Opening a storefront is one of the most exciting steps an entrepreneur can take. It is also one of the most detailed. Whether the dream is a salon, a retail shop, a neighborhood grocery, or a restaurant, the difference between a smooth launch and a stressful one usually comes down to preparation.
Matanky Realty Group put together a First-Time Business Owner Start-Up Kit to help new tenants get grounded before they sign a lease. The tips below pull the most useful takeaways into one place, so a first-time owner knows what to plan for, what to budget, and what to bring to the table when the search for space begins.
START WITH A BUSINESS PLAN
There is an old saying that if you fail to plan, you plan to fail. A business plan is the outline of the whole venture, and it maps the steps from launch to growth to long-term success. It is also non-negotiable when it comes to money: nearly every lender and grant program will ask to see one before offering funding.
A strong plan usually includes a cover page, a table of contents, and an executive summary written last but placed first. From there it covers the company description, the values, mission, and vision, the products and services, the marketing approach, and the operations plan. It should also lay out the organizational structure, a personal finance statement, startup expenses and capitalization, and a financial plan with projections.
A tip worth repeating: use samples and templates as a guide, then make the plan your own. Free resources like SCORE (score.org) and planning tools like LivePlan (liveplan.com) can help a first-timer get organized without starting from a blank page.
KNOW YOUR COSTS BEFORE YOU SIGN
Rent is only the beginning. First-time tenants are often surprised by how many line items go into operating a commercial space, so it helps to map them out early. Common expenses include:
- Rent, paid as part of the lease agreement for the commercial space
- CAM (Common Area Maintenance), the shared fees that cover upkeep like landscaping, snow removal, and parking lot maintenance
- Signage for the storefront
- Marketing across digital, print, and media
- Payroll and HR, which is often the single largest expense
- COGS (Cost of Goods Sold), the cost of making the product or delivering the service
- Cleaning and janitorial services
- Taxes, including income, sales, payroll, and property
- Franchise fees, if the business operates under a franchise
- Memberships and miscellaneous costs, such as chamber of commerce or trade association dues
CAM in particular tends to catch new tenants off guard, so it is smart to ask how it is calculated before committing to a space.
Line Up Funding
Every business needs capital, which is simply the money required to start and operate a company. Funding can come from several places: traditional bank loans, non-traditional lenders, grants, angel investors, personal savings, and support from friends and family.
A few things first-time owners should know:
- Bank and SBA loans are common starting points. The Small Business Administration backs several loan types offered through SBA-approved banks, and it has historically offered emergency programs during events like the COVID-19 pandemic.
- Down payments are significant. Many lenders require 30 to 50 percent of the requested capital up front, and that money often comes from personal savings or from friends and family.
- Grants exist, especially locally. In Chicago, the Neighborhood Opportunity Fund supports commercial corridors in underserved neighborhoods, helping business and property owners fund construction or rehabilitation projects.
- Nonprofit lenders can help too. Organizations such as Somercor offer SBA 504 and SBA 7(a) Community Advantage loans and administer City of Chicago programs including the Small Business Improvement Fund and the Neighborhood Opportunity Fund.
One honest reminder from the kit itself: do your own due diligence on any lender or funding source, and treat this as general information rather than financial advice.
KEEP AN EYE ON CREDIT
Good credit does a lot of quiet work behind the scenes. It helps secure financing in the first place and it helps lock in a better rate once financing is approved. Before applying for major funding, it is worth reviewing personal and business credit, correcting any errors with the major bureaus, and giving scores time to improve. A stronger credit profile can meaningfully lower the cost of borrowing.
Tap INTO FREE EXPERT HELP
No one has to navigate business ownership alone. Several respected organizations offer mentoring and services for entrepreneurs at little or no cost:
- SCORE, a nonprofit tied to the SBA, provides mentoring, webinars, courses, and a deep library of online resources for new and experienced owners.
- The Women’s Business Development Center (WBDC) delivers programs and services designed to remove barriers and expand opportunity for diverse entrepreneurs.
Building a bench of advisors early makes every later decision easier.
COME PREPARED TO TALK TO A BROKER
When it is time to find space, a good real estate broker moves the process forward quickly, and the conversation goes best when a tenant arrives ready. Expect a broker to ask questions like:
- How much square footage does the business require?
- What are the preferred customer demographics, including income, households, and population?
- What is the rental budget, and how flexible is it?
- Is there a completed business plan?
- Have financial projections been created?
- Is there an architect, contractor, or attorney lined up?
- How long is the business planning to operate in this location?
Having answers ready signals that the business is serious and helps the broker match it to the right space faster.
COME PREPARED TO TALK TO A BROKER
Finding the right location for a business is where the plan finally becomes real. Matanky Realty Group represents business owners through the entire journey, helping with planning, site selection, lease negotiation, marketing and promotion, and retail and restaurant operations consulting.
This guide is a general starting point for first-time business owners and is not financial or legal advice. Always do your own due diligence and consult qualified professionals before making funding or leasing decisions.
Ready to take the next step? Visit our Contact Us page to submit an inquiry, call us directly at (312) 337-1001 , or email info@matanky.com to explore available commercial listings, connect with a Matanky Realty Group broker, and learn more or request additional tips on opening your first business.