unit one (1, 2, 10) Flashcards
(34 cards)
what are incidental expenses
The landlord’s property taxes, insurance, utilities, maintenance, common area, repairs
what is common area maintenance
Tenants share common area costs, janitorial services, landscaping, grass cutting, snow shoveling, and changing lightbulbs. Very rare that the landlords pay for this stuff
what is gross rent lease
Everything is included in their rent (utilities included in rent) (all in)
what is modified gross lease
All in lease but landlord wants property taxes (one incidental expense)
what is a net lease
Take square feet and monthly and add one incidental expense
what is a double net lease
two incidental expenses
what is a triple net lease
Three incidental expenses (most common)
what is % rent lease
Pay a base rent plus a percentage of sales
what is tenant improvement allowance
Landlord can lend money for improvements, or they can charge extra dollars per square foot
what are tenant inducements
Landlord gives time to get business set up. No rent for a certain amount of time. But they can still pay for triple net
what are trade fixtures
Things that you use in your space. It can be easily removed when you sell
what are turnkey/improvements
Taking on a franchise. You get the key, and the operation is already running (operation) landlord fixes a few things and then you can run it (improvements)
what are leasehold improvements
What you do to improve the place
what do you add up to get the overall price
price, inventory, goodwill and FF&E
what is an intrapreneur
they have the same skill set as an entrepreneur but they don’t want to run a business
is money the most important ingredient for success?
NO!!!!!!
what are crafts people
generally work alone, derive their sense of self-worth from their mastery of craft or trade
what are freedom fighters
seek financial independence, work hard and control their destiny, represents about 28% of small businesses, staff of 3-50 and grow 30% annually, college educated mostly women
what are empire builders
motivated by achievement, high growth rates
what percentage of sales comes from what percentage of customers
80% of sales from 20% of customers
what are the three ways to start a business
buy a business, create a business, or franchise
what are advantages of buying a franchise
Reduced risk/proven system, Easier access to financing/lower cash requirements, Purchasing power, Help with site selection, Equipment capabilities known, Established sales and marketing, Established relationships
what are disadvantages of buying a franchise
Product line may be old, Poor relationships/personnel may be unproductive, Inventory may contain lots of “dead stock”, Inherit any ill will that may exist, May be a poor location, Assets may be in poor condition, Less freedom and choice for the business
what are some myths about entrepreneurs
they are born not made, they dont have a boss, its for the young and energetic, a good idea is all you need to raise money, they seek power and control
