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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Beware Entrepreneurs, This is Your Biggest Failing Point (but You Can Get Past It)

March 25, 2021 No Comments

What is an entrepreneur’s biggest enemy? There are many answers one could give to the question. Including things like self-doubt, lack of capital, not enough focus, and many more. But surprisingly, one of the biggest entrepreneurial foes is themselves. This comes in various forms, but one that’s particularly counterproductive is a rigid and unceasing belief that they can make anything work, including relationships. Usually, this is where toxic relationships come into the picture, but instead, we’re talking about relationships that just don’t work out for anyone involved. Final Endings can be Just as Healthy as New Beginnings Dr. Henry Cloud has spoken and written extensively about what he calls “necessary endings.” Basically, what this means, is putting an end to any relationship that is not a healthy one. And, it is applicable to the business world more so than one might imagine. That is to say, that sometimes putting a final end to a business relationship is also the birth of a healthy new beginning. Failed relationships in business have high costs, both financial and emotional –expensive golden parachutes, failed hires who waste costly training, partnerships and investments that lead to misery and conflict, investments that make you wish you had put your money anywhere else, buyouts that lead to the destruction of a business you’ve nurtured over decades. —Forbes Put another way, entrepreneurs are very stubborn people. They believe they can fix just about any scenario or situation. This even extends to their professional relationships, even when those relationships fail to work out time and again. Business owners mistakenly believe that just by making a few tweaks, they’ll be able to parlay productive relationships with individuals that have previously been failures. Although this isn’t so, it’s their rationalization about their own prowess that leaves them to try over and over. How to Effectively End Bad Business Relationships Fortunately, there are ways to identify and end bad business relationships. The trick is to rely on other people’s good judgment and embrace counterintuitive ideas. With a different perspective, it’s entirely possible to identify and end just about any bad business relationship. Here’s how: Stop the cycle. Instead of continuing the relationship on with the same person and experiencing the same bad results, make a resolution to realign your relationship. After all, it’s possible to remain friends, yet not be in business together. This doesn’t require an uncomfortable confrontation. Rather, gradually transition from a working relation into a just a casual one. Ask others for help. There are people in your life who you trust. Rely on their good judgment to help you see your blind spots when it comes to failed working relationships. This will probably be difficult to hear and more so to accept, but having someone else’s perspective may be enough to convince you that it just won’t work out. Try switching roles. If it seems like a particular relationship with someone in various business ventures fails time and again, perhaps it’s the wrong personality. Confide in someone else and bring them into that other person’s role in order to experience a new dynamic. Doing so might also help to reveal some of your own shortcomings. Step outside your comfort zone. It could very well be that the reason you and this other person can’t seem to get things to work out in a business environment is because you’re only comfortable in certain situations. While it’s usually beneficial to rely on others’ strengths where you have weaknesses, it’s also advantageous to overcome those weaknesses whenever possible. Look at the big picture. Having to end a relationship, even a bad one, can be very difficult. This is particularly true if you have an affinity for the other person, even when things just don’t work out. However, this type of unproductive relationship will likely only continue to disappoint rather than reward. Don’t see it as a failure on your part. Instead, accept it for what it is, good and bad, and find a realistic way to move on. What other suggestions do you have for ending bad business relationships? Please take a moment to share your thoughts and experiences. Your unique perspective might help one or several people out of toxic situations! Interested in learning more about business? Then just visit Waters Business Consulting Group.

5 New Product Rules Every Entrepreneur Should Know

May 24, 2017 No Comments

Consumers are truly creatures of habit. In fact, the average family purchases the same 150 products again and again, which accounts for a whopping 85 percent of all needs, according to a study conducted by Harvard Business School. Of course, that means when a new product appears on the market, its got to somehow work its way into those recurring purchases. It’s no secret that consumers are quite brand-loyal, so, this presents an even larger challenge. When you stop to consider your own purchasing habits, you begin to realize just how loyal you are to certain brands. Carving out market share is difficult enough, but, even more so when a product comes from an unknown or relatively new source. 5 New Product Rules every Entrepreneur should Know There are some 250,000 new product launches globally on average, per year. Obviously, very few make it past the first couple of years, as clearly evidenced by the nearby quote. What’s more, companies often fail to recoup development costs. In the grocery industry alone, the failure rate is even higher, ranging from 70 percent to 80 percent, according to research done at the University of Toronto. …the fact remains that the success rates of new product introductions and innovations have improved little over the last 20 years. Booz & Company reports 66 percent of new products fail within two years, and Doblin Group says a startling 96 percent of all innovations fail to return their cost of capital. —Fast Company For small-sized American food businesses, the success rate is even more sparse, coming-in at just 11 percent, which regulates an eye-popping 89 percent to failure. The top culprits of failure are poor product quality and design, but overestimating demand, bad pricing and timing, as well as incorrect positioning also make the list. The statistics go on and on when it comes to new product failure, so, it’s important to know what makes products get past their introduction to the public and sell. Here are five new product rules every entrepreneur should know and follow: It must have at least one solid advantage. There are several advantages a product can have and among the most persuasive are value for the money, prestige, effectiveness, convenience, and high-quality. If you look over this list again, you’ll find at the heart of all these is providing for want and need. For instance, the iPhone revolutionized the mobile phone industry — it fulfills a need, is a high-quality product, and provides many conveniences. The product must fit into consumers’ routines. If a product won’t easily fit into consumers’ routines, it won’t sell on the market. A product must be able to accommodate buyers’ routines because, as mentioned above, people are creatures of habit. Some products are able to break this rule, but these are few and far between. It’s got to work right out-of-the-box. American consumers love convenience, and, are very annoyed when a new product proves to be anything but convenient. Most people cringe at the phrase “some assembly required,” because of past experiences. Make a product that works right out-of-the-box and it has a much better chance of success. The benefits should be obvious to consumers. When consumers can readily identify the benefits of a product, they are more likely to buy it. Stop to consider the last time you were shopping for a specific type of item and compared brands. It’s highly probable you purchased the one you could easily spot its benefits. It can be given away for nothing (or part of a promotion). The Clorox company began marketing its first cleaning products to businesses and this approach failed. However, one owner’s wife saw that it had marvelous residential use potential. She gave small bottles of it away and soon after, sales skyrocketed. When consumers are given the opportunity to “test drive” products for free or at a low cost, they are more apt to purchasing it again and again. Though these elements will all increase the chance of success for a new product, it’s important to understand the market and to have an executable plan to be successful. We have several Clients that have new and innovative products that are succeeding because they have followed these five rules. Let us know your new product ideas and make certain yours meets these five new product rules. Want to find out about what a business coach can do for you? [shareaholic app=”follow_buttons” id=”26833294″]

My Best Job Candidate just Turned Down My Employment Offer – How can I Prevent that from Happening Again?

August 19, 2022 No Comments

So, you offered a superstar an employment opportunity and that person ultimately turned the offer down – much to your surprise. Now, you’re wondering why this happened. And, more importantly, how you can prevent the same from happening all over again. After all, repeating the whole process over and over will probably just produce the same disappointing results. With this in mind, it’s best to know the most plausible reasons top job candidates turn down employment offers. Top Reasons Job Candidates Turn Down Work Offers Let’s start with the most obvious: the compensation isn’t competitive. When was the last time you actually took the time to look at the latest compensation rates for your open positions? If you haven’t done this in quite some time, it’s definitely time to do so now. Another top reason is the benefits aren’t enticing enough – they simply aren’t adequate. Have you ever felt really good about a candidate? You thought it was a perfect match and couldn’t wait to have them on your team. You made your absolute best offer … only to have them turn it down. This may have led you to settle for your second, third, or even fourth choice candidate. You might find yourself wondering, what makes someone go through the trouble of applying, interviewing, etc., only to say no once the job is offered? What is it those job seekers want? —CareerPlug Again, if the benefits you’re offering aren’t in line with others in your industry, that’s a red flag. You need to give your benefits package a reexamination right away. Of course, another top reason is the interview process didn’t go well. You need to deconstruct how you vet candidates and make the necessary changes. Also, be sure to reassess who does the interviewing – maybe there’s a change needed there, too. Other Common Factors that Cause Job Candidates to Decline Offers Obviously, if the culprits aren’t compensation, benefits, or the interview process, the explanation must lie elsewhere. So, here are some more possibilities as to why you were turned down: The position really isn’t a good fit. It could be the candidate thought he or she was going for one position and it turned out to be something different. Or, that your company culture isn’t a good fit with his or her personality. Be sure you’re accurately describing the position and it isn’t in any way misleading. Too many negative online reviews. You might care deeply about online reviews. Or, might be a bit ambivalent about online reviews. Regardless of your disposition, it could very well have a detrimental impact on a potential hire. It’s obviously not enough to check your company’s reviews but to respond professionally. There’s a poor work-life balance. If you’re the type of employer who demands people give their all and are always available, you’re asking way too much. What’s more, anyone who has a home life won’t find it appealing to work for your company. Sure, there will be some candidates who like and thrive in these types of environments, but probably a lot fewer than those who place great importance on a sound work-life balance. What other reasons would you say would contribute to a job candidate turning an employment offer down? Please take a moment to share your thoughts and experiences so others can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.