Re-Negotiate Your Lease & Save Your Business

Cash Strapped Business Owners Negotiate Improved Lease Terms with Landlords

Riverside, CA – January 28, 2009 - According to Pablo Fonseca, landlords in the Inland Empire understand the current business environment their tenants face and they are ready to help share the economic burden knowing that a fraction of some rent is better then no rent at all.

Mr. Fonseca, a principle at Spectrum Business Advisors and LeaseDr.com, believes that landlords in today’s economic environment are more then willing to grant rent relief especially if a tenant takes prompt action and keeps the following actions in mind:

1. Just as you had to apply for your lease initially, you will need to “apply” for rent relief. This “application” will clearly explain your situation and a well thought-out plan for executing your turnaround.

2. Approach your landlord with a complete plan ASAP. The earlier you involve him/her, the more seriously he/she will take your commitment to succeed.

3. Involve a professional. A very clear signal to your landlord that you are serious about surviving (an not leaving) is involving another party to help orchestrate your lease modification.

The web site, LeaseDr.com helps guide entrepreneurs through the rent relief process. A well thought out plan, and the desire to weather this rough economy and emerge as a stronger business are key components to gaining favor with your landlord. Ultimately landlords want tenants that are in business for the long term and with the right approach they are willing to temporarily lower or even forgive rent.

Mr. Fonseca concluded by stating that, “During these tough times no one wants to lose a customer, especially one paying thousands of dollars a month. You just have to be prepared, sincere, and well organized before you present your plan to the landlord.”

Pablo Fonseca has been dealing with leases and landlords for over eight years. As a business broker with Spectrum Business Advisors, he negotiates and re-drafts leases with just about every closed sale. You can reach him at 951-235-4078 or through the web site at www.LeaseDr.com

Selling Your Business? Why you should use a Business Broker!

Selling Your Business? Why you should use a Business Broker!

Any business owner who has sold a business on his of her own will tell you it’s a long, tedious and stressful process. It consumes time and distracts you from the day to day operation of the business. When your focus should be on maintaining or increasing the value of your business, all of your time and energy is directed to the sale process.

That’s where an experienced business broker can pay huge dividends. There are many areas where the business broker expertise pays off:

• Confidentiality. If you as an owner attempting to sell your own business, that process alone reveals that the business is up for sale. Employees, customers, suppliers and bankers all get nervous and competitors look to make a kill. A business broker will protect the identity of the company and contact only owner approved buyers through a blind profile – a document describing the company without revealing its identity.
  

• Business Continuity. Selling a business is time-consuming for an owner who already is probably wearing many hats for the company. By taking on the additional load of selling the business, essential functions will get less attention and possibly damage to the business. The owner can maintain a focus on running the business when a broker is working on the sale.
  

• Reaching potential buyers. Business brokers have the tools and resources to reach the largest possible base of buyers. They then screen these potential buyers for revenue that would support the potential acquisition.
  

• Marketing. A business broker can help present your company in the best light to maximize the sale price. He or she has an understanding of the key values that buyers are looking for and can assist in identifying changes that can lead to a better selling price.

• Valuing your Business. Putting a value on a business is far more difficult and complex than valuing a house. Every business is different, with hundreds of variables that have an impact on the value. Business brokers have access to business transaction databases that can be used as guidelines or reference points. But the best way for a business owner to truly feel comfortable that he got the best deal is to have several financially viable parties bidding for his business, which is much more likely using the resources of a professional business broker.
  

• Balance of Experience. Most corporate buyers have acquired multiple businesses while sellers usually have only one sale. An experience business broker can level the playing field for a business owner making his one and only business sale.
  

• Closing a Deal. Since the business broker’s sole function is to sell the business, there’s a much better chance that a deal will be closed in less time. The faster the sale, the lower the risk of employee problems, customer defection and predatory competition.
  

Utilizing the services of an experienced, professional business broker allows the owner to focus on running the business reducing the risk of business erosion during the sale process. A sale facilitated by a business broker helps maximize sales proceeds by involving a large universe of buyers in a confidential, competitive bidding process.

Make 2009 a Year for Better Advertising & Marketing

Make 2009 a Year for Better Advertising & Marketing

The New Year is a time to reflect, learn, and change for the better. This is also true about your marketing efforts—if you are not in the minds of your clients and potential clients, how are you going to grow in 2009?

Tip #1: Figure out how to measure your advertising’s effectiveness and only spend money on advertising that you can measure. Unless you have a marketing budget like Coca-Cola, you should probably forgo “image” advertising and stick to advertising that asks the end user to do something that you can measure. Whether it’s responding to a tractable phone line or giving them a reason to sign-up at your website. (Oh yeah, I shouldn’t have to list “get a website”, it’s 2008! Your business should have a website, and several reasons for your clients to go there.)

Tip #2: Your clientele. If you don’t already have a database, or at least your Outlook filled with your best customers’ information—do it! Experts estimate it costs 5 times more to get a new client, than it does to work with your existing customers. Build a relationship for life not for a single transaction.

Tip #3: Focus on your strengths, then target your customers. You must differentiate yourself from your competition. Why is your business special or different, and which group of potential clients will benefit the most. Then focus you marketing efforts like a sniper rifle, not a shotgun.

Tip #4: Sell solutions not products or services. When you advertise always think in terms of how your business will make the customer’s life better or easier.

Tip# 5: Don’t be afraid to take risks—calculated risks. Standing out from the crowd requires innovative thinking, and innovation is risky—it may not work. But, if you are measuring you will know when to cut your losses.

Published in the Paradigm Shifter by

Pablo Fonseca

CRIME Does Pay!

C.R.I.M.E Does Pay!

The Entrepreneurs' greatest resource is TIME. To be successful, you must use your time (with regard to business activities) where it will get its biggest return. I have identified several areas to focus on, and used C.R.I.M.E as an acronym.

CASH: Cash is King! No money = No business. You must spend the bulk of your time on activities that drive sales, revenue, profits, cost savings, and marketing.
RELATIONSHIPS: Building loyal customers, partnerships with your employees, and relationships with your vendors are key to long term success and value building.
INNOVATION: Adaptations and change are necessary and constant. You must invest money and time in your products, services, messages, and YOURSELF.
MOTIVATION: You need to keep the fire burning in yourself and your staff. You need to spend some time recharging, challenging, planning, and executing. If you can't get yourself out of bed in the morning it's time to find something that will.
EVERYTHING ELSE: Your business has operational needs. Payroll, HR, running to the post office, getting to Staples. Delegate accordingly, and outsource what you can afford. Spend most of your time on the important stuff.
Adapt some of these strategies and CRIME does Pay!

Published in the Paradigm Shifter by

Pablo Fonseca

Is it time to sell your business now?

Is it time to sell your business now?
Despite the slumping economy, a good business will always be in demand. What do buyers look for for in a business? Take a look at the following traits we have compiled.

Increasing Revenue
Has your business been growing 5%+ for the last three years?
Complete Financial Documentation
Buyers are looking for documented financials going back at least 3 years.
Continuity of Ownership
Have you been the owner for the last 3-5 years?
Long Term/Favorable Lease
Does your current lease move forward 5-10 years? Does it have any options? Are your annual increases below 3%?
Pricing
The pricing of a business for sale is the single most important factor determining whether or not it sells. Regardless of how well positioned a business may be relative to the other factors we have mentioned, an overpriced business will stay on the market for a long period of time, while receiving minimal attention from buyers.
Terms of Sales
Other than pricing, the terms of the sale are the most critical component determining the close of a sale. For businesses that are incapable of producing complete and favorable documentation of financials sellers should expect to finance 50%-70% of the sale.
Condition of Premises
The condition of the premises is extremely important, especially if the business deals directly with the public. A neglected facility is a frequent reason why buyers walk away a transaction or make offers significantly lower than the asking price.
Existing Management and Personnel
Having good people in place is very important. Poor morale and inattentive workers are negative factors that jeopardize deals.

Is it possible to Modify your Lease?

Q: Once I have signed a retail lease, is it possible to change the terms of my lease?
A: Depending on the circumstances, once you have signed a retail lease, you are not "completely stuck" with its terms.
Our experts suggest putting together a wish list of key concessions that you would like to get from the owner if a renegotiating opportunity arises. The wish list is likely to include monetary and non-monetary concessions such as:
· Reducing minimum rent;
· Decreasing CAM costs, taxes, and insurance costs;
· Removing or adjusting percentage rent;
· Other Concessions
http:www.LeaseDr.com

Lower Your Rent & SAVE YOUR BUSINESS

This is a new Press Release

3 Keys to Lowering Your Rent & Saving Your Business

Riverside, CA – January 25, 2008 – Are your lease terms set in stone? Can you negotiate with your landlord to lower your rent and help save your business?

“Yes,” says Pablo Fonseca, principal at LeaseDr.com “During these tough times no one wants to lose a customer, especially one paying thousands of dollars a month. You just have to be prepared, sincere, and well organized before you present your plan to the landlord.”

Your landlord will be more willing to grant rent relief when you take prompt action and keep in mind the following:

1. Just as you had to apply for your lease initially, you will need to “apply” for rent relief. This “application” will clearly explain your situation and a well thought-out plan for executing your turnaround.

2. Approach your landlord with a complete plan ASAP. The earlier you involve him/her, the more seriously he/she will take your commitment to succeed.

3. Involve a professional. A very clear signal to your landlord that you are serious about surviving (an not leaving) is involving another party to help orchestrate your lease modification.

LeaseDr.com is a newly launched site that helps to guide entrepreneurs through the rent relief process. A well thought out plan, and the desire to weather this rough economy and emerge a stronger business, are key components to gaining favor with your landlord. Ultimately, landlords want tenants that are in business for the long term and with the right approach they are willing to temporarily lower or even forgive your rent.

Pablo Fonseca has been dealing with leases and landlords for over eight years. As a business broker with Spectrum Business Advisors, he negotiates and re-drafts leases with just about every closed sale. You can reach him at 951-235-4078 or through the web site at http://www.LeaseDr.com