Saturday, 17 March 2018

Commercial Leasing - Tenant Considerations


Commercial property comprises a number of different types, including:
  • Professional Offices
  • Vacant land
  • Stand alone retail shops
  • Retail shops in large shopping centres
  • Retail shops in small strips
  • Warehouses
  • Factories
  • Industrial Sheds
  • Childcare Centres
  • Medical, dental and other health practices
  • etc 
Each of these property types has its own unique characteristics.
We have summarised in the table below some of the considerations you may want to take into account when leasing commercial property. Some issues will have more relevance or importance depending on the type of property and your intended use:



A Lease is a legally binding document. Before you, as Tenant, enter into a Lease it is important to:

  • Take into account the type of property and its characteristics
  • Undertake appropriate due diligence 
  • Consider relevant issues such as those in the table; and 
  • Obtain appropriate advice. 

Contact us for further information:


Disclaimer

The material provided in this document is for general information only and is not to be relied upon as advice. No responsibility is accepted for any loss, damage or injury, financial or otherwise, suffered by any person or organisation acting or relying on this information or anything omitted from it.


Business Competitive Advantage

chess, winner, winner, chess pieces, competition
Businesses exist in a competitive environment. Statistics tell us that a failure by business owners to properly identify their competition and take appropriate steps to differentiate their business is a contributing factor to business failure.

What is a Competitive Advantage ?

A competitive advantage exists when your business is able to provide the same or similar products and/or services as your competitors but at a lower cost and/or differentiated in some way such that superior value is created for your customer, and in turn you generate greater profits.

By its nature, obtaining a competitive advantage will form part of your strategic business planning process, which will entail assessing:
  • Your target market; and 
  • Exactly who your competitors are within that market. 
The target market essentially being the group of customers or clients that you have determined has the characteristic needs which your products or services can satisfy and upon which you will focus your marketing efforts.

How to Achieve a Competitive Advantage ?

Businesses can achieve a competitive advantage through a number of strategies (both price and non price). These will vary depending on the type of business and industry sector, but may include:
  • Promoting their particular know-how and skill 
  • Having unique intellectual property interests, eg. patents and trade marks 
  • Maintaining low cost structures 
  • Achieving superior brand awareness and reputation 
  • Meeting quality standards, such as through Australian Standards: www.standards.org.au
  • Effectively using information technology 
  • Having an accessible and visible business location 
  • Providing a unique product and/or service 
  • Competitive price 
  • Effective marketing/promotion strategies 
  • Correctly identifying a market segment – that is, a particular niche market that is not being fully or properly serviced by competitors 
  • Obtaining a better understanding of what customers/clients want and offering them a product or service that meets their needs 
  • Understanding your core strengths and abilities and building your business around this core 
Once you have identified your competitive advantage you can use this as an additional selling point in your marketing and advertising.

Contact us for further information:


Disclaimer

The material provided in this document is for general information only and is not to be relied upon as advice. No responsibility is accepted for any loss, damage or injury, financial or otherwise, suffered by any person or organisation acting or relying on this information or anything omitted from it.


Copyright © Greyson Legal 2018, All rights reserved.

Why Use a Business Plan

Prospective business owners contemplating going into Business who develop and follow a formal Business Plan generally have a higher degree of success compared to those who do not develop a Business Plan.

This can be attributed to the process of evaluation that a Business owner undertakes, especially at start up, to ascertain whether the Business is feasible and to keep the Business on track.

A properly prepared Business Plan guides and focuses the Business owner's attention on matters relevant to their Business, such as:

Structuring

What structure will be uses: (a) sole proprietor (b) partnership (c) company or (d) trust. Each have different advantages and disadvantages depending on the Business owner's particular circumstances.

Direction

Creating a road map for the development and growth of the Business.

Finance

Planning out the Business and placing you in a stronger position to obtain finance or interest from investors.

Assessing how much finance the Business owner will need at start-up and ongoing.

Vision & Mission

Developing a mission and vision for the Business.

Determining what is the future plan for the Business.

Culture
Determining the values and culture of the Business.

Benchmarking

Establishing benchmarks to compare Business performance and make appropriate alterations.

SWOT
Analysing the Business owner's strengths and weaknesses, opportunities and threats.

Target Market
Better identifying the target market for the Business.

Competitors
Identifying competitors.
Developing strategies to achieve a competitive advantage.

Goals/Objectives

Setting short, medium and long terms goals for the Business.

Timeline
Developing a timetable for achieving goals and objectives.

Products/Services
Fully describing the products and services the Business will offer.
Marketing
Creating marketing strategies.

Pricing

Determining a pricing strategy.

Costs, Income & Profits
Analysing start up and ongoing costs, projecting income and profits.

Suppliers

Identifying preferred suppliers and how supply will be effected.

Employees
Determining staff requirements.

Plant & Equipment
Assessing what plant & equipment will be required.

Inventory
Calculating the type and amount of inventory needed.

Location
Evaluating the location where the Business will trade.

Premises
Determining the type and size of premises required.

Information Technology
Confirming the computer systems and software needed.

Communications
Determining internet, email, fax, PO Box, telephone, mobile, etc.

Intellectual Property

Identifying Business IP and protection strategies.

Payment/Credit Policies
Determining mechanisms by which customers can pay, such as: cash, credit card, cheque, EFTPOS, etc.
Insurance
Evaluating what insurance is required.

Legals
Identifying legislative and regulatory obligations and how to comply.

Conclusion

A Business Plan is a living document and a management tool.  It should be reviewed and adapted to changes in the Business and the external business environment.

Reviewing the progress of the Business against the Business Plan on a regular basis is a good way to measure actual performance, and will provide relevant information upon which the Business owner can revise and update their plans. 

The content and structure of a Business Plan will vary depending on the nature of the business.

Contact us for further information:


Disclaimer

The material provided in this document is for general information only and is not to be relied upon as advice. No responsibility is accepted for any loss, damage or injury, financial or otherwise, suffered by any person or organisation acting or relying on this information or anything omitted from it.


Copyright © Greyson Legal 2018, All rights reserved.