If you’re launching a new business, the list of unknowns can seem daunting. To untangle those worries, it’s smart to ask the right questions.
The answers will be different depending upon the municipality, the landlord and many other factors, but by asking the right questions, you’ll be on your way to finding the answers that apply to you. This will limit unknowns, manage risk and position your business for success.
We’ve compiled a list of key regulatory and commercial real estate questions to help get you started. These questions obviously don’t cover every possible situation you’ll encounter, but we hope it gets you thinking about all the little details that can have big impacts on the ultimate success (or failure) of your business.
Key Municipal Regulatory Questions:
- Have you applied for a business license?
- If you’re selling a product, have you applied for a sales tax license?
- Have you confirmed that the use you’re interested in is allowed by zoning?
- If you are doing interior or exterior renovations, did you get a building permit?
- Will my use and/or renovation plans trigger any additional municipal tap fees?
- Did you apply for a new sign permit?
- Etc.
Key Questions & Considerations before committing to a Commercial Lease:
- Do I have a well thought-out business plan? A solid business plan provides the best indicator of whether or not you can realistically afford the commercial space you’re considering.
- Make sure you conduct basic cash flow forecasting so you have an idea of what kind of lease you can handle.
- Remember: The best commercial lease agreements are a partnership with your landlord. You and your landlord should have equal interest and confidence in your business plan.
- Evaluate whether your business type aligns with the property:
- Is there enough parking?
- Will my customers be driving, or are they pedestrians?
- Does the commercial space I’m considering accommodate my businesses’ use?
- Where are the water access points?
- Can I dispose of wastewater?
- Can I install a vent? Etc.
- Do I know what type of commercial lease is being offered?
- And do I understand the differences between the three primary commercial lease types? (Gross Lease, Triple-Net Lease and Modified Net Lease)
- Do I know the potential risks and benefits of these lease types on my business?
- Are the terms of the lease negotiable?
- What insurance coverage does the lease require?
And remember, when you get to the big decisions, consider hiring a good attorney, accountant or real estate professional to look out for your interests. Find one of these professionals in the Vail Valley Business Directory. (Link to VVP Directory)
Helpful Links:
Apply For A Business License: In Avon, Beaver Creek, Eagle, Gypsum, Minturn, and Vail.
