We’ve been working on finding a physical space for THE STUDIO for a few months and it’s been a wonderful learning adventure. Zoning regulations, tenant improvement dollars, load rate, letters of intent - so many moving parts that I never knew before now! Big props to anyone who has their own physical space👏🏽👏🏽👏🏽
We found a perfect location on The Westside that we were so close to signing on, but ultimately had to make the tough decision to walk away.
What you might not know about commercial leasing is how much the small business owner takes on personally. We are responsible for personally guaranteeing the term of the lease on the space, which means that we agree individually to pay the full amount of the 3 year lease regardless of how we’re doing as a business. Right off the bat, that meant we were committed to $110,000+ per year in rent alone. There were still utilities, supplies, furniture, overhead, etc. in additional expenses to account for.
After speaking to a few advisors and mentors, we kept receiving the same feedback - start smaller. For a creative mind, it’s a struggle of vision vs. reality. In our heads, getting money in the door is never an issue if the place is cool enough, but the reality is that a following takes time to build. It was difficult to let go of the vision we’d built in that space, but it was the right decision.
We’re back on the search, but not discouraged! The vision is still alive, simply scaled for success. We’re looking at smaller spaces in more up-and-coming areas to keep rent costs lower. The search continues!
As always, thanks for joining in our adventure!