"Rent increase" is a term not used much in the last couple of years in SW Florida or in many other places throughout the USA. If your lease is expiring, you may be surprised as to how flexible and cooperative your landlord may be to keep you as a tenant. Even if your lease is not due, you may be able to obtain concessions from your landlord. With property values down and vacancies on the increase due to failures of businesses, now is an excellent time to review your own plan for the next few years. If your business is struggling, the landlord may allow an abatement of part of your rent for several months or a year to keep you in business and as a tenant. Now might also be the opportunity to move to a larger or more desirable location for little or no increase in rent. The first place to check is with your current landlord. They may have a property available and it puts them on notice that you may move if you find a better deal.
One thing to keep in mind though is that if a deal is too good to be true it might just be. Rents are down but not free, so remember that if the landlord does not have the cash flow to meet expenses, maintenance issues may become a problem or you may even have to deal with foreclosure.
Tuesday, March 30, 2010
Wednesday, March 24, 2010
Non-disclosure Agreement
Non-Disclosure Agreement.
At some point most business buyers will be asked to sign a non-disclosure agreememt. This is simply an assurance to a seller that a buyer is obtaining information that is confidential and often personal to a seller. The buyer is stating that he will keep the information in a confidential manner simply using it in an effort to determine further interest in purchasing the business. Unlike home sellers, business sellers generally only want qualified and serious buyers knowing the details of the business or that it is even for sale. The agreement also commits the buyer to directing all communication through the broker or seller. Some sellers have employees that are not aware of the intention of the owner to sell. Other sellers have told the employees. It is always best on the part of the buyer to assume that they do not know of the sale. If the buyer needs assurance that the employees plan to stay that can be a term of due diligence and covered after tentative agreements have been reached on general terms by the buyer and seller.
At some point most business buyers will be asked to sign a non-disclosure agreememt. This is simply an assurance to a seller that a buyer is obtaining information that is confidential and often personal to a seller. The buyer is stating that he will keep the information in a confidential manner simply using it in an effort to determine further interest in purchasing the business. Unlike home sellers, business sellers generally only want qualified and serious buyers knowing the details of the business or that it is even for sale. The agreement also commits the buyer to directing all communication through the broker or seller. Some sellers have employees that are not aware of the intention of the owner to sell. Other sellers have told the employees. It is always best on the part of the buyer to assume that they do not know of the sale. If the buyer needs assurance that the employees plan to stay that can be a term of due diligence and covered after tentative agreements have been reached on general terms by the buyer and seller.
Monday, March 15, 2010
Business Plans
Why Do I Need a Business Plan?
"Proper planning prevents poor performance."
A business plan is like a road map, that assists the business owner to know where he is trying to go and how to get there. All businesses should have some form of business plan. It may be a simple concept for a small "mom & pop" business, or detailed and extensive for a larger business preparing a loan application. It may need to be updated on a regular basis to keep up with changes in the economy or opportunities that arise, but should have a basic concept of the mission of the business that does not vary. Businesses with a comprehensive business plan have a much higher degree of success.
This is why it is required for any loan application. The lender, dealing with all kinds of businesses, needs to know just what your business is about. If you have a confident knowledge of your business, the lenders comfort level of risking the depositors money with you is increased. Some landlords will also require a business plan before they will lease to you. They want to make sure you understand you are getting into.
Anyone thinking of starting or buying a business, must have some form of a business plan to really know if the concept is realistic. Once the business is going, it can keep you on track. Take it out every few months to see if you are doing what you should be.
You can easily write your own plan by following an outline. I will provide a sample outline in a future post. There are software packages that are pretty good available at the office stores. If you are applying for a large loan for expansion, the cost of a professionally prepared plan, may be justified.
Larry Steinborn, Broker
Business Depot
www.twitter.com/bizdepot
"Proper planning prevents poor performance."
A business plan is like a road map, that assists the business owner to know where he is trying to go and how to get there. All businesses should have some form of business plan. It may be a simple concept for a small "mom & pop" business, or detailed and extensive for a larger business preparing a loan application. It may need to be updated on a regular basis to keep up with changes in the economy or opportunities that arise, but should have a basic concept of the mission of the business that does not vary. Businesses with a comprehensive business plan have a much higher degree of success.
This is why it is required for any loan application. The lender, dealing with all kinds of businesses, needs to know just what your business is about. If you have a confident knowledge of your business, the lenders comfort level of risking the depositors money with you is increased. Some landlords will also require a business plan before they will lease to you. They want to make sure you understand you are getting into.
Anyone thinking of starting or buying a business, must have some form of a business plan to really know if the concept is realistic. Once the business is going, it can keep you on track. Take it out every few months to see if you are doing what you should be.
You can easily write your own plan by following an outline. I will provide a sample outline in a future post. There are software packages that are pretty good available at the office stores. If you are applying for a large loan for expansion, the cost of a professionally prepared plan, may be justified.
Larry Steinborn, Broker
Business Depot
www.twitter.com/bizdepot
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