Business Education

The Landlord is Seriously Raising My Business Space Rent – What are My Options?

Commercial tenants can expect their rent to go up every year. In fact, it’s a bit unusual for the rate not to increase at the end of a lease. But sometimes, unscrupulous landlords will take advantage of their tenants’ naivete and exercise a somewhat obscure clause that allows them to up the rental rate substantially. So much, that it can increase by a relatively high percentage, thus making it virtually unaffordable. Fortunately, there are some options commercial tenants have in these situations.

Business Owners, Know Your Lease

Although it may seem completely obvious or self-evident, don’t just skim over any commercial lease. If necessary, pay an attorney to look it over and explain it to you on a very elementary basis. Or, go over it carefully yourself and if you don’t understand something, be sure to research it on your own – do not just take the landlord’s word for what it truly means.

There’s no standard agreement for commercial leases. In fact, negotiating the terms of commercial leases is usually expected. Depending on the state of the commercial real estate market, a business may be able to obtain significant concessions from a landlord. A property owner with a largely vacant business park, for example, will most likely make allowances. On the other hand, the business renting the space will have less control over the terms of a lease in a hot rental market or when renting a premium space. —FindLaw Small Business

We’re not going to get into commercial lease types, because there are many kinds. But, it is quite common for leases to contain various expenses besides just renting pure square feet, including common area maintenance and repairs, and other expenses. However, it certainly isn’t unheard of that tenants get stuck with even more expenses related to their business rentals. So, again, be sure to understand the lease before you sign on the dotted line in order to avoid any confusion or surprises in the future.

What To Do When Your Business Rent goes Up Unexpectedly

If the commercial space you’re leasing for your business goes up dramatically, you do have some options available, though they may not always be the best. Here are a few things you can do if the landlord raises the rental rate on your commercial space:

Do your research first. Start by getting a firm grasp on your state’s commercial rental laws. This won’t necessarily be a fun task, but a very necessary one. If you understand how these laws work, you may find something in your favor. At the very least, you’ll have more knowledge about how the landlord-tenant laws work in your state and will be wiser to make better decisions in the future.
Survey the local market. The next thing you should do is to start looking at other commercial spaces immediately. You just may find some deals out there that would allow you to either lower your current rental rate or be competitive. Because of the pandemic disruption, many commercial landlords are desperate for tenants, since so many businesses have adopted work-from-home and hybrid models.
Try to renegotiate your current lease. Another option is to try to renegotiate the lease on the property you are currently occupying. You can use your newfound knowledge of the law and of the local market opportunities to your advantage. This is especially helpful if you really want to avoid the hassles of moving your operation elsewhere, and the landlord is willing to be reasonable.

How else would you deal with a sudden commercial rent increase? Please take a few moments to share your thoughts and experiences so others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group.

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3 Ways Small Business Owners can Help Employees Out during Tough Economic Times

April 28, 2022 No Comments

Small business owners are often in a unique position to help their employees during tough economic times. They may be able to offer more work hours, give gas and grocery gift cards, and allow schedule flexibility for side gigs. In this blog post, we will discuss some of the ways small business owners can help their employees out during these difficult times. How Helping Your Employees Benefits Your Small Business When you help your small business’ employees, they are not only appreciative but often become more loyal. They’ll also be more productive and deliver a higher quality of work, as well. Plus, happy employees are far less likely to leave, meaning you won’t have to find replacements and spend extra time training new employees. During challenging economic times such as a recession, many companies struggle to stay afloat while the employees worry about losing their jobs. Management has the tough task of finding ways to keep employees loyal and productive while assuring them that they can survive the challenging period. —Houston Chronicle Small Business All this is to say that your small business’ employees are a true asset. They are an investment in your company and usually, bring a healthy return on investment. Smart, long-term business owners realize this and therefore do anything and everything they can to help their employees when economic times get tough. 3 Ways Small Business Owners can Help Employees Out during Tough Economic Times Difficult economic times put far more stress and pressure on hourly employees than salaried executives. If your business is in the position to give employees a little help, it will go a long way. Here are three ways small business owners can help their workers through trying economic times: Offer more work hours. Offering more work hours is one way small business owners can help their employees during tough economic times. This can help employees make ends meet and keep them from having to find another job. Give gas and grocery gift cards. Giving gas and grocery gift cards is another way small business owners can help their employees during tough economic times. This can help employees with their daily expenses and allow them to save money on groceries and commutes. Allow schedule flexibility for side gigs. Allowing schedule flexibility for side gigs is another way small business owners can help their employees during tough economic times. This can help employees earn extra income and provide them with better financial stability. These are just a few of the ways small business owners can help their employees during tough economic times. If you are a small business owner, consider how you can help your employees during these difficult times. Your employees will appreciate your support. Do you have any other suggestions for how small business owners can help their employees during tough economic times? Share your thoughts in the comments below. We would love to hear from you! Interested in learning more about business? Then just visit Waters Business Consulting Group.

There’s No Synergy and Little Camaraderie between My Tenured Staff and New Hires… What Do I Do?

October 28, 2021 No Comments

So, you had a wonderful staff and everything was going really well. Then, the whole world fell into chaos due to the pandemic. But, you managed to work your way through and even brought on additional personnel. It was a reasonable and logistical decision. Now, you’re caught in a quagmire because your tenured employees aren’t syncing with your new hires. What can you do before it becomes too big a problem? Simple, take immediate action, size up differences, be impartial, formulate an action plan, and then keep an eye out. Every Solution Breeds New Problems It sure seems that when you find a way to fix an issue, it only creates another problem. Although it’s a well-known cliche, it’s certainly something that practically every business has experienced. When you brought aboard fresh talent, you probably pictured them working side by side with your existing staff. Instead, you’ve got a kind of civil war unfolding in your place of business. …it is important to intervene early. In extreme examples, the conflict might be due to one employee who is creating a problem, but most often it is a matter of having two personalities that don’t mesh well together. The sooner a solution is reached, the sooner both employees will be happy to be able to move on—and the sooner their coworkers will be relieved to feel the easing of tensions in the office. —The Balance Careers Obviously, you can’t let this go on and need to address it as quickly as possible. If you don’t, it will only worsen over time and divisions will grow deeper among your combative team members. They might even go so far as to quit abruptly in a moment of anger and leave you to deal with the very untimely fallout. Instead of letting this situation grow out of control, you need to intervene and take rational, measured action. Otherwise, you might also become emotionally overcharged and that will only lead to a lot more trouble. How to Deal with Employees Who Don’t Work Well Together There is always a potential for personalities to clash. It’s the opposite problem of having employees who get along too well, to the point they isolate themselves from the rest of the staff and that too becomes an issue. Because people are inherently social, they really like to get along. But, there are individuals who feel an innate need to do their own thing and this also can present a number of problems. If you have a tenured staff that isn’t meshing with new hires, here are a few bits of advice about how to deal with these circumstances: Identify the problem(s). We’ll start with the most obvious step to take. And that is, to identify the root issues of what’s causing so much chaos. You might find there are very petty differences here that have managed to quickly balloon out of proportion. If so, that’s actually good news because it’s a much easier fix. However, if you discover it’s a very wide and deep rift, you’ll have your work cut out for you. Understand basic personalities. It’s not just enough to understand what’s going on at the most basic level, it’s imperative that you also know precisely what types of personalities are involved. If you don’t have a firm grip on these elements, there’s really nothing that you can do to end the feud. If necessary, take a little time to get to know your new people better so that you can approach this with confidence. Don’t show favoritism to anyone. If there’s one thing that will sabotage all of your healing attempts, it’s showing favoritism. Usually, this trait appears on behalf of the people you know best and is biased against the new people in the business. Even if it’s the other way around, favoritism is a poison pill. Be objective and think things through before you take any significant action. Present some real, workable solutions. Obviously, as the leader of the business, you’ll be the one who needs to come up with one or more solutions or a set of compromises. Regardless of what these are, don’t apply them unilaterally. Instead, speak to people individually in order to get a sense of what they think is most fair, then bring everyone together as a group to talk it out. Monitor the situation objectively thereafter. Lastly, don’t pull yourself away from the situation too quickly. Instead, watch what unfolds over the next few days to several weeks and be ready to make changes if necessary. You could discover that it’s just not workable and have to make changes to your staff or even put people in different roles. Hopefully, they will begin to work well together and develop strong professional relationships. What other suggestions do you have for dealing with team members who don’t necessarily get along? Please take a moment or two to express your thoughts and experiences; you might just help someone else out in a big way! Interested in learning more about business? Then just visit Waters Business Consulting Group.

The Trump Kim Jong Un Summit and Its Most Valuable Lesson

March 13, 2019 No Comments

The world paid close attention to the summit between President Trump and Kim Jong Un. Regardless of its ultimate outcome, there’s a lesson going on every entrepreneur should learn. Namely, how to avoid snakes in business. The Fable of the Scorpion and the Frog They come by different names: charlatans, cheats, hustlers, swindlers, and more. For those who’ve not heard it, the fable of the scorpion and the frog weaves a short, cautionary tale. A scorpion needs to cross a river and asks a frog for a lift. The frog objects, saying the scorpion will sting and kill him. Regardless of their specific methods, con artists typically depend on their abilities to charm, intimidate, and rapidly spin convincing lies. More often than not, con artists are successful because well-meaning staff members accidentally provide crucial information in an attempt to assist them. Ultimately, the best way to protect your business from con artists is to make your team aware that they exist. CEOs and their team members should be constantly vigilant about what they share and with whom. —Forbes.com But, the scorpion points out, if he were to sting the frog, both would drown in the river. The frog reluctantly agrees and midway, the scorpion stings him. The frog asks why and the scorpion replies, “It’s my nature, I’m a scorpion.” How to Avoid Con Artists to Protect Your Business Now, con men cleverly disguise their true natures. They conceal their actual motives and that’s what makes them so difficult to spot. But, there are usually at least one or two (even more) warning signs. Here are a few ways to avoid con artists to protect your business: Listen to your gut. Con men know how to read people — it’s a necessary trait. So, they are careful to convince. Which means, it’s not easy to spot the scheme straight away. But, your gut feeling might be all you need to avoid becoming a victim. Put things into perspective. This is another way of saying, “If it sounds too good to be true, it probably is.” In other words, if you hear something that seems to be too good, put it into perspective. More particularly, place it up against reality. If it’s like trying to hammer a square peg into a round hole, you have your answer. Don’t hesitate to ask around. Shysters need to move on and move quickly before word spreads. While it might not be comfortable, ask around. Do a little digging if you get a funny feeling to see if others had a bad experience. It’s worth your time and effort in the long run. Trust but verify. Along the same lines is to verify. Check out what they’re selling to learn if it’s genuine or just a hustle. With a small amount of sleuthing, you can save yourself a lot of grief. How do you spot charlatans? What additional advice would you give others about avoiding con artists? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.