New Kind of "Exit Strategy"?

"Retirement" looming? Ready to reduce hassles and worries, but not really ready for a rocking chair? Here’s a retail concept to consider.

We just heard about a new kind of “mixed-use development” (you know, retail shops on the ground floor, residences up above.) Some of the new townhouses being sold in a planned resort community come with a first-floor retail shop. The owner of the townhouse owns the shop space as well!

• The retail space and a powder room on the ground floor total 753 square feet.
• The two upper floors provide 1,935 square feet of living space (3 bedrooms, 2.5 baths). 
• A carport in the back contains the stairway leading to the living space. 
• A balcony on the second level overhangs the retail entrance on the street. 
• The townhouse owner can then choose to operate a shop in “their” space, or, be a landlord, and rent it out to another retailer. 

While a 3-bedroom condo might not be your idea of “downsizing”, the opportunity to also own the retail space offers some intriguing opportunities.

• Maybe you still want to run a small shop (perhaps a smaller version of what you’ve been doing for many years.) 
• The internet could balance out the seasonality of being in a resort community.
• Or, you rent out the space to another retailer, and receive the rental income. 

In any event, you still have a place to live, plus equity in the property, and could benefit from any appreciation in its value over time. 

As we thought about it more, this may be a concept that already is happening in a variety of settings other than a resort community. 

• Perhaps a college town? 
• Or, in one of the “lifestyle centers” that are being built/redeveloped in suburban communities? 
• Or, maybe in the town where you already live?

We think it's a fun new wrinkle on an issue facing many owners. All part of “making the business work for you!”

Might it be "an exit strategy" to look into?

Retailers: Is Now the Time to Sell?

It's that time of year.  Retail owners are asking themselves, 

• "So, shall I really keep doing this? Do I want to sign more leases? Guarantee more loans?"
• "Or, while I still have my health, is now the time to sell?"

When pressed, many owners confide, "I plan to sell the business in 5 years or so." (And yes, there are owners who have been saying that each year for the past few years. It's the rolling 5-year exit plan!)

Whether or not this year is the time for you to sell, we believe that every year is the time for owners to investigate their options. 

To help get you started, The Retail Owners Institute has developed a specialized free microsite called Sell My Store, Please!  There you'll find some tips that are practical, or thought-provoking, or maybe even inspiring. 

We encourage you to be pro-active about your own exit strategy. 

There are 3 kinds of owners out there; which one do you want to be?

1. Owners who make things happen.
2. Owners who watch things happen.
3. Owners who say, "Uh...what happened?!?"