Priorities and Penalties that Affect Your Business

One of the quotes I've frequently heard and used when presenting to groups on the topic of Business Planning is:  

"Failing to Plan is Planning to Fail!" 

There's a lot of truth in that little saying. But why is it that we so frequently put our planning off to some undefined time in the future? When you think about what's at stake with the potential launch or expansion of a business ... why wouldn't you take some time, on the front end (as it were) to reduce the potential of things going horribly wrong further down the line? 

Perhaps it's because there are so many things calling for our attention that we fail to give proper attention to the things that really matter - the PRIORITIES. When we miss the important priority items, there is frequently a price to be paid - a PENALTY that's difficult to avoid.

Planning can help, and completing a proper business plan can reduce the chances of missing some of those priority items. And for those looking at signing or renegotiating their Commercial Lease agreement, the following article from our friends, Dale Willerton and Jeff Grandfield with The Lease Coach may also be helpful for your business. Thank you once again Dale and Jeff.

Negotiating Commercial Leases & Renewals FOR DUMMIES

Commercial Leasing Tips for Commercial Tenants

By: Jeff Grandfield and Dale Willerton – 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, 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: 

 Overholding Penalties: Please read this carefully. Most lease agreements contain an Overholding Clause (or a Holding Over Clause). This is the portion of a lease agreement that states the base rental rate and Common Area Maintenance (CAM / Operating Costs) adjustment at the end of the lease term. Should the commercial tenant remain leasing on a month-by-month basis, base rent can increase by 150 – 200%. For new leases, try to negotiate this amount down to 120%.  Be especially aware of this at renewal time to avoid getting penalized. Ask your landlord to waive this increase during protracted renewal negotiations so that you will not be penalized. Check this clause right now!

Focus on Important Issues: We want to stress that certain issues – such as the rental rate – are deal makers or breakers while other conditions are not. We’re not recommending that you ignore the details, but don’t get bogged down with them. Entrepreneurs frequently spend inappropriate amounts of time arguing or negotiating where it counts the least. Focus on the most important issues and revisit them as the leasing process advances.

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.

 

Could you use some help with your BUSINESS PLAN?

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” listed on our Website Registration page: CLICK HERE