Is this a good offer?
By Cutie18f
@Cutie18f (9546)
Philippines
February 2, 2012 9:28am CST
Lately, I jumped into an offer to use one of the small spaces in a food court situated on the 3rd floor of a small building. It has an escalator leading to the food court where there are still many spaces vacant. In fact, there are only three existing food stalls there and the rest of the stalls are vacant. Since it opened eight months ago, the food court never really became a hit. Only a few people go there and the existing store owners feel like pulling out. That is why the owner of the building thought of making the use of the spaces for free for three years. I heard about this and so I talked to the owner who gave me one of the spaces to be used for free! My real purpose in having this space is to have a sort of an "office" or place where I could render services. But since this is a food court, I bought a glass counter in which I placed some junk food for sale with very low prices. I know that I am not going to make much profit from this. I had already invested some money in buying the glass counter and the junk foods to sell. Do you think I am losing money here? Am I being foolish in getting this space? What do you think? Would you have done the same thing if you were in my situation? What are your suggestions that I would do with the space so I can make the most of it? I'm listening.
3 responses
@beamer88 (4259)
• Philippines
3 Feb 12
Try to make an assessment of your operating costs. Although the stall is rent-free, what about the utilities like electricity, water, phone bills. Do you pay for your parking? If you commute, how much do you spend? Things like these. Obviously selling junk food at cheap prices wouldn't cover these costs. But you mentioned you plan to utilize the space also as an office. What sort of services are you offering? This is actually the crux of the matter. Make a forecast or projection of the earnings you'd derive from these services then compare it with your operating costs. You'll be able to have an idea if getting that rent-free stall a wise investment.
1 person likes this
@beamer88 (4259)
• Philippines
3 Feb 12
Tutoring and coaching are very much in demand nowadays. Make your projection even for the first 6 months. But don't you need a telephone or an internet connection so you could look for prospects or those needing tutoring could get in touch with you?
1 person likes this
@Cutie18f (9546)
• Philippines
3 Feb 12
Thanks Beamer. The good thing is, the place has centralized air-conditioning. That means we do not have to worry about fans or air-con. However, each unit may want to have their own electrical and water supply installed for Php 7,000. I do not need any electrical outlet at the moment because the lights and air-con which are free are enough for what I am doing right now. I do tutoring and coaching.
@bounce58 (17385)
• Canada
3 Feb 12
It's free?
Then I think it's a good offer! What kind of 'services' are you rendering?
I think that glass counter with the junk food was a great idea to be still within the theme of the food court. Even though you don't expect money from it, it establishes your business presence. Who knows?! That might become a side business that would take off!
@Cutie18f (9546)
• Philippines
3 Feb 12
Wow, I love that positive energy. Now I am beginning to affirm my decision. Yes, the space is offered for free for three years! As to services, I do tutorials and coaching, and yes, the chips are there to go with the theme of the whole place. I do need a place where I could tell my prospects where we could meet. My real office is actually my cellphone but I just need a meeting place and I think this one is a blessing.
Goodluck with your venture!
