The Secret to Business Success

I don’t think I’ve ever met a true entrepreneur who anticipated that they were NOT going to be a HUGE success.   

I mean – who goes into a business venture anticipating that they are going to fail?  No one does that!  Yet without attention to good planning and a solid business plan, the chances of failure are significantly increased.  And, in case you hadn’t noticed, the odds are stacked against you right from the start!

A recent online search for “small business success rates in Canada” generated a number of statistics including the following statement: “Business failure statistics show that about 96 percent of small businesses (1–99 employees) that enter the marketplace survive for one full year, 85 percent survive for three years and 70 percent survive for five years (Key Small Business Statistics).“

Knowing this, are there some things you could do to improve your chances of business survival? As we work with our clients, particularly at the start-up or growing stages of their business ventures, we’ve seen where the following “Survival Tips” from The Canada Business Network, can help entrepreneurs avoid some of the pitfalls that lead to business failure. Please give these some consideration, and let us know if you’d like to review how these can be enhanced or applied to your business planning!

• Develop a good marketing and business plan that takes into account customer needs, competition, pricing and promotional strategies.
• Have a good working knowledge of business law or hire a lawyer.
• Understand your business finances, such as cash flow and handling credit.
• Keep a good inventory of your products or services and your existing customers.
• Supervise, train and motivate your employees.
• Make sure you have the experience, expertise and talent to run your business.
• Plan every part of your business from start to finish.
• Know your market and define how much of it you will be able to capture.
• Make sure you are offering a product that is unique and competitive or at a lower cost than that of your competitors.
• Don't under-estimate your expenses and over-estimate your revenue.
• Make sure you have some cash reserves or a line of credit to help you get through slow periods.

Source: https://canadabusiness.ca/starting/before-starting-your-business/is-entrepreneurship-for-you/small-business-survival/

So … what’s the secret to business success?

In two simple words: “Avoid Failure!”

Business Success usually takes a good length of time before it’s achieved. Over night successes are very rare indeed. Some may say that success has more to do with good luck, and there may be some luck that’s been involved along the way. However, I’ve also found that the harder someone works at building their business, the luckier they become! Momentum begins to build and things start falling into place. So keep working at your business! Work hard, and also, work SMART! And when that day comes for your success, by all means, celebrate and enjoy the fruits of your labour! We’d also encourage you to remember those who helped you reach your goals, and find meaningful ways to “give back” to those “good causes” that are important to you and those around you.

                                                

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

Should we Talk about Business Success?

I've had the opportunity to meet a number of very successful business people over the years. And some of them have also been very wealthy! 😜

But seriously ... one thing that I find so very interesting is that after having achieved their personal and business success, the many diverse ways they choose to live their daily lives.

Some people are very overt and public with the display of the financial success they've achieved. And I'm sure you can visualize what that might look like. On the other hand, some choose to maintain a lower profile, minimizing public announcements of their achievements and indications related to their enviable financial status. 

To offer my own "two cents" on this, I think it really comes down to a personal choice. And on that note:

The choices you make are totally up to you.
The impression you leave will be totally up to others!

Sir Richard Branson is quoted as saying: “For a successful entrepreneur it can mean extreme wealth. But with extreme wealth come extreme responsibility. And the responsibility for me is to invest in creating new businesses, create jobs, employ people, and to put money aside to tackle issues where we can make a difference.”

Related to success in your business, here are some insightful and helpful suggestions from our friends, Dale Willerton and Jeff Grandfield with The Lease Coach.

Dale Willerton and 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: 

Keep Success Quiet: One of the main reasons that a tenant will be forced into a rental rate increase for a renewal term is the landlord’s belief that the tenant can afford to pay it. Therefore, the better your company is doing, the quieter you must be about your success. To this end, it is important to stifle your staff as they are often the ones who tip off the property manager. While a landlord won’t usually accept any blame for poor business performance, he will take credit (and rental increases) when times are good.

Reduce Your Rent Now!  With the exception of shopping centre tenants who report their sales, most landlords do not always know if businesses are prospering or failing. Just because you are doing okay is no reason not to try for mid-term rent reduction right now! If the landlord has already granted rent relief for other tenants in the property then your focus should not be can I get a reduction … but how much and will it be a rent abatement, short term rent relief, or simply a rent deferral?

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 needing a BUSINESS PLAN but finding the process to be challenging?

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

Business IDEAS and Business POTENTIAL

Where do good business IDEAS come from, and how can I determine if an idea has POTENTIAL? 

Those are great questions! Let’s take a closer look at them.

Earlier this year, I had opportunity to meet Vini Costanzo, Director with

ViniCostanzo Business Intelligence. Vini and I were both involved with the Mentoring of participants in "CrashCourse Jumpstart" - a business start-up weekend event held at the Northern Alberta Institute of Technology (NAIT) in Edmonton. He brought his expertise in marketing, social media and online business solutions, while I brought my experience with start-up, business planning and growth. In my discussions with him, Vini reflected on one of his previous observations (posted to his Instagram), which I'm pleased to share with you here:

Are you looking for an idea to start a business? Find a problem and look for ways to solve it. Look around you, the things you do on a daily basis and ask what can be done in a better way? Always remember, consumers are not looking for products or services, they are looking for solutions.

Thank you Vini. Your comments reminded me of something a former colleague of mine and entrepreneurship instructor still likes to say: "IDEAS are a DIME a dozen!"

A key to success as an entrepreneur is to find an idea that truly represents a business opportunity. In other words: are people prepared to spend their hard-earned money on whatever product or service your business will provide? Does it provide a solution to the problem or pain that they are experiencing? You may have a 'hunch' that there’s some level of interest, but have you taken steps to qualify and quantify the potential demand? Have you tested the market “appetite” for what you are thinking of offering? Many would-be business owners forget to validate the level of demand, and subsequently become frustrated when things don't go as anticipated. Sadly, for many, frustration isn’t the only negative outcome. Often there is significant damage to important relationships, personal reputations, and negative financial consequences as the result of the failure of a business launch.

At Pro-Vision Solutions Inc. we work with our clients to help them evaluate the potential of their ideas, and understand the necessary steps to put their business opportunity into the marketplace. Please let us know if you'd like to further explore your idea with our assistance and join those we've helped with "... a SMARTER Business Start, Growth and Mentorship!"

WHAT ARE YOUR COMMENTS RELATED TO THIS POST? 

We welcome your creative thoughts on WHERE IDEAS for Business can come from, and HOW to EVALUATE their POTENTIAL! 

                                                                                   

QUESTIONS:  

• Are you looking for some help in Exploring a BUSINESS Opportunity?
• Are you maybe expanding into a new area of business?
• Are you ready to move forward?

... Let's take a look at it together! 

 

More information & details are on our Website: CLICK HERE

Our "SPACE" in the Place!

"SPACE ... The final frontier!" 

Hey, do you remember that line? It's likely one of my favourites from the television series "Star Trek" and was voiced by Canadian actor, William Shatner who played the role of Captain James T. Kirk of the Starship USS Enterprise. 

As a kid growing up, there was this huge fascination with outer space, space travel and exploration of "strange new worlds". 
 
Ah ... those were the days weren't they?  Well ... who knows - maybe we'll get them back. This time in real life, if there's any truth to the "Space Force" that's been mentioned in some circles! But hey ... that's a completely different subject ... right?



So ... let's talk about the "SPACE" that your business needs in your "PLACE" ... as you "bravely go" and explore new worlds with your business venture! 

And on that note, please enjoy the following great insights from my friends Dale Willerton and Jeff Grandfield at The Lease Coach.



Negotiating Operating Costs as Rent

By Jeff Grandfield and Dale Willerton – The Lease Coach

Dale Willerton and Jeff Grandfield

As a commercial tenant, the monthly base rent you pay your landlord for leasing commercial space may not be the only rent you pay! Many commercial tenants will also pay a secondary amount for property Operating Costs. The good news is that both these rents are often negotiable. 

To clarify, Operating Costs (also referred to as Common Area Maintenance /CAM, Triple Net/NNN Charges, or Additional Rent) are the costs of maintaining and managing a property. Examples of  valid Operating Costs include property taxes, property insurance, maintenance, utilities, landscaping (which includes snow removal), and garbage collection. Valid Operating Costs will benefit all of the tenants in a commercial property – not just one or two. Commercial tenants need to understand and remember that Operating Costs are charged proportionately to all tenants. A tenant occupying seven percent of a commercial property will, typically, pay seven percent of the total Operating Costs.

Operating Costs are not, however, used equally. For instance, we are familiar with one tenant who created only one bag of garbage per week. He chose to load this bag into his own van, take it home, and place it outside with his own trash. Despite this, he was still obligated to pay his proportionate share of Operating Costs. In this case, it may be possible to exclude these charges for an individual tenant who can argue they are receiving no benefits from such Operating Costs.

Any costs that are not covered by the commercial tenant’s contribution to operating expenses become the responsibility of the landlord. Understandably, landlords want to ensure that tenants’ fees cover all the building costs. What is wrong, however, is when all the tenants within a commercial property are paying needlessly to subsidize capital improvements on the building. The capital improvements costs could mean the construction of a new building or the installation of new pylon signs on a property when none existed before.

Another common scenario when this occurs is when a new landlord purchases a building that has much deferred maintenance to be completed. The landlord’s motivation to complete this maintenance is to charge higher rents and fill vacancies, but this comes at the expense of higher Operating Costs for the current tenants. Commercial tenants should be looking at other similar buildings in the area and seeing what their Operating Costs are running at. If Operating Costs at one particular building are quite low and the property appears in need of updating, it is reasonable that these costs may rise significantly in the future.

A commercial property’s Operating Costs need to be completely spelled out in a tenant’s lease agreement. When this occurs, a tenant can examine, question, and negotiate each listed item. Beware that commercial landlords can be quite creative when it comes to listing Operating Costs … we have seen cases where landlords require all of their tenants to pay an annual fee to have a pool of money available for damage not covered by insurance. In most of these cases, the tenants were required to pay this fee for the entire duration of their tenancy. If damage occurred during a tenancy, a landlord will tap into this reserve fund; if a tenant has relocated, the money that he/she paid into the pool was not refundable.

When a building is fully occupied (or close to fully occupied), the landlord may be less motivated to try to charge their tenants more than their fair share. Prior to signing the Lease, a tenant must ensure that there is no language within the Lease permitting the landlord to charge back shares of Operating Costs for any vacancies to the tenants currently occupying the property. Even if your lease does not permit this, tenants must review their Operating Statements closely every year to ensure that they are not absorbing Operating Costs that should be attributed to any vacancies.

When it comes to deciphering Operating Costs, read carefully! These are a few of the potentially detrimental issues that can negatively affect commercial tenants: 

Administration/Management Fees: If tenants are paying the property manager’s salary through Operating Costs, but the landlord adds a further 15 percent management fee to CAM costs, this can be considered double-dipping (or double-billing for essentially the same service). If the landlord levies administration fees on property taxes and/or insurance, it may be possible to exclude these items from the fee as there is very little landlord’s administrative work involved with these.

Utilities: Electricity, natural gas, and water may be provided by the landlord or be separately metered for each tenant. In some cases, the landlord may have one meter on the property and a check meter on each tenant’s unit to measure consumption. If you’re paying your own utilities to the utility company you’ll have your own meter. Often, the landlord bills back utilities to tenants in Operating Costs. Make sure that you know in advance what your lease agreement calls for so you don’t pay twice.

Tenant Audit Rights: The landlord has a fiduciary responsibility for accountability to the tenants for the money collected from and spent on behalf of the tenants. Your lease should include tenant audit rights which allow you to examine the landlord’s books, if necessary.

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

IF it wasn't within the last 9 months ... let's take a look at it together!

Be ready for the next business opportunity that 'knocks' at your door.

Are you ready to move forward?

If you feel it would be helpful to receive some feedback and suggestions to improve your business plan, or improve how it's presented to others, ask us about our “Business Plan Review” service. Let's talk about how you can move forward!

For more information see:

"Option 5 – “PVS – Business Plan Review”

It's listed on our Website Registration page:

CLICK HERE

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