Every retailer at some point will choose to have their retail store renovated or modified. This will be required for a number of reasons including an expanded customer base, a change in the audience or personal preferences. However, before you begin any retail shop renovation in Singapore, there are a number of things that you have to consider.
Start this process by determining why you have chosen to renovate. What can you gain from the renovation and are your expectations achievable? Will the renovation process damage or harm the natural flow of the store? How much will this cost, is it affordable? And most importantly, will these changes help your business to become more competitive within the market. Here are some of the key questions to consider and how they can help you to ensure you have made the right decision.
Why are You Renovating?
The most common reason for a shop renovation in Singapore is to make the shop appear fresh and make use of any existing space. Maybe you are looking to update your brand, make space for new merchandise, widen your aisles to make more space for customers or simply refresh your old looking floors. It is important that you create a plan and timeline for the project to reduce downtime and ensure you’re operating as soon as possible.
What Do You Want Your Store to Look Like?
Unless you are a seasoned designer yourself, here you may need the help of an interior designer. Consider the different areas that you would like to change from your lighting and flooring to store layout and presentation. When undergoing this process, it is advised that you consider the opinions of your employees and customers. If everyone is completely satisfied with the store, it is fair to say that a renovation may not be required. Employees can provide you with valuable insight as they are continuously working on the front lines. They understand what works most effectively and also better understand your customers from their first-hand experience.
This planning stage is the perfect time to bring awareness to any unexpected costs that may occur. Get all of the key details about your building so you can order the right amount of paint, carpet and other designing items you may choose to lose. Take note of anything you may already have, as this will prevent you from coming to a standstill mid-renovation.
How Do You Plan On Financing The Renovation?
After you have received construction bids and add up your predicted costs for your project, you will be able to determine how you can finance the renovation. It is advised that you add around 15% to your total calculation. This will allow you to compensate for any unforeseeable incidents and account for all unexpected costs.
Once you have worked out your total sum, it is time to look for a financing solution. One of the best ways to do this is through a discussion with your banker. You may be able to get a 3 to 5 year loan with a good interest rate and monthly payments. If you have a good credit score, you may also choose to look an SBA guaranteed loan through your bank. These can be used for leasehold improvements and have no collateral if under $25,000.
How Will The Project Affect Your Business?
In the early stage of the project, you’ll want to compare the cost of remodelling to the benefit of increased sales you have predicted. If you are adding a new clothing room, then you will likely increase your sales. However, if your suit section is doing great per square foot, adding additional room will not guarantee an increase in sales. It is always important that you remain realistic throughout the project. By investing money into such a project, you send a message to your customers that you want to provide them with the best available options. Combined with a fantastic marketing campaign, you can create a sense of anticipation and have customers lined up outside for the chance to experience what you have to offer.