How to Start a Business

leases vary regarding maintenance and repair – some stipulate that the tenant is responsible for all property upkeep and repairs while others specify that the tenant is responsible for systems like air conditioning, plumbing, etc.

an easy and affordable way to equip your new and expanding business. From computers to cars to gently used medical equipment, just about anything you can think of that your business might need is sold by the government at or below cost, or fair market value. A Small Business Guide to Government Auctions and Sales When a federal or state agency has extra equipment, seized goods, or forecloses on a piece of property, the goods are either transferred to another government agency or sold to the public. These items are sold “as is” by auction or negotiated sale, either online, in-person or both. Online auctions work much the same way as other auction sites, such as eBay. You visit an agency’s auction site, register your name and place your bid. Unlike most state governments, there is no single online auction web site in the federal government. Federal agencies responsible for disposing of excess government property, such as the General Services Administration (GSA) or Department of Defense (DOD), have their own auction sites. Federal law enforcement agencies also run auction sites for seized property. LEASING BUSINESS EQUIPMENT Looking to equip your new business? Whether you need computers, desks, machinery, or a vehicle, you want to make cost effective purchasing decisions. Why not consider leasing equipment instead of buying it? Here is some information to help you decide if leasing is right for you. Aside from a reduced cash outlay, there are many benefits to leasing equipment: • Leasing can save you the time and hassle involved in finding someone who will extend you credit for purchasing equipment. • You can keep pace with emerging technology. • Short-term leases give you the opportunity to evaluate whether the equipment fits your needs. • Maintenance may be included in the lease, saving you additional costs. 42 Benefits of Leasing Business Equipment

Read the Lease

Be sure to read over your lease in detail and hire an attorney who specializes in commercial real estate to walk you through the clauses and fine print.

Protect Your Business

To protect your investment and long-term business interests, it is worth investigating and negotiating some potential add-on clauses to your lease. These might include: • Sublease – This builds in some flexibility, allowing you to sublet your space to another business. • Exclusivity clause – Prevents the landlord from leasing other spaces on the property to a direct competitor of yours. • Co-tenancy – If the property’s anchor tenant closes business, a co-tenancy agreement can protect you from a potential loss of customers, allowing you to break the lease if the landlord does not replace the anchor tenant in a specified time period. Should you default on your lease payments, there are steps you can take during the lease negotiation process to protect yourself. Find out what the lease agreement states. Will you be locked out immediately? Will the landlord initiate eviction proceedings? Can you negotiate more time? Could you pay only the current month’s rent instead of the remaining amount owed on the lease? What if You Default?

BUYING GOVERNMENT SURPLUS

You have your business, but now you need supplies. Purchasing surplus goods from the government is