What is a popup shop and how can it help your business?
We’ve all heard the term “popup shop” in recent years but what are they and can they help your business? Well, if you have been selling goods online for a while and want to know how you would do in a real-life, bricks and mortar store without the 5-10 year lease commitment, then the popup shop is for you. A “popup” is another word for “short-term”—meaning, you come to an arrangement with a landlord to sell your stuff in their space for a limited amount of time, anywhere from a few weeks to several months.
Here are 5 good reasons to open a popup, even if you’re online
- Meeting your customers is always a good thing. You get immediate feedback by actual humans, as opposed to starred “reviews” online. This can create loyalty for your brand and the hope is that customers will then seek you out online when the popup is gone.
- Popups are great advertising. Create your own space in a part of town that works best for your brand. Everyone who passes by is a potential customer. Make it interesting!
- People are tired of being inside their homes. Shopping gives people a chance to feel normal again. A popup lets you craft an experience your customers will remember.
- Popups are cheap. Depending on size, duration and location, of course, popups can be super easy to set up and run. The space is there. All you need to do is fill it with your goods and tell people you’re there. Plus, they are a great way to get rid of older or hard-to-love online stock.
- Your popup can generate some serious revenue. Time your opening to something specific, like Christmas, Mother’s Day or the ski season, for example, and then choose the right location. Make sure people know how to find you.
And here are 5 (and more) questions to ask now that we’ve convinced you
Now that you’re certain a popup shop would be good for your business, here are five things to consider before signing on the dotted line. Keep in mind, our legal professionals can help you negotiate/review a lease and just about everything else you’ll need for a successful venture, like zoning information and permit applications.
- Where are you most likely to find your customers? A busy street does not mean it is busy with the people you want to attract. Research foot traffic where you live—and make sure you know exactly who will be passing by (i.e., students vs. office workers).
- Once you’ve found the best location, check for available spaces. Covid has left a lot of empty storefronts worldwide so there should be something available for you. Decide on a budget and how long you’d like to set up shop for. Reach out to the landlord.
- Ask the landlord a whole bunch of questions: When can you visit the space? How much rent would they want? What’s included (Wi-Fi, electricity, heat)? Is insurance needed? Or a deposit? Can the space be modified (painted, hang signs, etc.)? And just as important, can they guarantee that you can remain in that space for the whole lease? Sometimes a landlord wants to make sure that if a more permanent tenant comes along, you can be asked to leave with limited notice.
- What are your marketing plans? If you have an existing database of customers, consider getting in touch (abiding by all privacy laws, of course). Use your social media platforms and paid-for social media ads pinpointing the people closest to your popup’s location. Count on influencers, if they are suitable for your product. Remember, you can have the greatest, most beautiful popup in the world but if no one knows you’re there, it won’t be a success.
- Make your popup special. Add atmosphere, design, music and good coffee—all the things your customers can’t get online. Offer curbside pickup, contactless payment and easy returns. Provide one-on-one appointments, if that suits what you’re selling. Any way you can connect your brand with your customers, it’s a win!
The Take-Away
Running a popup is easy but there are formalities that must be put in place before you can open your doors. The rent has to be negotiated and a contract reviewed and signed with the landlord. You may need a certificate of occupancy and the zoning has to be verified. Plus there can be insurance, additional permits, deposits and even renovations in some cases. And if you’re interested in sharing a space with an existing tenant, give us a call because the rules around that kind of popup are different than if you’re on your own in the space.
LegalShield Canada can help you sort out the regulations and all the other details so you can just relax and enjoy the experience! And if you are a landlord, get in touch with us, too. We can help you sort out rent, conditions, and everything else needed to ensure the popup is a success for you both.
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Articles on the LegalShield.ca website are for informational purposes only and do not constitute legal advice or opinion in any manner. Laws mentioned in the articles vary from province to province. Any links to third-party sites in our articles are for general information purposes only and LegalShield is not affiliated with, nor does it endorse, the content of linked sites. It is always advisable to seek legal counsel—and LegalShield can help.