# How much rent is reasonable?



## Ben83 (Apr 12, 2013)

Hi all -

I just lost out on a leased property that was on the high street with a decent rent (£17,500) but relatively small site (650 sq ft). There's another site a few doors up that's 1050 sq ft and nearer the main action of the town, but the rent is £27,000. I figured I may be able to get them down to £24k, but still thinking that's too high a rent for a new business. Business rates are an extra £200 pm too.

I've estimated, based on a lot of market research in the area, that a cautious estimate is that we'd get about 180 people in the shop a day. We plan to serve breakfast and lunches too, but do you think we'd have a decent chance of covering the rent and making a small profit?

Grateful for thoughts and of course happy to give more info to help you advise.

Cheers,

Ben


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## radish (Nov 20, 2011)

I think as you go over £20K it starts to become more risky. You should do some cash flow projections to see how you would cope with various scenarios e.g. what if you only got around 100 people for the first six months?


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## Ben83 (Apr 12, 2013)

Thank you. That's my concern. I felt comfortable with £16k rent because the footfall is good. But with a rent that high we'd certainly need to hit the ground running.

Any other thoughts welcome.


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