Imagine this. You are competing in a marathon WITH a tonne of BRICKS on your back. Operating a business with a bad lease feels a BIT like this.
If business is in the retail space, then the LEASE on the PROPERTY could be your business death warrant before you even begun.
Restaurants, cafes, food court outlets, convenient stores, fashion boutiques and all retail - you are at risk.
The amount of rent paid MUST align with your business concept and demographics. If you get this wrong, then the business overhead becomes too heavy a burden for the business and you are dead in the water. The landlord could also potentially make you pay for all the rates, repairs, council fees and more!
The landlord is the chief antagonist in your effort to sell the business and they can VETO the sale when you want to exit. The landlord could destroy your business in a jiffy.
Buyers MUST enter a business with the exit in mind, and mitigate landlord issues early on.
‘How long should the lease be? What is the market rent for my suburb? When should I meet the landlord? What is the landlord thinking? Is my business a good fit with the rent being charged in the area and the customers demographics?’
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