Jim Culverwell

 

Whilst I’m often called in to help clients when things go south with a lease negotiation, getting commercial property advice earlier in the process – when you’re still thinking about taking on a commercial property and before you get stuck or worse, committed – is actually a much wiser investment as a business owner. 

Engaging a commercial property consultant like me before you even start your property search will save you time and money, help you avoid the costly mistakes I see all the time, and ensure that you find the right property your business needs. 

Whether you’ve a few office relocations under your belt or you’re considering taking on your first commercial lease, in this blog I walk you through the full end-to-end process to help you understand the benefits of seeking advice at the right time to spot and skip over those trips and traps that catch the unwary or unadvised business owner.

 

1. Business Needs Analysis – the starting point

 

Some business owners start in the most unusual places.  Asking the question ‘What does the business need?’ is the vital, first step towards identifying the ‘right’ property on the ‘right’ terms for your business.  It is all too easy to get sidetracked on a particular aspect of your next premises and the overview gets a bit lost. The answer to that question, by the way, lies in your business plan.

Together we will brainstorm your business plan and compile a wish list of the characteristics and features that your commercial premises needs – a template, if you like, against which we can compare what is available in the marketplace. 

I will then work with you to explain and identify the key lease terms that are critical to your business, enabling you to clearly identify what aspects of a potential lease and property are in that category.  Check out this video for a quick summary of how to do it.

 

Why treat your premises like a member of your staff?

 

2. Commercial Property Search

 

With access to specialist resources and over 35 years of experience of the commercial property market, I can then seek out that ‘right’ property for you as defined between us, in Stage 1. After sifting through the stock of potentially suitable business premises to rent, I will show you what is on offer from which we can create a shortlist to inspect. I will also show you the pros and cons of each option and help you identify the best match for the business.

 

3. Lease Negotiation / Renegotiation 

 

One of the most challenging and often emotional areas I support business owners with is commercial lease negotiation. This step is the culmination of the entire process. Before you enter any business negotiation you should know what you actually need and want, to support your end-objectives. This is why the work in stage one above, is so important.

In a lease negotiation, I always invite my clients to consider what their priorities are, and also what the landlord has as their priority. I use my experience to structure a proposal built around your key terms. 

We want to avoid the landlord dictating the terms.  Full, comprehensive knowledge is what is required to negotiate on a level playing field. Understanding where we initially position ourselves on each term to conclude the negotiation where we are happy, is a central component of this stage.

 I work with you on the final agreement to ensure it is the one that saves you time and money. Having me on your side will give you control and ensure you get the right property on the right terms.

 

In summary, getting commercial property advice before you embark on your journey will ensure you:

 

• finish up with the commercial property that suits your particular business needs, and 
• negotiate the best possible lease terms for you (rather than for the landlord!), 
• avoid costly mistakes and 
• save money, time and hassle

 

Click here to find out more about my commercial property search, business relocation and lease negotiation support services.

Having been in business for over 35 years, I am very lucky to be in a position where a good number of my clients come via referrals. I never know where my next referral is coming from, but I connect regularly enough with my network in a variety of ways to nurture my contacts and keep the wheels turning. In fact, I’m not alone in this! A 2022 study by Small Business Trends found that 43% of UK businesses cite referrals as their top way to get new clients. This makes referrals the most popular marketing channel for UK businesses, followed by social media (27%), networking (17%), and content marketing (13%). 

The study also found that referrals are a particularly effective marketing channel, with 85% of businesses reporting that they have a high conversion rate from referrals. I can understand this, as referrals coming from people who already know and trust the business in question mitigate a lot of the risk of trying a new business out. In this blog I share some top tips on how to make the most of referrals as a source of quality leads for your business – and for others around you!

1. Make it easy for people to refer. Include a prompt for referrals everywhere you might engage with a happy client – for example on your website, in your email signature, and on social media. You can also create referral cards that your clients can hand out to their friends and family. When you ask a client or a member of your network for a referral, be specific about the type of person you are looking for. For example, I often remind my network that I can help business owners at any stage of taking on or relocating business premises, from property search right through to lease negotiation. 
2. Ask for referrals at the right time. Don’t wait until the end of your client project or programme to ask for a referral. Instead, ask at a time when your client has expressed satisfaction with your product or service, such as after they have seen a tangible shift or result. This is often the ideal time to make use of this momentum in your relationship.
3. Track your results. This will help you to see which referral requests and strategies are most effective for your business. You could even use a customer relationship management (CRM) system to track your referrals and other customer data.
4. It may be business, but make it personal. When you ask for a referral, be sure to personalise your request. Explain to your client or contact who you are looking for, or why you think someone they have mentioned to you would be a good fit for your product or service. Once a client has referred you to someone they know, don’t forget to follow up with them to thank them and to see how the referral went. You may also want to offer them a small gift as a token of your appreciation, but a handwritten note, a phone call, or an email will go a long way!
5. Give more than you receive. Don’t forget that time spent nurturing your network is always a wise business investment. For every referral you’re asking for, try to give at least one referral to someone else, if not more! It’s a two-way street, after all.
6. Consider offering an incentive. This could be a discount, a free product or service, or even a bottle of gin! The incentive should be something that will motivate customers to refer people they know to your business.

By focusing on these basics you can ensure you are not only making the most of referrals for your business but nurturing your network by referring others too. Who will you write a referral for today?

They say first impressions count and nowhere is that more important to your business than the building you occupy. But first impressions are just that – impressions. To ensure your business premises accurately reflect your brand and provide the best possible experience for your staff, suppliers and clients, you need to carry any improvements you make through to the whole experience. It’s not just about jamming a fuss-ball table in and hoping for the best, it’s about truly understanding how your employees work best, how your suppliers need to interact with and access your premises, and of course, what your building is saying about you to prospective clients and customers. In this blog I’ve outlined some of what’s possible when it comes to improving your premises, alongside what I believe to be actually valuable. They are all soft changes that each has a cost but put together, they will have a major impact on so many aspects of your business.

 

• Keep it clean: It may sound basic and obvious but there’s no doubt that a clean and well-organised premises makes a good impression on prospects, existing customers, employees and staff, but it can represent a lot of work to keep on top of! Make sure to keep your premises clean and tidy on a regular basis by employing a good cleaning contractor or someone in-house to keep everything in good order – including your outside space. When it comes to first impressions, a clean, crisp image should not be underestimated!
• Make it welcoming: What kind of experience do you want to create for your customers? Whilst security is always important, the entrance to your building should be welcoming and inviting. You could add some plants, flowers, or other decorations to make the space more inviting. I once visited a client’s head office and although an electric latch let me in, there was no one to greet me and I sat in reception for 20 minutes before I saw another human! Apparently, they didn’t bother with their building entrance as they were too embarrassed to welcome people to building. I was able to change all that. Ask yourself: how will visitors be greeted on entrance to your building and what kind of impression do you want to make?
• Lay on some extras: Offering refreshments to clients, suppliers or interviewees is a great way to show them that you appreciate their time and their visit. This could include coffee, tea, water, or snacks – or you could get more creative with branded items like pens or notebooks.
• Lighting: Good lighting can make your premises look more inviting and bright, alongside boosting the productivity of your workforce. Consider using natural light whenever possible, and install bright and energy-efficient lights in areas that don’t receive much natural light. I once visited a firm of accountants in Southampton only to discover they occupied a building with no windows. No, really!  I really felt for their staff – they must have felt like moles!
• Comfort: Make sure your premises are comfortable for everyone who uses them. This means providing comfortable seating, adequate ventilation, and a temperature that is comfortable for everyone (not easy, I know). Also don’t forget to consider the layout and general standard of your toilets! Do your toilet cubicle doors go floor to ceiling or have gaps? Will you offer paper towels, an air dryer or both? Don’t forget a well-placed (and well-maintained!) extractor fan can make a big difference!
• Layout and furniture: Developers tend to build to a generic template and create a blank canvas for you to customise as you wish (within the confines of your lease terms!). To make the best use of your space, ask yourself how your staff work together? What spaces will they need, e.g. pods, webinar rooms, breakout rooms or larger meeting rooms? You may need the creativity of a fit-out contractor. The furniture in your business should be comfortable and practical as well as attractive, and it should also reflect your brand. Invest in furniture of a good quality, where possible, to avoid having to replace it too quickly.
• Slick signage: Make sure your signage is clear and easy to read – and uses your branding. This will not only help customers find their way around your premises, but also ensure a consistent experience for suppliers and new staff members.
• Security: Make sure your premises is secure and you have sufficient and appropriate security cameras, locks, and alarms. Although these can seem like hefty investments, you only need to weigh them up against potential losses and disruption to your business  – through something like a burglary – and they quickly become a no-brainer.
• Accessibility: Make sure your premises is accessible to people with disabilities. This means providing ramps, wide doorways, and accessible toilets where necessary, with appropriate signage and colour contrasting. Also, ensure you have a disabilities policy and provide adequate staff training.
• The personal touch: Adding personal touches to your premises can make it feel more unique and welcoming. This could include things like artwork, plants, or photos. Think about your staff – what do they need, to feel inspired and motivated? Leaning on your logo and brand elements – for example using your brand colours – is a great way to create a cohesive and visually appealing space. You can use them in your signage, furniture, and even the walls of your business.
• Feedback: Don’t forget to ask your customers and employees for feedback on what they think of any changes you make and how you can further improve your premises. Even better, involve them in the process from the outset and take a consultative approach. This will help you to identify areas where you can make improvements and spend your cash in the right places.

 

As always, when implementing any changes in your business premises, the overarching question is ‘what does the business need?’ Consider the needs of everyone who interacts with your premises and what will ensure a positive benefit to your business, then ensure you get your landlord’s consent to the necessary changes and reinstatement at the end of the lease That way you can’t go too far wrong!

 

If you are inspired to make some changes but don’t have the connections to providers and advisers in the various points mentioned, I have spent twenty-five years building a network of trades and professions I can put you in touch with. Get in touch and I’ll be happy to help.

With the current business failure rate in the UK at around 60% (according to Startup Genome) there can be no doubt that running a business is ‘a risky business’! However, I’m sure you’ve heard the phrase ‘no risk, no reward’ so it’s also clear that if we aren’t prepared to take at least some risks, we invite the larger risk of failure. Having survived (somehow!) several financial crises and recessions over the last few decades, I put together this blog to examine some of the best ways to manage risk in business.

Identify your risks.

The first step to managing risk in your business is to identify the risks that your business faces in the first place. Conduct a risk assessment and list out the potential risks that could impact your business, as well as the likelihood and impact of each risk. Don’t forget to consider both internal and external factors, such as financial conditions and market trends.

Evaluate your risks. 

Once you have identified your risks, the next thing you need to do is evaluate them. How likely is each risk? And what kind of impact would it have on your business if it came to pass? Score each risk on both scales from 1 – 10 to help you identify those that are the highest likelihood and those with the highest impact, so you can clearly see your priorities.

Develop risk mitigation strategies. 

Your next move is to develop risk mitigation strategies, where you define the necessary steps to reduce the likelihood or impact of each risk. Here, you have four main choices, which I like to call the 4 ‘A’s of risk: avoidance, abatement, acceptance or accession. 

• Risk acceptance: This means simply accepting the risk, as it stands! Often, simply being aware of potential risks is enough.
• Risk abatement: This means reducing the likelihood or impact of the risk. For example, in my work with my clients, much of what I propose to include in a Heads of Terms document is akin to an insurance policy. If you’re taking on an existing building rather than a new one,  ensuring you commission a full schedule of condition ahead of time and having it attached to the repair covenant, will help to reduce the risk inherent in an older building and ‘insure’ you against potential repairs in the future. 
• Risk avoidance: This means avoiding the risk altogether. For example, you could avoid the risk of product liability by not selling products that could be dangerous. For example, I often ensure that any Rent revision clause in a commercial lease includes a cap. This ensures they avoid the risk of future rent increases that fall outside of their planned budget.
• Risk accession: This means transferring the risk to another party. For example, subletting in part. Including this provision in your commercial lease terms provides you with an insurance policy against your business shrinking or needing to adopt a hybrid model and requiring less space. With this agreed up front, you can lease any space you don’t need, without being in breach of your lease. Of course, you could renegotiate your lease later on to include this – but it will likely come with a price tag.

Implement your risk mitigation strategies. 

Once you have considered which of these risk mitigation strategies you might want to use for your high-priority, high-impact risks, you need to implement them. Consider the timeline for putting them in place, along with any external guidance or support you might need. Once they are in place, you’ll need a reliable way to monitor your risks and ensure your mitigation strategies are working effectively.

Managing risk is an important part of running a successful business but can provide interesting opportunities for growth, if done successfully. By assessing your potential risks and having strategies in place, you can help to protect your business from the unexpected and shore up your foundations for the future.

There are many ways to reduce costs or save money in a business. The most important thing to remember is to quantify what you “don’t know you don’t know”. Ensure you have a budget, you’re closely monitoring your income and expenses, and you regularly set aside time to educate yourself in areas that affect your finances. Sticking your head in the sand or ignoring areas that look like a big unknown is not a long-term solution. However, armed with the salient facts and where your money is going, you’ll be able to make the best decisions for you and your business now and in the future. And remember, there is always someone in your network who can connect you to that expert adviser.

1. 1. Negotiate better deals with suppliers: A quick way to save money in your business is to improve the terms you have with your suppliers. This can be done by comparing prices from different suppliers, asking for discounts, or negotiating longer payment terms.  For some of these, where you have existing relationships, you’ll want to do them yourself.  For the rest, there are brokers and experts who will do better deals.  For both insurance and energy, ask me about the brokers I use. As an obvious major cost, you might consider renegotiating the terms of your premises lease or moving premises altogether. Either way, assessing the long-term financial risks inherent in your premises, is key. For example, a client of mine found premises where the heating and cooling plant was nearing the end of its life. Of course, the estate agent details didn’t say this, but I was able to draw the client’s attention to the fact that they would be liable for replacement, and soon! I negotiated that the landlord would replace the plant before my client moved in saved them nearly £1m.
   2. Reduce waste: Another key area to consider is waste. If you’re not sure of the status quo then it’s time for an audit. What are your recycling levels like? Could you use less energy or water? Don’t forget that time is a resource that can easily be wasted too! Could your work processes be more efficient? Could you automate repetitive tasks? With the advent of AI and simple automation platforms such as Zapier, technology is your friend when it comes to saving time (and money!).
   3. Increase revenue: Alongside reducing your costs, it’s essential to look at how you could increase your revenue. Of course, putting your rates up is the very simplest way to do this – it’s surprising how reluctant businesses are to do this but in fact, how rarely it has a negative impact. You could also do this by increasing your sales to existing customers, expanding into new markets and attracting new customers, or by offering new products or services. Find ways to connect with and collect feedback from your customer base to understand what problems they have – then offer them products and services that provide a solution. I know some of these things might seem basic, but we all need reminding of the basics sometimes!
   4. Reduce employee turnover: An often-overlooked way to save money is through improving employee retention. As a first step, ensure you are offering competitive salaries and benefits, creating a positive work environment, and offering your employees attractive opportunities for professional development. It’s worth remembering that the cost of recruiting to replace a lost employee is far greater than that of retaining the ones you already have.
   5. Take advantage of government programs: Research or ask around your network. There are likely to be many national and local government programs that could help you save money or access funding, for example, grants, loans, tax breaks, or other forms of assistance.

 

Need help to quantify what you “don’t know you don’t know” about your business premises?

If you are currently assessing where you might find cost savings in your business, let’s talk. I have two ways I can help:

• My online courses. At just £275, the question you have to ask yourself is: is it worth the investment to upskill and mitigate further risk? Seems like a no-brainer to me! In fact, I’m so confident I’ll save you money down the track, that if you don’t save multiples of your investment in the course in your next business premises transaction, you can have your money back. Click here to find out more.
• My lease tutorials. This is your opportunity to mine my brain one to one, for everything you need to know in order to negotiate the right lease terms for the right premises for your business. Click here to find out more.

If your business is growing and doing well, moving premises can be an inevitable side effect. If you’ve exhausted all the options to adjust the configuration of the space or the lease terms in your current premises, it’s time to move on. When you do decide to move your premises, although you’re likely to be excited about what your new premises can deliver to your business, you’re also likely to have a list as long as your arm of logistical, physical, and financial concerns to tick off. 

Amongst the legal obligations, financial impact, and communication with your customers, it can be easy to feel overwhelmed and wonder why you’re doing it at all. However, moving business premises represents a fantastic opportunity for your business, not just in terms of the physical space to expand into. Here are some common considerations and challenges you may face during the process, with a helpful reframe to shed light on the positive impact it could have on your business. 

1.     Cost implications: While you may be concerned about the financial impact of moving and paying close attention to the costs associated with leasing new premises, a solid plan will go a long way to addressing your concerns. Planning at least a year ahead will ensure you have time to address issues early, for example, the impact of relocating equipment and inventory, updating technology infrastructure, and potentially facing downtime during the transition. Equally, building a plan 12 months ahead provides the opportunity to explore as an option, renegotiating your current lease, enabling you to stay put and saving the cost of moving altogether!
2.     Disruption to operations: Moving a business can disrupt day-to-day operations, leading to the potential loss of productivity and revenue. However, by overlapping your premises leases by a few weeks or months, you can coordinate a smooth transition and minimise the impact on your customers, employees, and overall business operations. This gives you plenty of time to plan and also to check your obligations in your current lease, to ensure you know what’s coming in terms of dilapidations. Also, think about repair and condition up front in your new lease so you know what’s coming next time! Including an overlap in your leases might sound like an extra cost, but this investment will ultimately save you not just money, but also time, stress, and hassle.
3.     Location and accessibility: Choosing the right location is crucial for the success of your business. Your new premises need to offer convenient access for customers, suppliers, and employees, so you may need to consider factors such as proximity to target markets, transportation infrastructure, parking availability, and visibility. Again, time is your friend here. Give yourself time to do the proper analysis and answer the question “What is it that the business needs?” Make a list of all your needs in terms of employees, suppliers, and customers, and map out your criteria for shopping for your property. Doing this work well ahead of time will ensure you can consult with your staff and suppliers and get them on board with the move. What are their expectations, wants, and needs? Ultimately, this is a chance to understand how things would change if you had premises that better reflected the needs of your business, without being up against the clock.
4.     Customer retention: You may be concerned about retaining your existing customer base during the move, as they may be inconvenienced by the relocation or may perceive it as a sign of business instability. However, with the right communication and reassurance during the transition, you can minimise any negative effects on customer loyalty. Your premises move is also a chance to re-engage with previous customers, refresh your brand or update your message to attract new customers. For example, I previously supported a garage mechanic from a main town to a nearby village. He was initially concerned all his town-based customers would abandon him. However, they didn’t because he was known for his fantastic customer service. Not only that, but he also picked up all the village customers. He has never been busier! At the end of the day, nurturing your loyal customers will see you through your relocation – and anything to come in the future!

By addressing these concerns in good time and planning your move meticulously, it is not only possible to mitigate potential risks but to navigate the process of moving business premises smoothly and take advantage of a host of new opportunities for your business. For a full moving checklist, including lots of other areas for consideration and top tips for a successful move, check out my latest free download here.