Busby and Fox confirmed the profile of its typical customer. We then produced a list of 5 target locations checking each contained a high density of potential Busby & Fox customers, using the Hatch Location Insight tool. We compared the demographics for these new towns and checked they were similar in makeup to that of the towns they currently traded in. We then set up property alerts in each one and helped Busby & Fox notify local agents of their property requirements.
The property search quickly identified a suitable option in Marlborough, Wiltshire. Cath Kidston had unfortunately gone into administration and had to close several of its existing stores, 142 High Street, Marlborough being one of them. We connected Busby & Fox with the landlord and they met for a viewing. The shop ticked all the right boxes in terms of location, pitch and configuration.
Busby and Fox then used our Affordability Checker to run the numbers and make sure the turnover achievable would lead to a healthy profit.
To assess profitability, all upfront and ongoing property costs need to be factored in. Not just rent, rates, insurance and service charge but also capital expenses like legal and professional fees and fit out costs, which we provided benchmarks for. The inputs were then built out into a cash flow equal to the lease term showing an early break even point and increasing profitability as the lease went on.
Hatch gave guidance on the offer and negotiation process and Busby & Fox were able to secure the property on very competitive lease terms. Now all that was left was to find a solicitor and using the Hatch Community Hub, Busby & Fox connected with a suitable and affordable solicitor to agree the lease on its behalf.