Retail lease learnings from Vic small biz commissioner

THE Victorian Small Business Commissioner has shared a number of tips to help small businesses choose an ideal retail lease and location.

These include the importance of choosing a location apt for the target market it intends to focus on, and obtaining a copy of the lease and a disclosure statement that includes floor plans and a list of outgoings.

“A retail lease is a significant financial and legal commitment that will shape your business’ trajectory for years to come,” Commissioner Lynda McAlary-Smith said.

“Consider your business plan, customer base, and potential foot traffic (and) make sure your desired premises is the right fit for your business.”

Further advice included taking time to understand key elements of the lease agreement such as permitted use, maintenance responsibilities, options to renew, notice periods and exit clauses, plus how rent will be calculated.

“In short, don’t forget to think about the what ifs before you commit,” Ms McAlary-Smith continued.

Finally, the commissioner said leasees shouldn’t be afraid to negotiate the terms of the lease.

“Landlords expect it, and (it) can save you significant money over the long term,” she said.

“Entering into a lease is exciting, but don’t let this emotionally charge your decision-making.

“If negotiating isn’t your strong point, consider enlisting a trusted friend or family member to help.”

The Victorian Small Business Commission (VSBC) offers support and information so business owners can grow their knowledge and make sure they understand their rights and responsibilities.

Find out more on the VSBC website.