.

-Well, I would say, and I worked a few for a while and I kind of came with my own theory, but my thought was if you call three brokers and you set up breakfast or lunch meetings with these three people, and you tell them all, this is how much square footage I'm looking for, this is how much I'm willing to pay per square foot, here's the type, and here's overall just my budget, I feel like if you have at least that knowledge, you can have the same conversation. But if you have at least three brokers you're talking to, you can find one that's a good fit, usually.

-You bet. And it's tough if you have brokers that are just from the landlord's side of things. They're the ones that are listing it. They're going to be loyal to that landlord because they want to make sure that they look good with them. But it is nice to have your own person that's just on your side. And you know that they're not just out for a commission, but they're out to help you and to build a long term relationship with you. Somebody that you already have a relationship would be ideal.

-And really, with as far as the broker goes here, I just want to make sure we're clear on this, you can find a broker that represents the buyer and a broker that represents the seller.

-Business coaching lesson: Other way of looking at that, if you're a business that's leasing, you've got a broker that's representing the landlord, the person who already owns the building. And then you've got a broker that's representing the tenant, which is you. You're the business, you're going to be the tenant. The tenant is the person that their business lives in that space.

-So you can tell somebody, I'm looking for a tenant broker?

-Yeah, I'm looking for tenant rep broker or a tenant broker, yes.

-So what we could ask for again, is that we're looking for-- I just want to make sure we're giving you some clarity here-- a tenant broker rep. That is what you're going to be asking for. And if you do these things, you'll be off to a good start.

And as always on Thrive, we're here to help you learn everything you need to know. So we have a lot more powerful training about specific ways you can lease space. But Brax, I want to thank you for your time for going over those property types and helping with business coaching, man, I really appreciate it.

-You bet, thank you.

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