Proven Team Building

Gary Baird Melanie James

INTRODUCTION

About Gary

� My wife and I have been running our Amazon business since September, 2011.

�  I will join my wife full time in June of this year.

� We currently have 7 team members who source, ship, handle returns, etc.

� We have 10 VA’s who work for our daily deals list.

About Melanie � My husband and I work together and have

been entrepreneurs since 2009 � We have been Amazon/eBay sellers since

2013 � We currently have 8 team members

working on Amazon and non-Amazon tasks

�  Since we started, we have trained 16 people to do Amazon processing and/or buying for us

About Melanie � We partnered with a company in another

state that needed work for 6 people during the off-season

� We set up an Amazon business for them, with their team processing inventory

� With about 10 hours of training, their team receives, preps, lists, and ships FBA inventory independently

� We have had no major problems and most days we received no support calls

Does This Sound Like You? � The thought of growing your business is

exhausting � You don’t have time to improve your

business because you’re so busy just maintaining it

� You pass up real opportunities because you simply don’t have time to do the work involved

� When you take a week off, your business (and income) suffer

Does This Sound Like You?

� Your house is constantly full of products and it’s causing a strain on your family

� You work more hours now than you did at a “real” job, and there is no end in sight

� You live in fear that if you get sick or anything else happens to you, your income will soon be gone!

The Bottleneck

� Knowledge/Expertise � Money � Opportunity � Time

Course Overview

� Why you need a team � Address common concerns about hiring � Prepare your business to hire by

systemizing your processes � Discuss employees vs. contract workers � Compensation and job benefits �  Finding potential candidates, interviewing,

and talking to references

Course Overview

� Detailed process for training inventory processors and buyers

� Communication between team members � Monitoring and working with your team

remotely � Tips for handling problems � How to get “buy in” from team members � Tips for managing and building a team

Recommended Books � EntreLeadership

by Dave Ramsey

� The E-Myth: Why Most Small Businesses Don’t Work and What to Do About It by Michael Gerber

� Good to Great by Jim Collins

WHY BUILD A TEAM?

Why You Need a Team…

� Keep your business running even when you’re not there

�  Increase the productive capability of your business beyond yourself ◦ Hours of work ◦  Skills/knowledge ◦ Contacts/network ◦  Job specialization

�  Increase the value of your work time

Ways to Add Team Members �  Specialized services ◦  Accounting ◦  Feedback Management ◦  Sourcing Help ◦  Prep/Fulfillment

�  Software � Virtual Assistants (VAs) � Hire Contract Workers � Hire Actual Employees

A combination of these is often best

Planning Your Team �  Identify the tasks that you most need or

want to stop doing yourself ◦  Product prep/shipping ◦  Product research ◦  Listing creation/photos

� Choose the solution that will provide the best results and opportunities for continued growth

� As most businesses grow, hiring team members will eventually be advantageous

Why Hire Your Own Team?

� Manage your business the way you want � Handle inventory that prep centers won’t � Train people to source and buy inventory

for you � Merchant Fulfill orders �  Support team to help you grow your

business and make better decisions � Branch into other lines of business

Common Concerns

�  If I pay someone else to do this, I won’t make a profit ◦ You don’t have a business, you have a low-

wage job ◦ Don’t accept less for your work than you

could legally pay someone else ◦ Change the products you carry or your

processes to make 2-10+ times minimum wage per hour

Common Concerns (cont.)

� No one can do the job the way I do ◦ You are not a superhuman – if you can do it,

someone else can, too ◦ They may do it differently, perhaps even

better than you ◦  If you train well, the important things will

happen the way you want ◦ Holding on to control over insignificant

details will limit your potential and make you a slave to your business

Common Concerns (cont.)

�  I don’t know how to hire someone ◦ This is the time to find an accountant to

advise you on the legal details ◦ This course is going to help you with the rest

� How can I trust someone else? ◦ Make careful and informed hiring decisions ◦  Set up processes to create accountability ◦  Set up ways to monitor your team ◦ We’ll talk more about this later…

Common Concerns (cont.)

�  If I train them to do this job, won’t they just go start their own Amazon business and compete with me? ◦  Probably not—most people don’t actually

want to be entrepreneurs ◦  Be upfront about the expectations to not

compete (even sign an agreement) ◦ Treat them well and they will have little

incentive to do so ◦  If they do, your business will recover

Are You Ready to Hire? � Are you an expert at your business? ◦  You can’t teach what you don’t know ◦  You can bring on experts, but you will often pay

more and/or lose some control

� Do you have a consistent system for doing the work you plan to hire out?

� Can you give up a little control in order to grow your business and gain back your time?

� Do you have more valuable tasks to do? � Can your business financially afford to hire?

Need Better Help?

SYSTEMIZING YOUR BUSINESS

Systemizing Your Business �  Your system or business processes will drive

how you train your team �  Identify and document your process for

doing each task in your business ◦ Write down step-by-step as you work ◦ Make it as complete and simple as possible ◦ Minimize exceptions

� Have someone else work through your process following each step exactly ◦  Correct mistakes, Clarify confusions, Simplify!

� A good system will: ◦  Decrease errors ◦  Decrease frustration for you and your team ◦  Allow your team to work more autonomously ◦  Give you a sense of control over your business as

you bring others in ◦  Increase efficiency and profitability

�  You must have a defined system before you can teach it!

�  Try to build yourself out of the process as much as possible!

Systemizing Your Business (cont.)

Tip from Brett

“I spend the majority of my time building systems of communication, and pouring information into key team members. Our business is only successful if I can transfer the knowledge in my head into our team. ”

Workspace

� Where will your team work? �  I highly recommend getting the business

out of your home � Having a dedicated workspace will

improve efficiency and open additional business options

Melanie’s system (for example) � Workspace Arrangement �  Receiving Inventory �  Prepping Inventory �  Listing and Shipping �  Buying � Daily Routine

� Use my system to help you create your own based on your own business and personal needs

Workspace

Receiving: Inventory stored until it is checked in.

Prep: Inventory needing prep and workspace for all product prep.

Shipping: Inventory placed on shelves awaiting shipment. Computer workstation to list and ship products.

Receiving � Check in inventory on Inventory

Receiving Form. ◦ Note any problems or discrepancies

� Move the inventory to the Product Prep Area

� The Inventory Receiving Form goes with the inventory through all of inventory processing

� Do not check in inventory without a receiving form

Receiving Form Example

Product Prep Flow Sheet

Shipping Area �  Products are moved from the Prep to Shipping

area with the receiving form �  Products are sorted on shelves by condition

(New, Used Good, Collectible Very Good, etc.)

Listing and Shipping

�  Set up an Amazon user account with limited privileges for the team to access

� Use listing software such as Seller Engine or Inventory Lab that allows you to separate the shipments as you list products

� The software automatically prices the items based on a pre-set formula (or the price can be added to the receiving form)

Listing and Shipping (cont.)

�  If a barcode is provided on the receiving form, scan that code when listing

� Pack up boxes and print shipping labels �  Schedule UPS pick up � Have reference sheet available for how to

handle common exceptions (i.e. ,hazmat, missing dimensions, restricted, etc.)

Communication

� Use Google Drive or Dropbox to share documents between computers

� Receiving Forms get saved in a shared folder and printed at the office

� Use Item Notes to mark specific comments on inventory for processing

� Use Problem Inventory Notes to mark inventory needing special attention

Communication (cont.)

� Based on the location and/or notes on all products, it should be clear to everyone the current state of all inventory and what needs to be done at any given time

� Have a shared email account to send instructions to the team (this can be the email address tied to the Amazon user account)

Tip from Brett

�  “The biggest problem is communication channels and training. We solved this by appointing ‘quarterbacks/leads’ that are in charge of all training and communication. All I have to do is make sure our quarterbacks understand the situation and it is their responsibility to communicate it to the rest of the team. ”

Daily Routine Overview

� Check the team email � Check Amazon for merchant fulfilled

orders � Check eBay for orders � Begin inventory processing �  Schedule UPS pick-up (if needed)

Once you have a system… it’s time to find a team!

HIRING PROCESS

Employee vs. Contract Worker �  You control: ◦  Schedule ◦  Work flow ◦  Place of work

�  Trained on the work to be done

�  You withhold payroll taxes (state, federal, Social Security, etc.)

�  You pay additional employer payroll taxes

�  You must file with several government agencies

�  The team member controls their schedule

�  May provide same service for other businesses

�  Provides skills and has own tools

�  Invoices for work completed

�  If they earn > $600/yr, you issue a 1099 Form

�  They are responsible for all taxes

Consult an accountant about which you should choose https://www.sba.gov/content/hire-contractor-or-employee

Compensation

Hourly rate: �  Must pay at least

minimum wage �  Consider a starting

rate and a small raise once orientation is completed

Commission: �  Pay based on % of

products sourced

Pay per task: �  Set rate for each

item processed ◦  What about prep? ◦  How will you track

this?

Bonuses: �  Performance bonuses

for individuals or the team as a whole

Compensation (cont.) �  Consider what your pay structure actually

rewards (speed, accuracy, loyalty, etc.) �  Chose a means of compensation that is fair and

that you can afford �  Provide room for some advancement as

additional tasks and responsibilities are added �  Be aware of other expenses: ◦  Payroll taxes ◦  Workers’ comp. insurance

�  Err on the side of starting low—you can always raise it later or give bonuses when you better understand your business

Tracking Time/Tasks

� Make them responsible for accounting for their work time or tasks

� Track hours or tasks in a spreadsheet on Google Drive

� Use clocking software or website (i.e. TimeTrex https://www.timetrex.com/download.php)

�  If pay is related to sell-through of products, track with a SKU code that you can easily search for in your sales report

Other Job Benefits �  Flexible schedule � Good work environment ◦  Indoors/air conditioned ◦ Not standing for hours at a time ◦  Low stress ◦  Good Co-workers

� Able to listen to music while working � Respected and valued team member � Have a great boss!

Finding Team Members �  Family and friends ◦  Pre-established level of trust ◦ May have higher likelihood of expecting to be

treated like a “partner” and receive a “fair cut” ◦ May not see this as a “real” business ◦ Carefully consider the possible implications of

merging work and family/friend relationships ◦  Establish clear expectation on both sides up

front ◦  Consider a temporary arrangement that is easy

to end without damaging the relationship

Finding Team Members (cont.)

� Ask friends and family to refer anyone they trust who is interested in the job

� Run ad on Craigslist, newspaper, facebook, local job site, etc.

JOB OPENING: We are an online retailer looking for a self-motivated, efficient team member to prepare inventory and create listings for online sale. This individual will also process orders, package, and ship inventory regularly. No prior experience necessary. Approximately 20 hrs/wk. Flexible schedule. Call (###) ###-#### or email me@myemail.com

Application

� Have all applicants fill out an application � Purpose of application: ◦ Gathers information about applicants ◦  Shows their actual level of interest ◦  Establishes this as a “real” job

� When applicants call or pick up an application, talk to them and learn a little about them

Narrowing Candidates

� Look up all candidates on E-Verify � Look up their Facebook account � Only hire people who can legally be hired �  Schedule an interview with anyone you

would consider hiring

The Interview

�  Interview with a business partner or trusted friend present ◦ They’ll notice things you don’t ◦ Help you talk through your decision later,

having met the candidates

The Interview (cont.)

� Briefly introduce yourself � Briefly explain the job � Ask interview questions ◦ Listen, ask follow-up questions, and listen

� Give them an opportunity to ask questions about the job

The Interview (cont.) � Basic exercise to demonstrate skills: ◦ Have several products of various conditions

or with different defects ◦ Ask the interviewee to tell you about the

condition of each item ◦ You are looking for: �  How well they notice details �  How thorough they are in checking the products �  How well they seem to understand what

information would likely be important to their job and to the customers

The Interview (cont.)

� Let them know when they can expect to hear if they got the job

� Write down notes before moving on to the next interview

� Don’t hire on the spot—give yourself time to talk it over and call references

� Avoid hiring people only because they need the job

Talking to References

� After the interview, call the references provided (personal, past employment, etc.)

� Explain the reason for your call “My name is Melanie and I am calling because Mary has applied for a job with us and listed you as a reference. Do you mind if I ask you a few questions?”

Talking to References (cont.) � Questions: ◦ How long have you known this person? ◦ The job they are applying for is very

independent, how well do you think they will be able to work with little or no supervision? ◦ How honest would you say they are? ◦ How well do you think they can learn new

tasks? ◦ How well do they get along with other

people? ◦ How reliable are they?

Talking to References (cont.)

� Even though these references were specifically chosen by the candidate, it is always worth calling them!

�  It is surprising what people will tell you if you ask and listen carefully to what they say (or don’t say)

Tip from Brett

“Hire people you would love to work with. Trust is the most important factor. You must be able to trust them 100%.”

ONBOARDING AND TRAINING

Orientation

� New hire paperwork (your accountant can probably provide you with all needed paperwork)

� Non-compete agreement � Company policies (attendance/time off,

dress code, computer use, cell phone use, etc.) ◦ Most things won’t be a problem if everyone

knows the expectations up front

Orientation (cont.) Orientation Process � Orientation checklist of skills expected to

be completed in a certain time frame �  If the skills are not mastered in the time

frame, their job may not continue �  Show Amazon video explaining what

happens to our inventory – this helps them understand what their work is preparing for (https://www.youtube.com/watch?v=dAXdeqcHBp4)

Training Process

Process Overview: � Explain and/or demonstrate skill � Give them an opportunity to try it out � Answer questions & correct mistakes �  Spend time working with and experienced

team member

Training Process (cont.) � Adjust timing to meet your needs and

orientation schedule

One Week Training Plan: � Day 1 – Receiving & Condition Classification � Day 2 – Product Prep � Day 3 – Listing and Shipping � Day 4 – Skill Demonstration � Day 5 – Begin Regular Work

Receiving Training �  Explain the different types of inventory they

will receive (RA, wholesale, liquidation, etc.) � How to check it in on receiving form � What to do about damaged products � What to do about missing or extra products � Where it goes after check-in Demonstrate, then have them “Receive” a

sample box

Condition Classification

� Explain the various conditions (new, used, collectible)

� Provide a Condition Classification Guide for reference

� Provide sample products in various conditions for them to classify using the reference guide

Condition Classification (cont.)

Several points to emphasize: � Used toys must be listed as Collectible � Baby, Health & Beauty, & Grocery can

only be sold on Amazon as New �  Incomplete or non-functioning products

cannot be sold on Amazon � Condition descriptions for Used/

Collectible products

Prep Training

� Explain Amazon’s prep rules � Explain the importance of correct prep ◦ These are Amazon’s rules, not yours and they

must be followed

�  Show how to perform prep tasks ◦  Poly bagging, bubble wrap, price tag removal,

etc.

�  Show how to use Prep Flow Sheet

Product Prep Flow Sheet By walking through the flow sheet together step-by-step you introduce them to every potential type of prep and product they may encounter

Prep Training (cont.) � Have sample products which need all of

the possible preparations � Have them use the flow sheet to

determine and do the correct prep for each product

� Answer questions only after they try to work through it on their own

� Make corrections �  Show where inventory goes when prep is

complete

Listing Training

�  Show how to list an item ◦ Directly through Seller Central, and/or: ◦ Using inventory management software

� Have them demonstrate basic listing �  Show how to correct listing errors and/or

delete listings

Listing Training (cont.)

� Use test products to show various exceptions (hazmat, missing dimensions, not found on Amazon, multiple listing options)

� Have a Troubleshooting Guide available to document common exceptions

Shipping Training

�  Show how to add products to a shipment (this may be done during the listing process)

� Use Shipment Labels to divide products based on their warehouse destination and keep a record of who made the shipment

� Have them demonstrate adding products to shipments

Shipping Training (cont.) �  Explain criteria for when a shipment is

“complete” ◦  Do you ship each day? ◦  Do you wait until shipments are a certain size?

�  Show how to pack the boxes �  Show how to purchase postage and label

the boxes � Allow demonstration �  Teach how boxes will be shipped out or

picked up

Skill Demonstration Activity �  Set up sample tasks that put into practice as

many skills and decisions as possible �  Encourage them to work through questions

with reference guides provided � Answer their questions as needed �  Review problem areas identified by the

exercise

�  If training multiple people at one time, this could be a competition with a reward

Get to Work

�  Finally, start processing actual products � Work with them, allowing them to take

the lead so they can see what questions they have

� Provide (nice) correction as needed ◦  “I might not have mentioned this, but…” ◦  “We went over a lot of information, so you

might have forgotten…” ◦  “That is a common mistake, but…”

Buyer Training �  In most cases, have people start as

processors and move on to buying as they demonstrate: ◦  Trust & dependability ◦  Understanding of Amazon ◦  Ability to follow instructions

� Make buying guidelines as clear and as simple as possible

� Minimize exceptions �  Set clear guidelines for what they can

purchase and what needs approval ◦ Max $ amount, sales ranks, etc.

Buyer Training (cont.) Follow this process over several buying “sessions”: �  Explain/show at store/online �  Let them make decisions while you observe �  Make corrections �  Allow independent demonstration with

evaluation afterwards (start with a low budget) �  Limit spending amount and volume until they have

demonstrated competency �  Remember that ranks and prices change constantly

—it might have been good yesterday when they bought it, but not anymore

Communication

� Buyer adds products to a master Buy List that tracks price, location, and who purchased it

�  Save a copy of the receipt or invoice to a Google Drive or Dropbox folder (File name: YYYYMMDD Store Name)

� Buyer creates listing, if needed, so that an ASIN is assigned and the product is ready for prep

Communication (cont.)

� Buyer creates Receiving Form with barcodes for ASINs

(www.Barcodez.net, Code 128 format)

Handling Inventory Purchases �  You must have a high level of trust with your

buyers �  Give them cash to buy at yard sales ◦  You have no choice but to trust them about how

much they pay for products �  Whenever possible, use discount gift cards at

stores and online �  When necessary, use a company credit card (not

a personal card)—limit the number of people who have access

�  If using a credit card, know what purchases are authorized so you can monitor for fraudulent purchases

Handling Questions After Training

� Be open to any questions that your team has—it’s far better for them to ask than assume

Handling Questions (cont.)

� Never make them feel stupid or intimidated for asking a question

�  If appropriate, ask them what they think the answer is and correct as needed—this will help them gain the critical thinking skills self-confidence they need

Handling Questions (cont.)

� Tell them the answer, and then direct them to where they could have found this answer on their own (guide book, flow sheet, reference, amazon.com help, etc.)

�  If frequent questions to things they should know persist, ask them to look it up and then report the answer back to you

HIRING/TRAINING A VA

Adding a VA to Your Team

� How can I use a VA to grow my business? ◦  Sourcing product ◦ Creating Listings ◦  Editing Photos ◦  Social Media Promotions ◦ Running Back End Reports ◦ Write Programs

Where to Find a VA

� Upwork.com � Onlinejobs.ph �  Freelancer.com �  Fiverr

The Hiring Process

� Create a detailed ad that clearly explains what you want the VA to do.

�  Select 5-10 of the best candidates � Communicate via e-mail and Skype � Trial run to narrow the field �  Select 2-3 for a final trial � Give more difficult tasks and directions �  Select your new VA

MANAGING YOUR TEAM

Monitoring Your Team Remotely

�  Save Receiving Forms and Shipping Labels that record who handled what inventory

� Monitor the computer with ActivTrak (www.activtrak.com)

� Make a habit of going to your office at unpredictable times so they know you could show up at any time

� When possible, have multiple people working at the same time

Managing Remotely (cont.) � Use Team Viewer or Remote Utilities to

allow remote desktop access to the team computer(s)

� Most issues your team may encounter can be resolved remotely by logging in to your inventory software or Seller Central

� Use Google Drive or Dropbox to share files

�  Send instructions to the team via the shared email address and/or text

When Problems Happen

� Consider if this is a true problem or just a different way of doing something

� Realize that almost any error can be corrected or recovered from

� Don’t get angry � Look for how your training failed � Look for how your process can be

improved to prevent this error

When Problems Happen (cont.)

� Consider the problem as a learning experience

� Let the person know (nicely) about the problem ◦ They can’t fix a problem they don’t know

about ◦ Your entire team and business is affected if

you fail to educate and correct problems promptly

When Problems Happen (cont.) � People may leave your organization for

lots of reasons: ◦ Don’t panic ◦ No matter what happened, be kind ◦  Look at it as an opportunity to fix a problem

or find a more compatible team member �  If you need to let someone go: ◦ Take action soon ◦  Be honest and direct ◦  Be as kind as possible

Tips for Managing a Team (cont.)

� Call your employees your “team members” (and treat them as such!)

� Empower your team to contribute their ideas and process improvements

� Make it about your team: recognition, bonuses, consideration of their needs They don’t get excited about making YOU money

Tip from Brett

“The little things have a big impact. Pizza days are a big deal. Their own desks. Nice chairs. Personalized water bottles. Personalized shout-outs. The small things are not always first priority to me but I always need to remember the impact it will have on my team. ”

Tips for Managing a Team (cont.)

�  It’s a lot easier for everyone to correct problems early on

� Be the kind of boss you always wanted ◦  Be kind and fair ◦  Expect every team member to do their job

well for the benefit of the whole team

� Encourage a “low-drama” atmosphere

More Advice

� Consider hiring two people rather than one to start out ◦  2 at 15 hours/week rather than 1 at 30 hours/

week ◦ Allows for easier training and they can remind

each other about how to do things ◦ Minimizes impact to your business if one

leaves or you need to let one go ◦ Minimizes temptation for dishonesty

More Advice

� Plan ahead to have a steady stream of inventory

� When things start to pile up, avoid jumping in and doing the work for your team

� Wait to hire more help until you consistently need additional help

�  For seasonal volume, consider hiring temporary workers to do basic tasks

More Advice

� Continue to train new additions to the team yourself until you have someone in a manager-type role to take over ◦ This prevents misconceptions or shortcuts

from being passed on ◦  Prevents gaps in the training ◦  Provides a good opportunity to offer some

re-training to other team members, even if they are only overhearing the things you say

GAINING LOYALTY AND “BUY IN”

Gaining Team Member “Buy In”

�  Job enthusiasm and high performance is

first and foremost a HIRING issue ◦ Get the right people on the bus and you’ll

rarely struggle with getting them to perform ◦  Look for people interested in this job

specifically

Gaining Team Member “Buy In”

Once you have the right people on board: � Make team members feel valued and

respected � Encourage a culture of achievement and

enthusiasm � Explain why things must be done certain

ways � Ask people for their ideas or possible

solutions to problems

Gaining “Buy In” (cont.)

� Understand the purpose or vision of your business and share that with your team (or let them help you define it)

� Understand what drives your team members and what tasks interest them most

� Make incentive programs to reward high performance ◦ Only works well with the “right” people

Incentive Programs

� Outcome should be within the team member’s control

� Goal should be easily measurable �  If applicable, make progress visible to

team members so they know how they are doing

� Goals should be reasonably obtainable to avoid frustration

Incentive Programs (cont.) Ideas: � Competitive bonus for most items

sourced, highest value item, most items processed, fewest mistakes in shipments, etc..

� Group goal with a reward such as a pizza day, upgrade to office amenities, gift cards, etc…

� Employee of the month gets recognition and maybe a small bonus or gift card

Advancement Opportunities

� People feel valued and value their job when their feel they are making progress

� As people perform well over time, give raises

� As people master skills give them opportunities to do new things if they want to (progress to buyer, manager, product developer, manage social media, etc…)

Tip from Brett �  “I really wish I did some sort of advanced

training for our team members once a week that was voluntary for them to come to when I first hired them. We started doing an advanced class every Wednesday about  3 years into our business. It was a huge success. It gave team members opportunities and skills they would have never dreamed of. It has to be voluntary though. ”

Final Thoughts on “Buy In”

For those who refuse to perform to standards or bring a negative attitude to the team:

� Talk to them, explain, warn � Ultimately, invite them to seek

employment elsewhere (i.e. fire them)

NEXT STEPS

Next Steps…

� Document and test your business processes

�  Find people to join your team (local/VA) � Train them with a complete and organized

process

�  Focus your time on growing your business and team (“work on your business, not in your business”)

� Be an awesome boss! � Have fun taking your business as far as it

can grow!

Proven Team Building Bonus: Tips For Leasing Workspace

Determine Your Needs � Make a checklist before you start looking � Must Have ◦ Minimum square feet ◦  Layout requirements ◦  Loading area ◦  Safety ◦  Price

� Nice to Have ◦  Location ◦  Private bathroom

Workspace options

�  In your (or someone else’s) home/garage � Office space � Warehouse space �  Space in a climate controlled Storage Unit � Rent a house/apartment

Costs to Factor in �  Rent �  Deposit �  Utilities and deposits (often higher for business than

residential) �  Equipment ◦  Shelves ◦  Tables/desks and chairs ◦  Computer/Printer ◦  Scale ◦  Supplies (scissors, box cutters, pens, tape, etc.)

�  Insurance �  City Business License (if you don’t already have one)

Things to Consider

� What cost can you realistically afford? � How much space do you definitely need

right now and within the term of the lease? (don’t waste capital on empty space)

� How safe is the area? � How will deliveries be handled? � Zoning (if considering a house/apartment) � Distance from you

Evaluating Options

� Look at multiple options � Take someone else with you � Look at the space more than once, if

possible � Drive by the locations at different times

of day and on the weekend � Talk to other business owners in the area

The Lease �  READ THE ENTIRE LEASE �  Things to pay attention to: ◦  Rent amount (and any additional fees) ◦  When rent is due & late fees ◦  Will there be an automatic increase to the rent ◦  The length of the lease term ◦  Who pays utilities ◦  Who is responsible for repairs ◦  What insurance are you expected to carry ◦  How the lease can be broken ◦  How the lease can be renewed ◦  Any restrictions on how the space can be used

Lease Negotiation

� Everything is Negotiable! � The worst they can do is say “no” which

still leaves the original offer on the table �  If you aren’t sure you understand

something – get it clarified

Lease Negotiation (Cont.)

� Common Requests: ◦ Reduction in the rent ◦ Remove rent increases (or place a cap) ◦  Shorter lease term ◦ Upgrades or changes to the office space prior

to moving in ◦ Right to sublease some or all of the space

Lease Negotiation (Cont.)

� Don’t seem too eager (this is NOT your perfect space that you absolutely must have!)

� Have multiple options to compare � Let the landlord know that you are

looking at another space that is offering a more favorable term

� Be kind, respectful & responsible (if they like you then they’ll want you as a tenant)

Moving in

� Make a list and take pictures of any damage or problems already present at move-in ◦ Keep a copy and send a copy to the landlord

� Post Business Hours ◦ This way shipping carriers will know when

you are open for deliveries

�  Invest in extra locks and/or a security system, if you feel it’s necessary