Mistake 3 - Signing a contract before understanding your construction costs
Just before COVID hit, two partners found a great location with plenty of parking for their new 6k sf events center. In their excitement, they rushed to sign a contract before understanding their construction costs.
Bear in mind that this was before all the inventory issues following COVID when we could still build out a space for $70sf. They were quite unprepared to spend well over 400k to finish out the space. Unfortunately, they didn't have the finances and weren't able to move forward with their dream. Instead, they are in litigation with the landlord.
Before sending a Letter of Intent and most definitely before signing a contract, it would be wise to engage a trusted General Contractor who can help you understand the potential costs of opening your new business location.
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