Now, About that Deposit for Your Lease ...

Why does it seem that there's always a need for more cash than dollars available to cover business related expenses?

Knowing that, WHY lock-up limited cash reserves in your landlord's bank account for the duration of your lease?

Dale Willerton and Jeff Grandfield

Your business needs to have cash available, not only to cover operating expenses, but to also take advantage of emerging opportunities where they are consistent with your vision. 

When working on your financial forecasts, it's common to use estimates in the absence of actual numbers. The more accurate you can be with these inputs, the greater your confidence in your overall projections, not to mention the confidence of those who will read your plan. It will provide a huge boost to the quality of the proforma statements in your business plan!

To further discuss aspects related to your lease deposits and other leasing considerations, here are our friends at The Lease Coach. 



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:

Leasing with no Deposit: Most tenants believe that deposits are mandatory. Not true! Approximately fifty percent of our lease deals we complete for tenants involve either a favourable-modified deposit or no deposit at all. Most lease agreements state that a security deposit is required. Are you a security risk? Maybe so, but if you’re a more seasoned business owner, you may not be a risk at all. Negotiate this condition for all you’re worth.

Renewing with No Deposit: If your lease agreement requires you to make a deposit for the initial lease term it is not acceptable for that deposit to continue indefinitely. Have your rental payments been on time? If so, resist further security deposits and make sure that you state this amendment in the renewal document. Otherwise, your deposit, which was to be applied to the last month’s rent, needs to be replaced for the renewal term.

When Should the Lease End? Most tenants try to start their businesses going into the busy season which makes sense. However, most lease terms should generally expire at the end of a peak season (or just before a company’s slower sales period). It’s usually better to negotiate a shopping centre tenant’s renewal in February rather than October. Therefore, rather than taking a five-year (or 60-month) term, opt for 56 or 64 months instead. Start and end your lease term when it’s best for you – not just the landlord.

For a copy of our free CD, Leasing Do’s & Don’ts for Commercial Tenants, please e-mail your request to DaleWillerton@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.

* Have you included your lease and business location costs into your Business PLAN? 

NOTE: This is an area where Pro-Vision Solutions Inc. can assist ... Visit our Website for more details on how we can help. CLICK HERE

What are your comments or additional helpful suggestions for entrepreneurs? 

Let us know your thoughts and thanks for sharing this post with those in your circle of contacts!

Pro-Active Steps to a Better Business

What's the NEXT STEP to grow and move your business forward?
 
Business can be challenging at the best of times - how are you finding things in today's economy?

Regardless of where you are in your business development timeline: Starting, Growing or Transitioning your business, there is always value in taking Pro-Active Steps, through exploring options and planning your NEXT STEPS!
 
You've likely heard the phrase, "No one plans the Fail ... they simply Fail to Plan."

What is it that keeps us from doing the type of planning that we know should be done? One of the most challenging things for the entrepreneur is to step back from their business and view it from an objective perspective. The fact is, we're so close to the venture that it's extremely difficult to see anything else!

Planning isn't always easy, but it doesn't have to be difficult either, particularly when you have someone to help guide you through the process. And that's where we can help you.

So let's get you started with one of the first steps! And that step is to come up with a clear understanding of where you want your business to go! In considering this, there are several important components we walk our clients through. One of them relates to your business Vision!

Vision: A vivid and inspiring description of what you'd like to achieve within a specified timeframe, providing you and your team with a clear understanding of your purpose and the value of your efforts.

Jonathan Swift put it this way, "Vision is the art of seeing what is invisible to others."

Helen Keller said that, "The only thing worse than being blind is having sight but no vision."

 
So for just a few moments, reflect on the following questions:

· What would you want your business to be 'known for' 10, 15 or 20 years from now?

· What is it about that reputation that motivates you to achieve that objective?

· What first steps will you need to take in order to make your vision a reality?

The thing is ... We all need to have a clear picture of what we want to achieve. Without having a handle on that, it will be impossible to develop a plan to take you along the best path towards achieving that objective. Instead, we'll find ourselves spending time, effort and significant resources doing things that are unproductive and unprofitable. A clear vision provides a clear focus. It allows you to best allocate the resources you have available to move toward your intended destination.

For those of you familiar with the work of Brian Tracy, you'll appreciate when he says, "All successful people men and women are big dreamers. They imagine what their future could be, ideal in every respect, and then they work every day toward their distant vision, that goal or purpose."

VISION is just the FIRST STEP - of course, there's much to explore beyond that. We'd encourage you to develop or re-visit your vision. Let your vision serve as a starting point on your path to a better future. Clarify your vision and then begin the process of identifying the path that will lead to that objective and put you in a better position to face the challenges ahead!

At Pro-Vision Solutions Inc. we be very pleased to help you through this process, providing an objective perspective that will allow you to focus your resources where they'll produce the greatest results for your business!

* We'll help you find a SOLUTION that’s right for your business planning and growth needs! Whether that's in providing a "Business Plan Review" for you, assisting you with our “Business Plan Coaching” services, or getting right in there with our “Business Plan Writing” service, we'll ‘walk with you’ on your journey as you move every closer to fulfilling your vision!

Let's begin that journey with a conversation around your VISION and what you'd like to accomplish. Working together, we'll walk with you through the entire process as you give shape to the future you've seen in your vision.

Contact us now and we'll arrange to have a 'Complimentary Conversation' as a way of getting to know each other a little better. We'll look forward to speaking with you soon! 

Here's a link to our Website "Contact" page with all of the details to help you quickly reach us.

CLICK HERE to CONTACT US

We're looking forward to hearing from you soon and helping you improve your business.

Sincerely,

Jim Ewing, Co-Founder
Pro-Vision Solutions Inc. 

When Should the Entrepreneur Call on the Team?

Someone once said, "It ain't over ... until it's over!"  

How many times have we seen professional sports teams lose the final game of the season by trying to protect a narrow lead,  thinking they had the victory 'in the bag'? 

Whether you're Starting, Growing, or Transitioning your business, don't let that happen to you!  Work closely with your team of professionals to help guide you through what may be the most important stages of your business journey!  

At Pro-Vision Solutions Inc. we're very pleased to be a part of that "team" of professionals, helping entrepreneurs as they put their plans for business together. In many cases, that's at the start-up stage, but it could also be anywhere along the business life-cycle and even into transitioning to new ownership. Regardless of the stage of the business, planning is important!  

Planning is frequently done when launching a business, but it also can play a key role in helping to guide an existing business to higher levels of success. Unfortunately, many people only think of doing a business plan when they're looking for capital at start-up or expansion. In truth, there's an important role for business planning at every stage of business! We'd be happy to explore your reasons with you and how developing a business plan can add value.

We've been enjoying this series of articles and trust that it's been helpful for those looking at buying or selling a business. We appreciate the help provided by our friends at Sunbelt Business Brokers who have also prepared the following article for our audience.

Please feel free to pass this post along to those you feel could benefit from this information. And thanks for keeping us in mind as you consider your requirements for business planning, growth and development, and business funding needs. Now, let's enjoy the following guest blog post.

20 Ways Business Owners Mess Up

When Selling Their Business

by Dale Alton

This is the 3^rd and final installment in the series, “What Not to Do When Selling Your Business”. We trust that it has been of value, not only to business sellers, but also to business buyers.

Knowing what to look for when buying a business can help lessen the concern about the process. One area that is often overlooked is the psychology of the buyer. Some buyers are very risk averse, but ‘in love’ with the idea of buying a business. It can take some time for them to get comfortable and move forward.  Sunbelt Business Brokers pre-qualifies prospective buyers and acts as an intermediary - helping to set the tone and moving the process forward at a good pace.  

What Not to Do When Selling Your Business

16. Push the buyer for action before they are ready 
Fundamentally, buyers require a business that provides a living wage, enough income to service debt, and produce a sufficient return on the capital they invest. But, as in other buying decisions, there is an emotional component involved. Buyers are individuals purchasing, not just numbers and profits, but a ‘lifestyle’, with all of these contributing factors.

Before the buyer is ready to move forward to due diligence, the seller has to give the buyer the full picture of their business. This requires ‘a meeting of the minds’ around the rewards the buyer stands to gain with business ownership—so that he or she ‘falls in love’ with the idea of owning the business and its ability to fulfill their personal objectives and lifestyle aspirations. 

17. Hold unrealistic expectations 
A seller’s expectations need to be in line with the market reality when it comes to the most probable selling price (MPSP) of their business and how long it takes to sell. The MPSP represents what the business would sell for in an open market, as is, in use, in place. The MPSP represents a reasonable price, factoring the true earnings, the state of the business, the risks and what the market is willing to pay. For many sellers, though, it means their business is not worth as much as they thought. 

18. Hold out for a better offer 
A business is only worth what a buyer will pay, and what a seller will accept. Sometimes an early offer is the best. I’ve seen a seller get a good offer for their business within two weeks of it being on the market, then turn around and put on pricing conditions that end up killing the sale. Nine months later, they are wondering why it hasn’t sold—until they realize it wasn’t underpriced to start with. A good broker knows the market and the thinking of both parties. It’s wise to respect their advice. 

19. Make commitments before the deal is closed 
Most North Americans are new to the process of selling a business. After negotiations are completed, they think the deal is done when it’s not, and in their excitement, they start making commitments for life after the transition. This is a big mistake as it puts the buyer in a leveraged situation that some will try to take advantage of. A seller who then refuses the buyer’s “new” offer at the last minute is left in a bad position due to commitments they have already made. Don’t make any commitments until the deal is closed. 

20. Overlook insurance to mitigate risk 
What would happen to your loan and investment in the business if the purchaser were to get ill or die? There are a number of insurance products that can provide the buyer with sufficient benefits to cover the payments on the loan you’re providing. Also you may want to insist on life insurance on the purchaser sufficient to pay off the loan if they die. As the assets of the business usually secure the loan, a prudent seller will insist upon a commercial insurance policy in place to protect these assets against, fire, flood, theft and other losses. Liability coverage is also essential. A prudent business owner should have these protections in place whether they are selling the business or not. 

If you have been following this series I commend your commitment to being prepared for the eventual transition of your business. It is possibly your greatest financial asset. Maximizing your after tax proceeds is only one of a number of important considerations. But it is one of the most significant ones to most Business Owners. 

Our next installment is a two part series looking at “What Your Business Is Worth”.

Sunbelt Business Brokers Edmonton

Sunbelt’s team of brokers, operating at local and regional levels, have experience selling small to medium sized businesses. 

Sunbelt is the world’s 

largest business brokerage firm with approximately 300 licensed offices located throughout the world, 

and 33 offices across 

Canada alone.

More than 1,400 Sunbelt brokers annually coordinate an estimated 4,000 Main Street and Middle Market business transactions.

A variety of strategies are required to sell businesses from different industries, of different sizes, and in different economic climates. Many Sunbelt brokers have specific industry experience and cooperate with their counterparts to identify the buyer and create the right framework for the sale.

Your Local Sunbelt Business brokers sell a diverse mix of main street businesses valued under $3 Million. Mergers and Acquisitions of larger and more complex business transactions of up to $30 Million are managed out of the Ottawa Head Office. We would like to help you plan and look forward to retirement, expansion or an exciting new business opportunity. 

Have you ever thought about selling your Business?

Sunbelt represents clients who may be interested in buying a business like yours. If you are thinking of selling a business now or in the next 3 years, discover what your next steps should be. Feel free to contact our Sunbelt Business Brokers Edmonton office if you have any questions or would like a free confidential consultation. Give me a call. Dale Alton – 780-878-8787

Sunbelt - The Place to Buy or Sell a Business.

* Thank you Michael and Dale - once again, it's great to have your input with respect to these very important considerations on Selling or Buying a business. The 20 point that were provided over the 3-part series has given us all lots to think about! We'll look forward to future articles that you'll be providing for our readers.

As a part of the TEAM of professionals that you'll be using in your business, we're pleased to assist those working on their business plans. Please let us know if that's something you're thinking about, and let's have a conversation! Together, we can help you Build your Business Dream, starting with your Business PLAN.

NOTE: For a closer look at the services provided by Pro-Vision Solutions Inc. and how we can assist ... visit our Website: www.pvs4u.ca

Feel free to add your comments or additional helpful suggestions for entrepreneurs.   Please let us know your thoughts and thank you in advance for sharing this with those in your circle of contacts!

Got the Next BIG BUSINESS Success?

As challenging as the economy may seem to be, there are still many looking for ways to launch their BIG BUSINESS IDEA into the NEXT BIG BUSINESS Success!  

My home province in western-Canada is Alberta.  Every region, regardless of the country you're located in, will likely have sectors of the economy that 'ebb and flow'. Alberta has experienced the significant impact of lower world oil prices, followed by job losses and higher unemployment, particularly in the oil patch. In spite of this, Alberta is still a great place to pursue business opportunities! And I'll mention one such success story in a moment.

A question that's often asked is: 'How can I know if my business idea will succeed?' The truth is none of us can know with perfect certainty that we'll succeed! And the reality is that NOT everyone is cut out to be an entrepreneur. That's why it's really important to understand what may be ahead, should you 'venture' down the entrepreneurial road!

Canadian government figures indicated that approximately 18 percent of the Alberta workforce was self-employed. When it comes to achieving 'success', recognizing that may be defined differently by each of us, the reality is that after 5 years of operation, approximately 60 percent of the businesses that started are no longer around. Beyond that, close to 80 percent will have disappeared within 10 years of having started. (Ouch!)

Pictured below is "Figure 6" that comes from an Industry Canada report called: "Key Small Business Statistics - August 2013".  It shows the business survival rates for all Canadian SMEs with 1 to 499 employees, as well as micro-enterprises (1 to 4 employees) and other small enterprises (5 to 99 employees). More detail is available directly from the report which can be found through the link at the end of this post. The business survival rates indicated here focus on the critical early years after formation, and the information is consistent with other sources we've seen.

So, let me come to the good news! The good news is that we definitely believe you can improve your chances of success with careful preparation before you set out to launch and grow your business!

Our approach has been one of collaborating with the key stakeholders who are helping entrepreneurs in the local community. We connect with, and build positive working relationships that bring together local Economic Develpment Professionals, Chambers of Commerce, Business-Industry Associations & Supportive Organizations. Working together, we help communities and organizations to develop NEW businesses, create NEW jobs, and stimulate NEW investment with what we believe is a SMARTER Business Start!

Over the past ten years, we've been delighted to offer the "Business START-UP Seminar Series" as a way of helping early-stage entrepreneurs prepare to start and more successfully face the challenges ahead of them. Using our collaborative approach with supportive, like-minded community stakeholders, we tap into the valuable resources available to assist the business community. Those who participate have gained many valuable insights, information, and perspectives that have helped them move forward - in the right direction!

Our NEXT Business START-UP Seminar Series is scheduled for November 2015 in the City of St. Albert, just outside of Edmonton, Alberta. 

Reflecting back over the years we've helped many who've dreamed of finding their own business success. One hopeful entrepreneur we met about 6 years ago said she came to our series because she was looking for some help with: “... the thought processes involved in moving from full time employment in a corporate job to being self employed. It was hugely beneficial in helping me break down what actions I needed to take, to make my dream a reality, and more importantly, help to break this down into organized segments (eg. Finance, marketing, legal etc...), so that it didn't seem so overwhelming.”

Jacqueline Jacek officially launched the JACEK Chocolate Couture brand on 1 December, 2009 from a home-based chocolate studio. In September 2012, JACEK Chocolate Couture expanded into a commercial chocolate studio for production, complete with a boutique where customers can purchase JACEK products.

Awards & Recognition
In December 2011, JACEK Chocolate Couture was chosen as one of the Top 10 Chocolatiers in North America, and she’s received numerous other recognitions as well.

We've been fortunate to have had Jacqueline speak at some of our events since her business launch.  We very much appreciate her having also shared some of those insights in a short video that can be seen on our YouTube Channel. Access to this and our other social media channels can be found through the links on our Website at: www.pvs4u.ca 

* Those interested in more information regarding the Business START-UP Seminar Series scheduled for November 2015 in St. Albert can CLICK HERE for details and registration. 

EARLY-BIRD DEADLINE for Registration is October 16, 2015.

As noted above, the Industry Canada report called: "Key Small Business Statistics - August 2013" was found at: https://www.ic.gc.ca/eic/site/061.nsf/eng/02802.html

  

Can an Introduction to Entrepreneurship Help?

As much as we laud the ideal of the 'self-made' entrepreneur, the reality is that many are involved in the incubation, development and growth of the entrepreneur. 

Many have written and spoken on the question of whether Entrepreneurs are "Born" or "Made".  In fact, we shared an extensive series of posts in this BLOG, together with reader comments that followed between in January 2012 and March 2012.  Expert commentary from those who've studied this question, as well as some of our own survey work was provided, supporting those who contend that entrepreneurs are 'made' - or 'developed' over time.  Clearly, there are skills that can be learned, applied and refined through the development process.  And when paired with the entrepreneur's innate drive and passion for business success, the likelihood of their achieving a positive outcome significantly improves!

We've enjoyed being a part of the entrepreneurial development process. For the past decade, the Business START-UP Seminar Series has helped many early-stage entrepreneurs looking to start and better prepare themselves for the challenges ahead. Through our collaborative approach with community stakeholders, participants gain valuable insights, information, and perspectives to help them move forward, and in the right direction!

Our NEXT Business START-UP Seminar Series is scheduled for November 2015 in the City of St. Albert, just outside of Edmonton, Alberta. This follows a very successful series that we facilitated for them in November 2014. Since then, we've reached out to those who attended, in order to follow-up and offer additional assistance, where that may be helpful.

One of those entrepreneurs was Meagan Hazlewood, owner of “BeFit Whole Body Fitness & Training”.

Meagan Hazlewood, Business Owner

After attending last year, Meagan said: 
“I found the series to be one of the most helpful for the start-up and growth of my new business! It addressed the real issues of opening a business in easy to understand language and created the connections you need with experts as your business progresses.”


We had a few questions for Meagan and she kindly provided the following answers that you may find helpful:

Q: What motivated you to start your own business?
I was motivated to start my business as I wanted to offer people the support they needed to find fitness and wellness through an individualized wellness program. Somewhere friendly, inviting - and somewhere that could offer custom packages based on the needs of my clients.

Q: How are your customers benefitting from what you’re doing?
Our customers benefit from what we are doing as they become part of a supportive wellness community. This network allows them access to both professionals and like minded members who can help them grow in their wellness journey. Clients don’t only get fit and have fun, they create life long friendships.

Q: What do you see as the biggest business challenge early-stage entrepreneurs face?
The biggest challenge for entrepreneurs is understanding their market and getting the word out to the people who are looking for their services. You need to do your research and have the funds to invest in professional assistance in this matter. Don’t overlook the power of getting this right!

Congratulations Meagan on the launch and growth of your new business!

Meagan Hazlewood is the owner of BeFit Whole Body Fitness & Training. Visit them for more information at: www.BeFit Edmonton.ca 

* Those interested in more information regarding the Business START-UP Seminar Series scheduled for November 2015 in St. Albert can CLICK HERE for details and registration.

EARLY-BIRD DEADLINE for Registration is October 16, 2015.