Discovering a Business Opportunity from Temporary Café Transfers
As I have a 3-month’s travel plan, I thought it would be better to temporarily transfer the café rather than leave it unused. To my surprise, as soon as I posted about it, I received a flood of messages.
This sparked an idea 💡: What if I rented many low-cost properties, gave them simple renovations, and turned them into small shops—like snack bars 🌮, cafés ☕, nail salons 💅, and so on? Then, I could launch a “temporary collaboration model,” offering short-term, low-cost rentals to people who want to try “entrepreneurship.”
Feasibility of This Model
- Abundant Low-Rent Old Houses in Chongqing
Chongqing has many older buildings that fit the low-cost rental criteria.
- Current Work Environment & Support for Pop-Up Businesses
While the economy encourages pop-up businesses, daily rents in high-traffic areas aren’t cheap. For example, in Nanbin Road, it costs 60–150 yuan per night. Additionally, pop-up businesses require daily setup and teardown of equipment, not to mention good weather conditions 🌞.
- Young People Are More Willing to Explore and Experiment
Unlike previous generations who rushed to secure jobs after school, today’s young people are more inclined to take their time to explore and experiment with different opportunities.
Challenges of This Model
- Thin Margins
Short-term renters may not prioritize high revenue but will value low operational costs. This means individual shops generate limited profits for investors.
- Increased Risk for Investors
To make this model profitable, investors would need to scale up by managing more shops, adopting a “high volume, low margin” strategy. However, this also increases financial risks and operational complexities, including property maintenance and tenant management.
- The Need for a Robust Management System
Clear management processes and responsibilities are crucial to ensure smooth operations.