if you are thinking about taking over a little business
you might be thinking about setting up perhaps a coffee shop or a barber shop
or a hairdressers or a beauty salon or some relatively small retail type
business which is going to involve a premises taking on a shop unit or some
sort of a premises maybe it's an office maybe it's for
health and beauty salon or maybe it's a retail premises little coffee shop by
doing a shopping center on a Main Street or a small village over ever you need to
be very very careful what you are setting out to do is set up a small
business for yourself you're going to see this as a very harmless
innocuous little thing that if it goes well well and good and if it doesn't go
well well what the hell and therefore you're going to perhaps walk into a
situation where you're taking on onerous legal obligations in the form of a lease
for a premises without spending if you go up and carrying out the proper checks
and balances and due diligence that will be required for example if your business
doesn't go well if it goes badly and you've lost if you go of your house and
after six months or 12 months or 18 months of really hard graft or trying to
make go over you then want to walk away and you want to get out of the lease and
then you discover that you've actually signed up a lease for five years 10
years 15 years 20 for 20 years it's not actually easy to get out of the
lease it's like you calculate the lease you have signed up a legal contract to
legal document to take a particular premises and to pay rent to the landlord
now the landlord could care less whether you're making money or not clearly it's
in his or her best interest that you do make money because there's a bigger
chance that you're gonna pay the rent then however if you don't make money the
landlord is perfectly happy and satisfied that he has a valid lease in
place and he's entitled to be paid or she's entitled to be paid
there's no point you then turning around and saying about Jesus I never knew that
or I didn't know who I was say enough for or didn't really know that the lease
is gonna be this this long or whatever essentially at least gives you an
opportunity to train from particular premises however it also creates a
binding obligation on you to pay rent for a particular period of time as I say
is coming for 20 years there's no easy way out of that not from a legal
perspective so you need to carry out their due diligence at the outset before
you enter into the business second thing I've seen going wrong is a perfectly
successful little business tipping away after 12 months 18 months and the next
thing is the local planning authority the local County Council or Orban
District Council is rounded the planning authority essentially in the area is
around and is serving you with an orders to say that you do not have client
nation to carry on this business in this location in other words the planning is
not an order in order and essentially you're faced with okay I'm back again or
good to go and as I was saying you set up small
businesses it's straightforward and you might get all your ducks in a row and
carry out your due diligence in relation to getting clients for say in a land
beauty salon or for a coffee shop or for a shoe shop or whatever and you may well
say okay if it works out well it good and if it doesn't well I can always go
back to you know employment or I can start a different business or whatever
but you don't want to overlook the fact that the likelihood is as part of
setting up your business you're going to be taking on some sort of a premise
and what you need to do is you need to have be absolutely sure that everything
is in order in relation to the premises particularly three things number one the
lease itself that the lease is well negotiators and that perhaps you have a
break clause so that these things are not working out are not going great then
you can actually just break the lease you've got out of there no issue in
relation to five years ten years fifteen years later see number two good title
you need to be absolutely sure that the landlord is granting you the lease has
good title to the property because if he or she is in difficulty with a bank or
with perhaps a liquidator or receiver or something of that nature it's quite
conceivable that you could get a knock on the door after starting your business
after three months or so or four months or six months or whatever and discover
that the landlord who granted you the lease has gone tits up essentially and
there's receiver appointed to his properties and does perhaps a situation
where they might be trying to retrieve or repossess the property that's a title
issue but those title issues need to be sorted out at the outset before you sign
on the dotted line before you sign your lease the third thing you need to be
careful about will be planning you need to be sure that you have planning for
the particular activity that you're going to engage in it's a real bummer to
run a business start a business sweat blood and tears in order to develop your
business and then out of the blue some bureaucrat arrives from the council the
local authority the planning authority saying look you don't have time for
mation for fast food or for sit-down or for this particular activity that you're
engaged in I've seen it happen I've seen a perfectly good business closed up
because it was no prior information for the particular activity that the people
were engaged in and it was harmless enough activity but that was the bottom
line was not planning so those three things
Taiki the lease itself has to be negotiated properly and planning they
need to be checked out carefully before you sign on the dotted line you know in
to analyse running premises and remember it's easy to get hide away in the flush
of enthusiasm that you gonna have for your business and you may be looking
over here at the business getting clients getting cost so much how are you
gonna grow the business over here on the other hand is potential liabilities that
you can enter enter without fully knowing what you're doing so don't cut
corners do your due diligence beforehand don't just assume that because it's a
small business you can't get into too much trouble and
you've got 10 or 15 or 20 grand and if you lose it or what the hell because you
could end up signing a lease with a liability to pay rent for 20 years to
some one forgiving landlord who will pursue you to the ends of the earth for
the rent or you can find your business it's absolutely flying you're going
great for nine months then out of the blue some guy appears and says look at
you're not flying information for this you need to close up until you get so
that's you know don't get carried away do your due diligence get a guy like me
or get a guy like whoever or a girl to do the job would spend a few Bob and get
your ducks in a row get your research done and just make sure everything is in
order because it's difficult enough to build a business to succeed without
making a balls of something that you could have taken care of beforehand for
the sake of spend a few Bob hope you find this useful