Bullhead City AZ Commercial Real Estate – Impress The Landlord With Your Business Plan To Get A GREAT Deal On Your Lease!
In this competitive leasing market, one of the first questions prospective commercial real estate tenants ask is, “Is the landlord in a position to negotiate price and terms?”
Lately, that’s translated into: “How much free rent can I get?”
One of the questions, conversely, that the landlord may wish to ask a startup, new-to-area or unknown (as opposed to a national franchise, or a well-established local business, for example) is
“May we see a copy of your business plan?”
Reaction to this request can range from “What’s a business plan?” to “How is that any of your business?”
Not having a business plan for submission with a letter of interest is a red flag to many landlords and their brokers.
To seasoned landlords, a prospective tenant’s business plan is a key piece of collateral, and can be very instrumental for the business owner to obtain the best possible space for the lowest price, with the maximum landlord cooperation.
To the landlord, their building is THEIR business. It’s their income.
A solid business plan answers the question, “Will your tenancy be positive or negative cash flow?” for a landlord.
To execute a lease without a clear idea of the business’s plan would be like hiring an employee without a job application or resume–and what bank would loan you money without a loan app?
I often find that resistant prospects simply don’t know how to write a business plan.
For a startup, writing a business plan is vitally important, both to impress the landlord and to keep you on track for success.
To write a business plan that impresses the landlord:
- Start with your company’s vision or mission statement.
That’s a line or two describing exactly what you want your company to be known for in its industry, and how it plans to do that.
Example: Wonderful Widgets, Inc, the top supplier of widgets to widget users in the Tri-State Area, using a proprietary fabrication process that streamlines production, facilitates the fastest turn times and assures customer satisfaction through superior customer care.
- Identify your demographic. This will also help the landlord determine if you will be a good fit for the property you’re interested in. He may even have another in mind that would work better, once he knows who your customer base will be.
- Identify similar businesses in the area you would consider competitors. It’s possible that a tenant already in place may have an exclusivity clause that would preclude tenancy in that center. On the other hand, a symbiotic relationship may be possible.
- List the working capital you will need, and where you plan to get the money (or verify that you have it).
- List the type of buildout you will need. A site plan or floorplan would be ideal here. This will help the landlord ‘pencil’ tenant improvements and probably, shorten negotiations.
- List the staff you will be hiring, when and for what purpose.
- List the equipment and fixtures you will need for your business, and its costs.
- List the amount of reserves you will need on hand for anything unforeseen, and the source of those reserves. In my seasonal resort area, this is critical.
- Determine your estimated costs for the period you will lease the property (5-10 years is a good projection period) including advertising, payroll, utilities, taxes, insurance and tools of your trade, etc.
- Project your estimated net operating income for the business during each of the years of tenancy.
- Note plans for expansion and at what point of the plan’s timeline it is anticipated.
- Include, if you feel it necessary, a confidentiality statement for the landlord and his broker to sign.
- Finally, make a statement or attach a resume about your personal qualifications that will make the business a success.
- Include a cover sheet.
Recognize that a business plan is a work in progress. Recently, I had an owner of a startup tell me he had written his business plan over a dozen times in as many years, adapting to changing times and augmenting as new information and data comes in. This is a formula for success.
When you have an organized, clear business plan, you can make the right impression on a landlord. In turn, that landlord will be far more likely to assist you with buildout, incentives and yes . . . perhaps, even that free or reduced effective rent, to get you started comfortably in your new Bullhead City commercial space.
I represent landlords of prime commercial space for lease in Bullhead City, AZ and work with tenants seeking Bullhead City, Fort Mohave and Mohave Valley AZ office, retail, industrial and flex space, to name a few commercial property types.
How can we help you?
Deals That Make Sense.
Bullhead City 86442, Fort Mohave 86426, Mohave Valley 86440
SEARCH FOR ARIZONA REAL ESTATE On The Beautiful Colorado River ~~~
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866-228-2643
Candice A. Donofrio, Owner/Designated Broker
Certified Commercial Sales Specialist
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