If you are one of the many people who want to get away from the soul-crushing world of the cubicle, starting your own business may have a special appeal to you. Of course, the prospect of building a business from the ground up can often be a daunting one. Even starting a new franchise takes a lot of time and energy to get it to the point where you’re cash flow will be sufficient.
So what if you aren’t willing to take the kind of chances a new business requires? What if you want the freedom to be your own boss and the security of an already established job? The answer may lie in leasing an already established business. When you lease a business, you can have the best of both worlds: the freedom to work for yourself with the stability of an established business.
If this is the kind of step you are thinking of taking, here is what you need to know:
WHAT IS A BUSINESS LEASE AGREEMENT? Essentially, it is a rental agreement between you and the landlord who owns the property. Typically, Business Lease Agreements involve you leasing a pre-existing business as-is, with all the equipment, real estate space, etc. You are basically acting as a manager, but instead of being paid a salary, you lease the business from the owner and pay a monthly rent for the right to operate it.
WHAT KIND OF BUSINESS CAN I LEASE? Any business you want to. No matter if you are a business owner who wants to turn your business into the steady income of a leased property, or a prospective buyer who wants an established business to run for yourself, you can enter into a Business Lease Agreement if the other party is willing.
CAN I BUY THE BUSINESS OUTRIGHT? Maybe. The option to buy the business can be included in the lease agreement. Depending on the nature of the agreement and the desires of each party, appropriate option clauses may or may not be a part of the Business Lease Agreement.
WHAT DO I NEED TO INCLUDE IN THE BUSINESS LEASE AGREEMENT? ‘Leasing a business is a lot more complicated than simply renting space for a business. In addition to the pre-existing equipment, the lease agreement may contain clauses about properly running the business, the right of the owner to inspect or advise, options to buy, rights to automatic extensions, rights of refusal, etc. An established business requires a lot of attention to detail, much more so than a standard lease for real estate.
The desire to go into business for yourself and be your own boss is inherently appealing to a wide range of people. Because of the risks involved in starting a new enterprise, some people prefer the business lease option instead. No matter if you are leasing your business or considering taking on a business lease, you will need to be sure your Business Lease Agreement is sufficiently complete. A well drafted agreement will be the strong foundation upon which you can build your business, so be sure to get it right the first time.