Plan Your Business - Negotiate Your Commercial Lease

I was talking with a young professional yesterday regarding the consulting business they want to open this fall. As we  talked about their professional/work experience, their education and training, as well as the areas of practice being considered, the question was asked, "Why do I need a business plan?" 

It was a good question and likely one that many entrepreneurs have considered, although it's unfortunate that in many cases it's only pondered for a brief and fleeting moment! For this entrepreneur, the business plan was needed for funding. That's frequently the primary motivator for developing a business plan. Having said that, I was also pleased to share a few other reasons why having a business plan was worth both the effort and the time that's involved.

Allow me to briefly illustrate the biggest reason why I believe a business plan is important. And perhaps you've observed that many businesses start and continue to operate without a business plan. I believe that is very true, and my client brought this point up in our conversation. However, it's also my observation that most businesses fail within the first few years of start-up! Is there a correlation? What do you think? I believe that there is and I'd be pleased to further explore this with you as you'll see mentioned at the end of this post. 

For those looking at signing or renegotiating their Commercial Lease agreement, this may be an opportune time to create a little more 'breathing room' for your business. Here are some additional helpful tips and suggestions from our friends, Dale Willerton and Jeff Grandfield with The Lease Coach.

Thank you Dale and Jeff.

Negotiating Commercial Leases & Renewals FOR DUMMIES

Commercial Leasing Tips for Commercial Tenants

By: Jeff Grandfield – The Lease Coach

For many business-owners, negotiating a good lease or lease renewal against an experienced agent or landlord can be a challenge. While an entrepreneur focuses on marketing and managing, savvy real estate agents and brokers are specialized sales people. Their job is to sell tenants on leasing their location at the highest possible rental rate.

As explained in our new book, Negotiating Commercial Leases & Renewals FOR DUMMIES (co-written with my colleague, Dale Willerton), tenants may go through the leasing process only two or three times in their entire lifetime – yet they have to negotiate against seasoned professionals who negotiate leases every day for a living. Negotiating appropriate leasing terms is vital for an entrepreneur as the amount of rent he pays will directly affect the business’ financial bottom line.

Whether you are leasing a new location for the first time or negotiating a lease renewal for your business, these are some money-saving tips for tenants: 

Negotiate for Free Perks: If your company will require storage on a temporary or permanent basis, you can often negotiate to receive it for free. Securing extra parking stalls, being allowed more space on the pylon sign, and having the caretaker change your lightbulbs or make minor repairs are small perks than can also be had for the asking. Some property managers will clean your carpets or your windows for a token charge. If you need small favours, ask the caretaker directly and then give him a generous gratitude gift when he does these extras for you. 

Catch up on Rental Arrears: It’s not uncommon for a tenant to find themselves behind it rent. It is very likely, however, that your landlord will accept a repayment program that is manageable for you. It’s even possible to have your rental arrears partially or totally forgiven as part of the lease renewal inducement package – depending on the individual situation. Ask, ask, and ask again. Even if you are forced to pay interest that may be acceptable. Negotiate for a payment plan to catch up. 

For a copy of our free CD, Leasing Do’s & Don’ts for Commercial Tenants, please e-mail your request to JeffGrandfield@TheLeaseCoach.com.

Jeff Grandfield and Dale Willerton - The Lease Coach are Commercial Lease Consultants who work exclusively for tenants. Jeff and Dale are professional speakers and co-authors of Negotiating Commercial Leases & Renewals FOR DUMMIES (Wiley, 2013). Got a leasing question? Need help with your new lease or renewal? Call 1-800-738-9202, e-mail DaleWillerton@TheLeaseCoach.com or JeffGrandfield@TheLeaseCoach.com or visit www.TheLeaseCoach.com.

                                                

What's been your experience?

Feel free to add your comments and we'd very much appreciate

if you would share this post with those in your circle of contacts.

QUESTION:  
Are you looking at writing your BUSINESS PLAN but finding that to be a challenge?

Over the years we’ve found that there is great value for an entrepreneur to put together their own business plan, yet we also recognize that writing one can be a daunting task! Perhaps you’ve experienced some of the challenges faced in writing a business plan. We'll work with you and assist in the gathering of information that you'll need to have in your business plan to effectively describe your business opportunity. This service takes a consultative approach to gather information from you and works with you to craft a business plan that's tailored to your needs.

For more information see:

Option 4 - “PVS - Business Plan Writing”

It's listed on our Website Registration page:

CLICK HERE