Business Success Blog

Thursday, July 20, 2017

Watch for Assumptions with Your Commercial Lease

There are potential dangers that a business owner opens themselves up to when making ASSUMPTIONS regarding what can be done from the location they've selected for their business. Zoning approval with the local municipality where the business operates will play an important role, but so will the provisions found within the commercial lease agreement that the business signs with their landlord.

We're pleased to provide a couple of related tips in this POST from our friends, Dale Willerton and Jeff Grandfield with The Lease Coach. Thank you Dale and Jeff.

Dale Willerton

Jeff Grandfield

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:

Define the Use Clause: It is extremely important that the tenant’s Use clause be defined (with the Offer to Lease and the Formal Lease Agreement) to include ever possible product or service you plan to sell or offer. Don’t assume that if your primary Use is that of a hair salon that you can automatically add a tanning bed or if you a chiropractor you can automatically offer massage therapy. Exclusivity on your Use clause (i.e. you are the only one in the commercial property offering these products or services) is also important.

Is the Asking Rent Too High? Rental rates are set by landlords to achieve a reasonable profit. Many tenants incorrectly believe that the landlord wouldn’t charge more rent than the tenant could afford to pay. You must distinguish between affordable rental rates versus inflated rental rates. Many tenants learn the opposite the hard way.

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 thank you in advance

for sharing this post with those in your circle of contacts!

QUESTION: Would having a BUSINESS COACH and MENTOR be Helpful to You?

IF the ANSWER is YES ... Take a look at our "NEXT Steps Program!

If you're looking for flexible and cost-effective Business Coaching & Mentoring, you'll like our “NEXT Steps - Program”. It's been created with you in mind, and provides 12 months of valuable assistance that designed to fit your busy schedule!

For more information see:

"Option 3 – “PVS – NEXT Steps - Business Coaching & Mentoring Program”

It's listed on our Website Registration page: CLICK HERE

Saturday, June 24, 2017

10 Questions for Commercial Tenants to Ask

Entrepreneurs and business owners are in the business of solving problems and making life easier or better for their clients and customers. One of the classic situations we've seen is where an entrepreneur has come up with what they believe is "an innovative solution" to what they understand to be "a significant problem". Prior to jumpIng into a business designed around solving that perceived problem, it would be good to test and ask questions that will better validate the potential business opportunity. Asking questions is a key to getting the information required to make your "GO" or "NO-GO" decision. Then if you're still undecided, look at refining your questions, keep asking others, and review the updated feedback. As someone once said, "If you want better answers ... ask better questions!"

When it comes to where your business will operated from, here are some very good questions you should explore before committing to a business location. Thank you once again, Dale Willerton and Jeff Grandfield at The Lease Coach for providing this extensive list of questions for our "Business Success" audience.

10 Questions for Commercial Tenants to Ask About the Landlord and the Property

By: Jeff Grandfield and Dale Willerton – The Lease Coach

Dale Willerton and Jeff Grandfield

As a commercial tenant, you will want to prepare yourself for lease negotiations with a commercial landlord. Educated entrepreneurs must ask plenty of questions in regards to leasing a preferred location … doing so better assures these business owners will not be taken advantage of and will achieve their maximum potential.

As The Lease Coach, we have been consulting with commercial, franchise, and retail tenants since 1993 and recommend the following “Top 10 Questions” that all tenants must ask during the negotiating process either for a new or secondary location. In doing so, you will better protect yourself, your interests and your investment.

Who is the landlord? Will you be dealing with a large institution; a bank or a small, independent, “Mom and Pop” landlord? Depending on your opposition, you will be using a different negotiating approach.
How long has the landlord owned the property? A long-time landlord will have gained knowledge and experience regarding the property. Typically, a long-time landlord will also retain interest in continuing to own the property and have more realistic rent expectations. Conversely, a new landlord may have a high mortgage and may look to his/her tenants to help cover that cost with high rents.
Where is the landlord physically located? A local landlord is often more accessible, thus making any dealings prior to and following signing the Formal Lease easier. One of our tenant clients was trying to personally meet with his landlord, a 70-year doctor, who, not only, continued to practice at his leisure but also enjoyed sunny holidays and was often not around. Obviously, this created difficulty with scheduling a personal meeting.
Is the person in charge of property management local? Ensure that your property manager is readily available to deal with any concerns you may have. Property managers may well look after multiple sites (not always in the same city or town) and cannot remain at one location on a full-time basis.
What is the building’s history? An older building may require further upkeep and maintenance, which tenants pay for in Common Area Maintenance (CAM) charges. If there has been a high turnover of tenants in the past, for any reason, this should raise a red flag for you. Also, has a similar-use tenant previously leased space within the property and either closed the business or moved elsewhere within the past 10 – 20 years?
Who is doing the leasing for the property? Knowing who you are dealing with will help you better prepare for negotiations. Is this a big leasing brokerage, a real estate agent or the landlord’s son? Real estate agents must follow a code of conduct; however, they often can only share what the landlord has told them. A less than reputable landlord doing his own leasing may tell you anything to get you to sign.
Who were the two most recent tenants to move in and when? You will want to approach these tenants and ask them how their lease negotiations went. If the leasing agent claims he/she has only recently acquired the listing and does not know, push for the details.
Who were the last two tenants to move out? When and why did they move out? Did they move across the street or did they close? As before, you will want to speak to these former tenants and ask for more details about their reasoning for leaving as well as their opinions of the landlord, property manager and the property itself.
Who is the property’s biggest tenant (the anchor tenant)? How secure is this anchor’s tenancy? The anchor tenant(s) typically attract the most traffic to a property so you will want to confirm they will be staying. Tenants in a strip mall located near one of our homes were recently caught unaware when the major grocery store anchor tenant moved out. Despite having a long-term lease, this grocer can often move their business but continue to pay the rent, thus disallowing any competitor to move in.
Is the building for sale? Building owners looking to sell their building will have different motivations with prospective tenants. Also, consider that you may like the current landlord but dislike the new landlord.

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

Dale Willerton and Jeff Grandfield - The Lease Coach are Commercial Lease Consultants who work exclusively for tenants. Dale and Jeff 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 visit www.TheLeaseCoach.com.

What's been your experience?

Feel free to add your comments and thank you in advance

for sharing this post with those in your circle of contacts!

QUESTION: When was the last time you took a look at your BUSINESS PLAN?

IF it wasn't within the last 6 months ... let's take a look at it together!

Be ready for when the next business opportunity 'knocks at your door' ... don't delay!
Let's make sure that you're ready to move forward!

If you're looking for feedback and suggestions to improve your business plan, and valuable input regarding how you present your opportunity to others, you'll want to use our “Business Plan Review” service. Let's explore this in more detail!

For more information see:

"Option 5 – “PVS – Business Plan Review”

It's listed on our Website Registration page:

CLICK HERE

Saturday, June 03, 2017

"Time will Tell" - Manage Time & the Business Well

When was the last time you used the phrase, "Time will tell" in conversation?

I was working with an entrepreneurial client recently, developing some financial projections for their business. It's a fairly new incorporated business operating in the construction sector. Naturally, like every entrepreneur, they're excited for its potential growth!

Perhaps you’re at a similar stage of business. Looking beyond the enthusiasm, one of the challenges at this early-stage requires a discipline to temper expectations with respect to personal remuneration so as to not jeopardize the stability and the ultimate viability of the business.

Will you succeed - will they succeed? It’s difficult to say, but at least this client was working on a three-year business plan that should see them through the start-up phase. "Time will tell" if they, and if you will be successful!

Yes, "time will tell” if success is achieved. Having said that, I can assure you that an entrepreneur will only be successful if they find ways to appropriately respond to the many changing conditions that will evolve as they operate their business. In addition, in order for 'things to happen' … something has to happen! Action, appropriate action needs to be taken when it’s required. As Napoleon Hill said: "Do not wait; the time will never be ”just right.” Start where you stand, and work with whatever tools you may have at your command, and better tools will be found as you go along.”

Once you’ve started on your journey - keep your eyes and ears open. As things change around you, your plan needs to be flexible enough to allow your business to adapt in ways that will take you in the best direction. Watch for the changes taking place around you and those potential changes that are moving in your direction.

NOW, speaking of TIME … here are a few time saving suggestions from my friend, Garland Coulson - AKA "Captain Time”. Garland and I have worked together in the past with an Entrepreneur Training Camp where he’s shared his expertise with Time Management Skills Training. Now based on Canada’s west coast, Garland’s mentioned the other day that he’ll be in the Edmonton area just prior to mid-June.

FYI - For those interested in meeting with him, please make arrangements by contacting Garland directly. (Telephone: 778-441-4145 or Website: http://CaptainTime.com )

Drawn from his 25+ years in mastering time management, Garland Coulson suggests the use of a countdown timer. First, decide what you want to work on, and then how long you want to invest in that activity.

In his own words: "... if I want to spend one hour making marketing phone calls, I grab my timer, set it for an hour and push the start button. When the countdown timer goes off, I reset it for the next project and start again. A countdown timer is one of the simplest, yet most powerful time management tools."

Here are four reasons Garland offers as to why a countdown timer is so helpful to improving your productivity.

Full Time – it ensures the whole hour (or half hour or whatever time I set) is invested in the project I chose.
Focus – the deliberate setting of the one hour for the project keeps me more focused and makes me come back to what I was doing after an interruption.
Reminder – it reminds me when it is time to move on to the next project. This makes sure that I am spending the proper amount of time on each project.
Value – a timer teaches us how to value our time and helps us understand how much we can get done in a very short time.

Thank you Garland for this great tip on how to improve our use of time.

What's been your experience?

Feel free to add your comments and thank you in advance

for sharing this post with those in your circle of contacts!

QUESTION: Would having a BUSINESS COACH and MENTOR be Helpful to You?

IF the ANSWER is YES ... Take a look at our "NEXT Steps Program!

If you're looking for flexible and cost-effective Business Coaching & Mentoring, you'll like our “NEXT Steps - Program”. It's been created with you in mind, and provides 12 months of valuable assistance that designed to fit your busy schedule!

For more information see:

"Option 3 – “PVS – NEXT Steps - Business Coaching & Mentoring Program”

It's listed on our Website Registration page:

CLICK HERE

Monday, May 22, 2017

Team Trust in Commercial Leasing

There are so many ways in which 'success in business' can be linked to the concepts of 'teams' and 'teamwork'.

We've frequently used quotes from well-known entrepreneurs with respect to the importance of creating a team. One such successful entrepreneur was Henry Ford - founder of the Ford Motor Corporation. Here are two familiar quotes attributed to him:

"Coming together is a beginning. Keeping together is progress. Working together is success."

"If everyone is moving forward together, then success takes care of itself."

In a conversation yesterday, it happened that we were talking about the importance of finding and working with individuals and organizations where TRUST is built and a sense of true collaboration and teamwork exists.

The fact of the matter is:

"If we don't have trust, we don't have anything!"

This important message is extended to aspects of choosing your business location, as well as your approach to this very significant business decision. In this post we're pleased to include a few more valuable tips from Dale Willerton and Jeff Grandfield from The Lease Coach. Thank you for sharing of your expertise with our "Business Success" audience!

Negotiating Commercial Leases & Renewals FOR DUMMIES

Commercial Leasing Tips for Commercial Tenants

By: Jeff Grandfield – The Lease Coach

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:

Brokers … Friend of Foe? It is not uncommon for a tenant to believe that the real estate agent or broker is working for them. However, it should be noted that the listing agents’ commission is being paid by the landlord and even an outside agent may be sharing in that commission. Whether a landlord-paid agent can represent two masters you will have to decide for yourself. Brokers and agents do a great job but who are they doing that job for and who is paying them to do it? Even the most altruistic agent can’t serve two masters equally.

Size Up the Opponent: The fact is different leasing representatives are motivated in different ways. For example, an in-house leasing representative working on salary will be more concerned with your stability as a tenant. An outside realtor will finish the deal, collect his commission, and may never work with that landlord nor see you again. Sizing up your negotiating opponent and their personal motivation is part of a well-planned leasing strategy.

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

AND - If you'd like some free Success Tips on Team Building, take a moment to review the ones we posted on our Provision - Exploring Mentorship BLOG following participation in an event hosted by Futurpreneur Canada last year.

CLICK HERE to view the Post: "Seven Keys for Building Great Teams"

What's been your experience?

Feel free to add your comments and thank you in advance

for sharing this post with those in your circle of contacts!

QUESTION: Would having a BUSINESS COACH and MENTOR be Helpful to You?

IF the ANSWER is YES ... Take a look at our "NEXT Steps Program!

For more information see:

"Option 3 – “PVS – NEXT Steps - Business Coaching & Mentoring Program”

It's listed on our Website Registration page:

CLICK HERE

Saturday, May 13, 2017

Success Means 'Making a Difference'

I've shared this with virtually every audience that I've been privileged to address - whether it's entrepreneurial focused, or otherwise. This principle is just that important! What is it?

Find a worthwhile cause, one that you truly believe is making a difference, and then build creative ways of supporting that cause through your entrepreneurial venture!

For some, having their own business allows them to continue and expand the support they've provided to great causes in the past. For others, this is brand new territory! But it's an exciting opportunity to build on the things you personally value, align them with priorities for your business, and take that support to an entirely new level! Regardless of the path you take, be sure to incorporate that important step, and lend a ‘helping hand’ to some of the many organizations and good causes that are working hard to make a difference in the lives of others!

Here's one story that I'd like to share with you. It was several months ago that I was invited to be the keynote speaker at an annual community breakfast. Seated at my table were Art and Beth Brochu. As we shared conversation over breakfast, Art told me of the fundraising he'd been doing for the Children's Wish Foundation in Alberta. The longer I listened, the more I thought of how absolutely "awesome" this was, so I asked Art to keep me informed, and I promised to share an update with those in my circle of contacts.

So let me tell you just a little about the “Art Cycles for Wishes” fundraiser which is now underway in Alberta!

Art’s cycling journey will again be raising awareness and donations for the Children's Wish Foundation – a Canadian organization that's helped nearly 25,000 sick children and their families. Art will be riding his bicycle a distance of 5,300 km from Fort Hills, Alberta on May 1, 2017, through numerous communities across Alberta, and will conclude on July 20, 2017 at Edmonton City Hall.

Now, as if 5,300 km isn’t a ‘daunting enough’ goal, one that would cause many well-conditioned individuals to step back from the challenge, let me assure you that Art’s been ‘around the block’ a few times. This isn’t his ‘first bike ride', and he’s no rookie! In fact, in 2014, at 70 years of age, Art cycled 9,285 km across Canada for the same worthy cause!

As he did then, this military veteran will be speaking with audiences along the way about Post-Traumatic Stress Disorder (PTSD). As we’re now learning, PTSD not only affects "First Responders" - those in occupations such as Fire, Emergency Medical Personnel, Police and Military, but it can also affect anyone that’s experienced a significant lost. His hope in sharing this message is to help raise awareness of PTSD, it's impact in all of our lives, and the important message that ‘help is available’ to those affected.

Art Brochu has done a lot for this cause, but he's very quick to thank all who've supported their efforts. Many have jumped onboard: Alberta communities and Lion's Clubs International have banded with caring individuals along this route and beyond to show their support - hosting events along Art's cycling route, donating funds, and raising awareness in their local areas.

Art's adventure is now underway. It began with a rougher than anticipated start and a few unexpected delays. Add to that, some 'colder than normal' temperatures' and a heavy spring snowfall across much of the region. But it’s the warmth and generosity of people that continues to propel Art and his team forward. As has been said, "Wishes Work Wonders and create lasting, happy family memories."

To close, we say: “Great work Art ... You're making a difference; ride on!”

To follow Art Brochu and offer your encouragement and support during his Alberta Ride for the Children's Wish Foundation, please contact:

Art Brochu, “Art Cycles for Wishes”

P: (780) 975-3541

E: abrochu@telusplanet.net