YOU ARE ENOUGH.

BY NICOLE HEROUX WILLIAMS I PHOTOS BY NSP STUDIO

Who doesn’t love more money? When first speaking with a business owner, the initial conversation always includes determining a comfortable budget.

We discuss the differences between price and value. Price is just the dollar amount , but the value is so much more impactful. There are pros and cons to both with large economic impacts. For many businesses, especially if they are just launching or securing their first space, leasing is truly the best avenue. It’s necessary to factor in initial cash to start up, cost of renovation, future growth and expansion needs, and flexibility to relocate should the location not be ideal. Let’s dive a little deeper into each of these factors.

Let’s talk about the space itself. When touring spaces, there is never a turnkey situation. The space will need renovation for the new user to better suite their operations, esthetic and overall vision.

The big question is, who pays for this remodel? It’s simple if a business is buying the building because they are paying themselves! So, on top of a down payment and closing costs, now add in the renovations. When leasing, there are always 3 options of who pays: the landlord, the tenant, or a combination of the landlord and tenant. The latter option is the one that I see most commonly. While each situation is unique and negotiations vary, one aspect remains constanteach party wants to contribute as little as possible to renovations! This is a reason why having an expert negotiator on your side is vital! We will guide you through understanding the landlord’s responsibilities, government requirements to obtain permits, the payback term is over the 5 or 7 years of the lease. This tactic also helps new or small businesses open a location! and renovations involving licensed professionals, etc. In a situation where the landlord delivers the space to the tenant fully remodeled, the responsibility and out of pocket costs fall on the landlord. At times, the costs of the renovation will be added back to the monthly rent for the tenant to reimburse the landlord for the costs. In this scenario, the tenant is still benefiting by using the landlord’s money upfront and

A business has now been open for a few years and business is booming! They have hired additional employees and have now outgrown their space. For a tenant that leases, they will likely be able to relocate within their landlord’s portfolio. Whether the expansion option is the adjacent space, a different floor in the building or a nearby building, landlords with large portfolios provide a lot of growth options. By this point, the business has built a good relationship with the landlord and the landlord will be flexible while helping the business expand. If a business buys a building, they may have the option to add an addition.

All in all, landlords help small businesses get started! In my opinion, the biggest reason to lease versus buy for a small business is that landlords are invested in your success. If you don’t succeed, then they don’t succeed. Landlords will help introduce you and market you. Many landlords have a marketing team to help promote the new business to their other tenants and on their social media. When you buy, all marketing and relationships are solely on you. As a buyer, there is no one else that is invested financially into your success. Whereas, with a