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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How to Respond to Bad Online Reviews

May 5, 2017 No Comments

In an increasingly digital, on-demand world, that’s so closely and quickly connected, it’s easy to find out about a business before you do business with them. It also provides an environment where customers can cast your business in a negative light on a very public forum. Let’s face it, you won’t please everyone that does business with you and that can easily lead to a bad review. Before you know it, others jump on the bandwagon because someone else has taken the first step. What’s counterintuitive is not all bad online reviews are bad for business. For those who already know your company and appreciate what you offer, those reviews won’t matter. What’s more, consumers who read reviews usually do give deference, putting things into context. Future customers are likely to weigh the good with the bad and make an intelligent, unbiased decision. However, this isn’t to say that not responding is the best course of action. Ways to Respond to Bad Online Reviews When your company receives a bad review online, it’s only natural to do one of two things: label the person who wrote it as a blithering idiot or just ignore it. Of course, the former is a one-way ticket to the insanity of trying to win an argument that can’t be won or even resolved. The latter tells people that you just don’t care enough about your company’s reputation. While the second option will certainly do less damage, it isn’t necessarily the best way to go. Most customers won’t write you off based on one negative comment. Many, however, will gain respect for your business if you respond to the comment in a pleasant and helpful way. Of course, that’s not easy to do when you pour your life into a business and someone bashes it online. Your immediate impulse is to return fire. Don’t do it. Back slowly away from the keyboard and collect your thoughts. —Forbes What you ought to do is approach your business in a proactive manner, which you’re likely doing naturally. In other words, providing the best you can at a reasonable price, meeting or even surpassing customer expectations. However, it’s nearly inevitable that you won’t please everybody and out of those, there will be at least one that takes to the internet to voice his or her negative opinion. Of course, your business will be cast as incompetent, uncaring, or just bad all around. What you do next will determine how a bad review affects your business. So, try these tips to turn a negative into a positive: Don’t respond right away. It’s almost cliche to give this advice, but it bears repeating. The more in-the-moment you are, the more difficult it will be to respond objectively. Leave your emotions and personal bias aside. Yes, your company is your very life and you’ve pleased so many others, this seems quite unreasonable, but it might be legitimate. Try to learn from what’s being said. Don’t just take the comments at face-value, dig into what’s between the lines. You might just discover that there’s something awry you’ve never noticed. Be brief but clear. Your response should not be a novel and it shouldn’t go off into tangents. Make a brief, clear statement so others who read it can form a sense of the situation. Offer a reasonable solution. It might be the last thing you want to do, but offering a discount, or something else to make peace can work wonders. What you should never do is try to win an argument. You’ll look petty and it will appear to future customers that you don’t work and play well with others because you’re always in-the-right. Keep a level head and approach it with empathy, you’ll probably be surprised by the results. [shareaholic app=”follow_buttons” id=”26833294″]

Help! My Business Partner doesn’t Help Run Our Business!

May 6, 2021 No Comments

It’s said that the only ship that won’t sail is a partnership. Outside law and medical practices, few partnerships thrive, let alone survive. There’s a slew of reasons partnerships don’t work out. But, most entrepreneurs go into them because they’re optimists by nature. After all, it’s easy to imagine a worthwhile scenario, particularly when it’s someone who is trusted. However, many of these ventures fail and when it starts to go bad, it’s time to take action. The Most Common Challenges Partnerships Face The most common problems partnerships face are incompatibility, money issues, distrust, and then there’s a list of life events. These include death, drug abuse, disability, divorce, and other personal experiences. If that’s not enough, there’s always a divide between visions — one person wants to take the joint venture one way and the other, in another direction. In an ideal business partnership, everyone contributes their time and labor toward making the company a success. When a partner isn’t pulling her weight, it’s essential to address the problem before resentments develop and the business suffers. In many cases, simply having a frank discussion can resolve your issues. —Houston Chronicle Small Business What’s more, egos can also become a huge problem — especially when one person is the single source of inspiration. Or, disagreements about staff, expansion, and just about everything related to the operation and future of the business. How to Deal with a Lazy Business Partner Fortunately, there are ways to deal with a partner who becomes a bit lazy. If he or she is slacking off or just not producing whatsoever, there’s most definitely an underlying reason. Depending on the circumstances, you can try one or more of the following to deal with a lazy business partner: Have an honest discussion. Like it or not, you’re going to have to confront him or her, but not necessarily in a confrontational manner. Don’t go into the talk with a bad attitude, or even one of superiority. Any hint of a negative vibe will only serve to turn them off and not cooperate. Talk about your visions for the company and all the good things that will come out of working together. Then, listen carefully to what he or she has to say. Offer some temporary help. It could very well be that he or she is just going through some personal difficulties. Or, feeling a bit helpless and hopeless amidst the economic disruption. These are very common feelings and the good news is that they will usually pass. Offer him or her a little extra help and support, but put a time limit on it. Provide a little flexibility. If it is just a temporary situation and he or she will bounce back quickly, don’t let him or her get overwhelmed too soon. Instead, provide them a little bit of flexibility and that can really work wonders. Consider a total buyout. Obviously, not all circumstances will warrant staying in business together, there are most definitely situations that simply won’t work out, no matter how much effort you put in. So, explore your options to sever the business relationship, and a possible buyout scenario. What other suggestions do you have for dealing with a lazy business partner? Please take a few moments to share your thoughts and experiences so someone else can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

How a Small Business can Stand Out in a Super-Competitive Industry

October 7, 2021 No Comments

Although small businesses account for the largest majority of employers in the United States, this doesn’t mean that each one has necessarily carved out a totally unique niche of its own. In fact, quite a few of them are localized competitors, offering the same products and or services as their competitor peers. What’s more, they often offer very similar price points, so there’s little to distinguish one from another. This creates a problem in standing out to gain the biggest market share in a community or region. However, there are some things small businesses can do to separate themselves from the competition as the preferred, go to choice. Fewer Entry Barriers Equals More Competition Unfortunately for a good percentage of small businesses that are run by owner-operators, just about anyone can enter into the industry at any time. Prime examples include services like lawn care, pool maintenance, junk hauling, local movers, and similar types of work that do not require an extensive skill set or very expensive materials and equipment. Consequently, many people will test their entrepreneurial skill set and that takes away small bits of market share. The presence of many competitors means many businesses are vying for the attention of these hungry buyers. The market has a lot of noise. You’ll feel pressured to spend more in marketing, when in fact, your real challenge is just to do effective marketing and come up with unique sales strategies. —Inc.com Of course, this can easily lead to over saturation, where there are simply too many consumer choices. That set of circumstances really makes it difficult for those small business owners to distinguish themselves from the competition and stand out as a clear choice to their consumer base. Since there’s numerous alternatives, this endeavor presents a considerable set of challenges. Ways a Small Business can Stand Out in a Super-Competitive Industry Even though this might seem like an insurmountable situation, the good news is there are some very effective steps you can take. But, just because they appear simple doesn’t mean they are necessarily easy to enact and follow through with consistently. Here are a few effective strategies small businesses can use to stand out in a super competitive industry: Look professional. One of the key distinguishing characteristics of successful chain businesses is that they present the public with a professional appearance. Neat and clean uniforms are hallmarks of this very important public facing workforce. Just by dressing in a professional manner your company will easily differentiate itself from the competition. Be punctual. If there’s one thing that consumers appreciate, it’s being on time and staying on schedule. Showing up on time and looking the part will do wonders for your business. Most of your competition probably isn’t doing this, or doing it consistently. And you can benefit by making it part of your daily routine. Listen and execute. Although this might seem like just another bit of obvious advice, it’s surprisingly something that’s usually lacking in small businesses, particularly those that have very high rates of competition, do to the very low entry barrier. Because just about anyone can do the work, these businesses often treat their customers in an unappreciative way, just moving from one job to the next. After all, from their perspective, there’s more business out there and it’s unnecessary to make it personalized. But your business can really stand out by offering a friendly and caring experience. Invest in key areas. This means advertising smartly in order to develop and maintain a brand image. It also means to put money into the business in strategic ways, such as upgrading equipment to provide more efficiency and therefore more satisfied customers in less time. What other things can small businesses in very competitive industries do to gain more market share? Please take a few minutes 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.

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

Business Owners, Know Your Lease

What To Do When Your Business Rent goes Up Unexpectedly

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