FINANCIAL PACKAGING BLUEPRINT
FOR SMALL BUSINESS
October 28, 2024
Shane Minnis
You never get a second chance to make a first impression…
Assuming you want to get a great deal and maximize ROI on your next lease I’m going to help you make a solid first impression 🙂
A fundamental component of putting your best foot forward is providing a clear and compelling financial picture to landlords to address their risk concerns up front.
This helps you in multiple ways, such as:
- Higher likelihood landlords will lease space to you.
- Supports better terms (particularly security deposit, tenant improvement allowance and other concessions).
- Differentiates your offer against competitive offers for the same space.
If you’re a small business and not well established… I recommend gathering and considering the following information as soon as possible to be prepared when opportunities arise…
And to get a leg up should you find yourself in a competitive situation:
1) Entity
What entity will be on the lease?
2) Financial Statements
Last 2 years + year-to-date income statements, balance sheets, and cash flow statements for the entity that will be on the lease.
3) Business Plan
Don’t recreate the wheel here – you likely provided a business plan when you raised funding, simple and high level will work fine.
4) Owner(s)
Who are the owners involved with the business and who will be signing the lease?
5) Personal Guarantees
Is this something you’re willing or prepared to provide? If your business is a new venture and/or self-funded then don’t be surprised if landlords request personal guarantees.
6) Personal Financials
Last 2 years tax returns, current financial statements. Don’t be surprised if landlords request you complete a credit application and run a credit check.
7) Investor List
A list of previous and current investors.
8) NDA
If you require a non-disclosure agreement (“NDA”), then you’ll want to have this prepared in advance.
9) Other
Any other helpful details, insights, further descriptions, background or experience of investors/partners, materials, etc. The main goal here is to tie everything together and showcase your financials, team and investment outlook in the best possible light.
While the above information isn’t necessarily required, it will certainly help position you for the best deal possible and mitigate potential landlord concerns. Feel free to reach out with any questions, comments or to discuss further.
Dedicated To Helping You Get A Great Deal + Maximize ROI On Your Next Lease,
– Shane Minnis
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