A small business broker can really make a major difference when it comes to buying or selling a business. Much like a real estate agent, a small business broker has insider information that most business owners are not privy to, and he or she can help you negotiate the sale of a business to satisfy both sides of the equation.

Locating the Right Small Business Broker to Start the Purchase Process

There are several ways you can find a small business broker:

• Check with the International Business Brokers Association (IBBA). This organization not only lists members who meet certain criteria, but it also offers its own certification and education courses.
• Refuse to work with any professional who asks for more than 15 percent of the total sale.
• The sale of your small business should be kept private to minimize the loss of essential staff during the transition. Be sure your broker is discreet.
• Investigate the broker’s background. Just as you would investigate a broker if he or she were to help you negotiate a lease, knowing the experience of a broker for the sale or purchase of a business is even more important.
• Develop a marketing plan. Buying and selling a business is much like conducting business itself. Make sure your broker has a clear strategy in mind once you move beyond the consultation stage.

For more information on hiring a small business broker, or to learn how to start a business and negotiate a lease, give the consultants at a call.

Many small business owners are surprised to find that negotiating a commercial lease is a far different process than the one for residential property. Knowing these key differences is vital to an owner’s ability to start and maintain a small business.

Special Considerations for Negotiating a Commercial Lease

There are many things to take into consideration when drafting a negotiation proposal for a future business space:

• Because of research that has touted the benefits of having business pets or allowing employees to bring their pets to work, many businesses are now encouraging this trend. A business should always make this known while negotiating a commercial lease so accommodations can be made.
• Build-outs should always be an important part of negotiating a commercial lease. This is defined as any improvements, modifications, expansions and additional fixtures that are added to the space. The lease should clearly state which party will be responsible for the labor and cost of the build-outs, as well as who will be the owner of this property once the lease has expired.
• Rules pertaining to signage and traffic should be discussed before negotiations start. A business will want to negotiate whether exclusive parking areas are allowed, how the business may advertise and when, as well as which rules that apply to any store property placed outside the primary lease area.

Consider hiring a small business broker like to help you with a commercial lease negotiation.

A corporate lease is very much like a residential home mortgage, but it applies to just about any major asset that a business may need. Once a need is identified, a business may then approach a corporate leasing company about the desired equipment or real estate. The leasing company purchases the item or property, and then sets up a leasing agreement with the business, which will then have unlimited use of the property for a pre-determined amount of time. During this time, the business will pay the corporate lease in established increments.

Corporate Lease Advantages

The underlying principle to the corporate lease program is that profit is no longer tied up in the ownership of property, since the inherent value is actually in the property’s use. The use of the property doesn’t tie up capital or credit lines, so a small business may still use these for other business needs. In addition, leases are generally tax deductible.

Some corporate lease programs actually allow an item recently purchased by a business to be bought by the leasing agent, and then leased back to the small business. This frees up any capital that was spent in purchasing the item, while still allowing the use of the equipment.

Corporate leases do have their drawbacks, however, since most corporate property leases will never transition into ownership for a small business. To get the most out of a lease agreement, it may be prudent to hire a small business broker like , which has experience in lease negotiation.

Commercial lease negotiation is a much different experience than the typical residential leasing process. These important differences can have a major impact on your ability to start a business and keep it thriving.

How Commercial Lease Negotiation Is Different

• There are far fewer laws that offer protection to the consumer in a commercial lease. This means that there are often no deposit or rent increase caps, nor are there any provisions that help a tenant maintain privacy.
• Commercial landlords also tend not to follow any standardized forms like residential leases. Each element is designed to give the landlord a clear benefit, and these elements may not be developed with the tenant in mind. Because of this, each commercial lease should be scrutinized closely before beginning negotiations.
• Most commercial leases come with less opportunity to break the lease, and much steeper penalties once a lease is broken.
• The good news is that commercial landlords tend to be far more willing to negotiate terms than a residential landlord. This works out well, since nearly all businesses have some kind of special provisions needed to move into a space, and commercial landlords are generally eager to please in order to rent the space.
• Potential tenants should be sure to address any structural challenges a building may pose to regular business or growth. Likewise, a tenant should always ensure that another similar business is restricted from the same general location, and he or she should determine what kind of restrictions apply to signage and use of outdoor space.

The overhead costs of an office lease is the second only to employee wages as the most expensive element of owning a business. Because this takes such a major bite out of the wallet, negotiating the best terms for an office lease may save thousands of dollars over the course of the lease.

Special Elements of a Business Office Lease

Most business office leases do not include the entire building. Instead, these will involve leasing a parcel or single building located among other similar offices. They will require special attention to particular details, such as limited use policies. The landlord will generally have limitations on what the space can be used for, so having this negotiated to the broadest terms possible will work to the advantage of anyone trying to start a business. Young businesses may grow in unexpected directions, and even older businesses may evolve suddenly. Knowing your lease will still cover this evolution will help foster the growth process.

In addition, factor in repair costs when considering rent. HVAC equipment and plumbing can be a heavy burden when you just want to get on with business. Letting the landlord deal with these details can dramatically increase the perceived value of a space.

You can also ask for special accommodations, such as first refusal rights on expansion space or power to help keep similar businesses from opening up in the same property.

Negotiating a business office lease can be tough, so consider hiring a small business broker to help you handle these details.