Basics to Budgeting for Retail Space

StrategyDriven Managing Your Finances Article | Basics to Budgeting for Retail Space

Regarding budgeting for retail space, several key factors must be considered. First and foremost, you’ll need to determine how much space you need and what location you want to be in. This will largely determine your rental costs, which can vary greatly depending on factors such as the size and location of the space.

Once you know your rental costs, you’ll need to consider the costs associated with fitting the space. This can include everything from painting and flooring to lighting, shelving, and any equipment or fixtures you may need. You should also factor in the cost of any necessary renovations or repairs to the space.

In addition to these costs, you’ll need to consider ongoing expenses such as utilities, insurance, and property taxes. You’ll also need to set aside money for marketing and advertising, as well as for inventory and other operating expenses.

Create a detailed budget and stick to it as closely as possible. This will help you avoid overspending, have enough money to cover your expenses, and keep your business running smoothly. You should also regularly review your budget and adjust it to account for changes in your business or the market.

How Do You Find Average Monthly Commercial Rents Near You?

To find the average monthly commercial rent for a specific location, you can research online or contact a local real estate agent or commercial property management company. In addition, several websites offer information on commercial rental rates, including

A site like this may provide average rental rates for specific areas or types of properties. Additionally, you can look at rental listings in your area to get an idea of what businesses are currently paying for commercial space. Remember that rental rates can vary depending on several factors, including the size and location of the space, the type of business, and the property’s condition.

Examine Lease Varieties & Terms

Several different types of leases are commonly used for commercial properties. These include gross leases, net leases, and modified gross leases.

A gross lease is a type in which the tenant pays a single, inclusive rental amount that covers all of the property’s operating expenses, including utilities and property taxes. The landlord is responsible for covering additional costs, such as repairs and maintenance. This type of lease is often used for properties in good condition and requires little care.

A net lease is a type in which the tenant pays a base rental amount and a portion of the property’s operating expenses, such as utilities and property taxes. This means the tenant is responsible for covering some of the property’s costs. 

There are several net leases, including single, double, and triple net leases. In a single net lease, the tenant is responsible for paying property taxes and the base rental amount. The tenant is also responsible for paying property insurance and taxes in a double-net lease.

A modified gross lease is a type of lease that combines elements of both gross and net leases. In this type of lease, the tenant pays a base rental amount and a portion of the property’s operating expenses. The specific terms of a modified gross lease will vary depending on the particular arrangements agreed upon by the landlord and tenant.

In addition to the type of lease, several key terms are commonly included in commercial leases. These include the length of the lease (also known as the term), the amount of the rent and any increases over time, and the tenant’s obligations and rights. Other standard lease terms include the landlord’s obligations and rights, any restrictions on the use of the property, and provisions for renewing or terminating the lease.

Don’t Forget to Account for FF&E + Utilities.

When budgeting for a commercial property, it’s important to remember to account for the costs of furniture, fixtures, equipment (FF&E), and utilities. FF&E refers to the movable items used in a business, such as desks, chairs, and computers. These costs can add up quickly, so include them in your budget and factor them into your rental rates or operating expenses.

Utilities are another factor to consider. They can include electricity, gas, water, and other services necessary for your operation. The cost of utilities varies depending on the size of your space and the type of business. Research utility costs in your area and factors them into your budget to predict your expenses.

Plan for the Unexpected

When creating a budget for your commercial property, plan for the unexpected. Unexpected expenses can arise at any time, have a plan to cover them. Some unexpected everyday expenses include repairs or maintenance to the property, unforeseen increases in utility costs, or changes in market conditions that affect your rental rates or operating expenses.

One way to plan for the unexpected is to include a contingency fund in your budget. This is a set amount of money that is set aside expressly for unforeseen expenses. The amount of your contingency fund will depend on factors such as the size of your business and the type of property you are leasing. You should regularly review your contingency fund and make adjustments as needed to ensure that it is adequate to cover any unexpected expenses that may arise.

In addition to a contingency fund, have a plan to deal with unexpected expenses. This can include setting aside a portion of your monthly revenue to cover unplanned expenses or having a line of credit that you can tap into if needed. By planning for the unexpected and be prepared to handle unexpected costs, you can protect your business and keep it running smoothly.

Physical Additions to Your Space

Suppose you plan to make physical additions to your commercial space, such as building or renovating part of the property. In that case, it’s essential to factor these costs into your budget. These projects can be expensive, so planning and budgeting them in advance is necessary.

When budgeting for physical additions to your space, you’ll need to consider the costs of materials, labor, permits, and other expenses associated with the project. In addition, you should also factor in any costs associated with disruptions to your business, such as lost revenue or additional fees for temporary space or storage.

It’s essential to carefully research and compare the costs of different options and get detailed estimates from contractors or other professionals who can help you with the project. You should also consider any potential long-term benefits of the additions, such as increased revenue or improved efficiency, and weigh these against the upfront costs. Finally, by carefully planning and budgeting for physical additions to your space, you can ensure that your project is successful and fits your budget.

Early Lease Termination & Renewal After Expiration

If you need to terminate your lease early or want to renew it after it has expired, there are several factors to consider.

First, understand the terms of your lease agreement. This will outline the specific conditions under which you can terminate your lease early or renew it after it has expired. In most cases, you will be required to give the landlord advanced notice of your intention to terminate the lease or renew it, and you may be required to pay the penalty or other fees.

If you want to terminate your lease early, you’ll need to negotiate with your landlord to agree on the termination terms. This may include compensating the landlord for any lost rent or other expenses they incur due to the early termination.

If you want to renew your lease after it has expired, you’ll need to negotiate a new lease agreement with your landlord. This may involve negotiating new terms, such as the lease’s length, the rent amount, and other conditions or provisions.

You’re Still on the Hook if Your Business Fails

If your business fails, you are still responsible for fulfilling the terms of your commercial lease agreement. This means that you must continue making your rental payments and comply with any other lease provisions, such as maintaining the property and not causing any damage to the space.

If your business fails, you may be able to negotiate with your landlord to terminate your lease early or to make other changes to the agreement. However, this will depend on the terms of your lease and the circumstances of your business failure. In some cases, you may be required to pay the penalty or other fees for terminating your lease early or for not fulfilling the terms of the agreement.

The 4 Most Important Financial Tips for Small Businesses

StrategyDriven Managing Your Finances Article |Financial tips for small businesses|The 4 Most Important Financial Tips for Small BusinessesRunning a small business is not easy. There are so many things to think about, and it can be tough to stay organized when you’re juggling everything on your own. One of the most important aspects of being a small business owner is managing your finances. If you don’t understand financial concepts well, it will be difficult to make your business successful. This blog post will discuss the four most important financial tips for small businesses!

1) Make sure you have a budget:

This may seem obvious, but it’s essential to understand your finances. You need to know how much money you have coming in and how much you’re spending each month. Creating a budget will help you keep track of your finances and make sure you’re not overspending. If you don’t have a lot of experience with budgeting, there are plenty of resources available to help you get started. Many software programs can help you track your expenses and income.

2) Get A Credit Card:

A credit card can be an excellent tool for small businesses. It can help you build your credit score and give you access to funds in case of an emergency. Just be sure to use your credit card wisely and only spend what you can afford to pay back.

If you’re not using a credit card already, now is the time to get one! Just make sure you shop around for the best rates and compare credit cards before you decide which one is right for you.

And remember, always pay your balance in full and on time to avoid interest charges and late fees.

3) Keep Your Records Organized:

It’s important to keep track of all your financial records, including receipts, invoices, and statements. This will help you stay organized and make it easier to track your expenses. You can use a software program to help you keep track of your records, or you can simply create a system that works for you.

Whatever method you choose, just be sure to stay on top of your records so you can always know where your money is going. Organizing your financial records will also make it easier to prepare for tax season!

Paying taxes is one of the most critical responsibilities of any small business owner, so it’s crucial that you stay organized throughout the year.

4) Have A Plan For Your Money:

It’s not enough to just have a budget – you also need to have a plan for your money. For example, what will you do with the money you’re bringing in? Are you going to reinvest it back into your business? Are you going to save it for a rainy day?

You need to have a clear understanding of your financial goals, and you need to create a plan that will help you achieve those goals. It will be challenging to make intelligent decisions about your money without a plan.

In conclusion, these are the four most important financial tips for small businesses! If you can master these concepts, you’ll be well on your way to financial success. Just remember to stay organized, make a budget, get a credit card, and have a plan for your money. With these tips in mind, you’ll be sure to find success in the world of small business finance!

Taking Control Of Your Business Finances

StrategyDriven Managing Your Finances Article |Business Finances|Taking Control Of Your Business FinancesIt is well-documented that the majority of new businesses fail. Cash flow is an obstacle for many aspiring entrepreneurs, and this is why taking control of business finances is so critical. If you’re preparing to launch a startup, or you’re in the early days of growing a small business, here is some advice to help you reduce risks and manage your money effectively.

Plan ahead

Your business plan should outline how you’re going to fund your company and how you’re going to monetize ideas to generate a steady income and make a profit. Whether you’re new to business, or you’ve been established for several years, it’s crucial to plan in advance. Create budgets, evaluate spending and look for ways to make savings without compromising on quality or customer service. Increasing efficiency is an excellent way to lower expenses while also increasing your profit margins. Use forecasts to influence growth plans and resist the temptation to run before you can walk. It’s wise to consider investing in expansion once you start generating profits and demand for your products or services is increasing. Until you reach this point, it’s beneficial to tread cautiously when it comes to your finances.

StrategyDriven Managing Your Finances Article |Business Finances|Taking Control Of Your Business FinancesMake budgeting simple

Budgeting is an incredibly useful tool for businesses, particularly those looking to reduce spending or save money. To make budgeting simple, make use of software and apps and keep track of expenses. Monthly web hosting enables you to pay a set fee every month, for example. You could also look into annual options. Make sure you know which payments are coming out of your accounts every month, which services you’re paying for once a year and what you’ve signed up for on an ad hoc or on-demand basis. If you have a firm grip on your expenses, this will help to prevent overspending and cash flow problems. It’s very easy to forget about payments when you have direct debits or you touch to pay via apps or instant web payments. Analyze your accounts and update or revise your list of regular payments every few months to make sure that your budget is accurate.

Invest in protection

Running a business carries risks, and none of us know what is around the corner. Even if your financial situation is rosy, you can never be too careful. Natural disasters, cybercrime, theft, incidents that affect your brand image and reputation and economic and political uncertainty can all jeopardize even the most successful, profitable businesses. Investing in protection is essential for all entrepreneurs. Make sure you have the relevant insurance and try and draw up plans and policies to minimize disruption in the event of unexpected curveballs. If you have insurance, you have an emergency fund available and you have a plan B to keep the business running smoothly, this will stand you in good stead if the waters get choppy.

Managing accounts and trying to generate profits year in, year out can be hugely challenging for business owners. One of the most important jobs to master as an entrepreneur is taking control of your finances. Plan ahead, keep a close eye on your accounts, budget and make sure you have protective measures in place.

The Big Picture of Business – Each Role Matters. The Value of Support Staff

StrategyDriven Big Picture of Business ArticleEvery person in the company matters to its success. Every job is important, as is filling them with the best people for each job. The art and skill of being great support staff is a cornerstone of business success.

From pop culture, think of the great role models that we grew up watching:

Della Street was the loyal secretary to Perry Mason. She knew what everyone was thinking and was the glue to the cases. She was the model for executive assistants and office managers everywhere.

The CEO is made stronger with a good C-suite team. Ed McMahon was TV’s premier second banana. He worked as assistant, announcer, commercial pitchman and sketch narrator to Johnny Carson throughout their 29-year run on NBC-TV’s “Tonight Show.” They had previously worked together on a game show, “Who Do You Trust” on ABC-TV. Bandleaders on the late-night are vital #3 characters on the show, including Doc Severinsen, Skitch Henderson, Paul Shaffer and The Roots band.

The movie star heroes had buddies to help them navigate the adventures. John Wayne and Roy Rogers had Gabby Hayes. Gene Autry had Pat Buttram.

TV show stars had great support casts. Lucille Ball and Desi Arnaz had Vivian Vance and William Frawley as Ethel & Fred Mertz. This historic teaming became the formula for most other TV sitcoms. Shows like “The Mary Tyler Moore Show,” “30 Rock,” “The Office” and others had expanded ensemble casts.

Some performers made careers as supporting players. Ann B. Davis was Schultzy on “The Bob Cummings Show” and Alice on “The Brady Bunch.”

Back characters on TV shows included restaurant and bar operators, where the stars went top relax. There were friendly, familiar places such as Cheers bar, Arnold’s Drive-In on “Happy Days,” the Krusty Krab on “SpongeBob Square Pants,” Dale’s Diner on “The Roy Rogers Show” and other homey places. In the business world are those staff people who make us feel more like family. Therefore, our loyalty to the company rises, and we are more productive.

Still other back characters bring cohesion to the enterprise. On “Gilligan’s Island,” those glue-adhesive characters were the Professor Roy Hinkley and Mary Ann Summers. Those vital employees in the business world might include the IT guy, the receptionist, the mailroom manager, the ethics adviser and the secretary to the Board of Directors.

Great executives know the value of crediting support figures for the business success. Lt. Columbo was always quoting his wife as basis for testing hypotheses, though the character was never shown. Newspaper publisher Perry White was always upstaged by his employees, notably Clark Kent/Superman. Al Roker does the weather on “The Today Show,” and he is also the motivating segment host as well. Nobody turns letters like Vanna White, making her essential to the legacy of “Wheel of Fortune.”

And then there were those mentors behind the scene who were responsible for lots of creativity. The Beatles had George Martin as their producer. Steven Spielberg had John Williams as music composer for his films.

A host of people make the CEO look good. Further, they transform the company to greater plateaus. Warmly recognize the contributions of executive assistants, trusted advisers, mentors, support staff, hier apparents, adjuncts, vendors and outside stakeholders.

Here are some characteristics of support personnel and rising stars who will make it as professionals and business leaders:

  • Act as though they will one day be management.
  • Think as a manager, not as a worker.
  • Learn and do the things it will take to assume management responsibility.
  • Be mentored by others.
  • Act as a mentor to still others.
  • Don’t expect status overnight.
  • Measure their output and expect to be measured as a profit center to the company.
  • Learn to pace and be in the chosen career for the long-run.
  • Don’t expect that someone else will be the rescuer or enable you to cut corners in the path toward artificial success.
  • Learn from failures, reframing them as opportunities.
  • Learn to expect, predict, understand and relish success.
  • Behave as a gracious winner.
  • Acquire visionary perception.
  • Study and utilize marketing and business development techniques.
  • Contribute to the bottom line, directly and indirectly.
  • Offer value-added service.
  • Never stop paying dues and see this continuum as “continuous quality improvement.”
  • Study and comprehend the subtleties of life.
  • Never stop learning, growing and doing. In short, never stop!

About the Author

Hank MoorePower Stars to Light the Business Flame, by Hank Moore, encompasses a full-scope business perspective, invaluable for the corporate and small business markets. It is a compendium book, containing quotes and extrapolations into business culture, arranged in 76 business categories.

Hank’s latest book functions as a ‘PDR of business,’ a view of Big Picture strategies, methodologies and recommendations. This is a creative way of re-treading old knowledge to enable executives to master change rather than feel as they’re victims of it.

Power Stars to Light the Business Flame is now out in all three e-book formats: iTunes, Kindle, and Nook.

The Big Picture of Business – Ethics… Good for Business

StrategyDriven Big Picture of Business ArticleIn order to succeed and thrive in modern society, all private and public sector entities must live by codes of ethics. In an era that encompasses mistrust of business, uncertainties about the economy and growing disillusionments within society’s structure, it is vital for every organization to determine, analyze, fine-tune and communicate their value systems.

Corporate Responsibility is more than just a statement that a committee whips together. It is more than a slogan or rehash of a Mission Statement. It is an ongoing dialog that companies have with themselves. It is important to teach business domestically and internationally that:

  1. We must understand how to use power and influence for positive change.
  2. How we meet corporate objectives is as important as the objectives themselves.
  3. Ethics and profits are not conflicting goals.
  4. Unethical dealings for short-term gain do not pay off in the long-run.
  5. Good judgment comes from experience, which, in turn comes from bad judgment.
  6. Business must be receptive–not combative–to differing opinions.
  7. Change is 90% beneficial. We must learn to benefit from change management, not to become victims of it.

Corporate Responsibility relates to every stage in the evolution of a business, leadership development, mentoring and creative ways of doing business. It is an understanding how and why any organization remains standing and growing…instead of continuing to look at micro-niche parts.

Integrity is personal and professional. It is about more than the contents of a financial report. It bespeaks to every aspect of the way in which we do business. Integrity requires consistency and the enlightened self-interest of doing a better job.

Financial statements by themselves cannot nor ever were intended to determine company value. The enlightened company must be structured, plan and benchmark according to all seven categories on my trademarked Business Tree™: core business, running the business, financial, people, business development, Body of Knowledge (interaction of each part to the other and to the whole) and The Big Picture (who the organization really is, where it is going and how it will successfully get there).

One need not fear business nor think ill of it because of the recent corporate scandals. One need not fear globalization and expansion of business because of economic recessions. It is during the downturns that strong, committed and ethical businesses renew their energies to move forward. The good apples polish their luster in such ways as to distance from the few bad apples.

Corporate Responsibility means operating a business in ways that meet or exceed the ethical, legal, commercial and public expectations that society has of business. This is a comprehensive set of strategies, methodologies, policies, practices and programs that are integrated throughout business operations, supported and rewarded by top management.

Corporate Sustainability aligns an organization’s products and services with stakeholder expectations, thereby adding economic, environmental and social value. This looks at how good companies become better.

Corporate Governance constitutes a balance between economic and social goals and between individual and community goals. The corporate governance framework is there to encourage the efficient use of resources and equally to require accountability for community stewardship of those resources.

As part of strategic planning, ethics helps the organization to adapt to rapid change, regulatory changes, mergers and global competition. It helps to manage relations with stakeholders. It enlightens partners and suppliers about a company’s own standards. It reassures other stakeholders as to the company’s intent.

About the Author

Hank MoorePower Stars to Light the Business Flame, by Hank Moore, encompasses a full-scope business perspective, invaluable for the corporate and small business markets. It is a compendium book, containing quotes and extrapolations into business culture, arranged in 76 business categories.

Hank’s latest book functions as a ‘PDR of business,’ a view of Big Picture strategies, methodologies and recommendations. This is a creative way of re-treading old knowledge to enable executives to master change rather than feel as they’re victims of it.

Power Stars to Light the Business Flame is now out in all three e-book formats: iTunes, Kindle, and Nook.