BLOG.SILENTPARTNERNEGOTIATORS.COM

Announcing Several New Levels of Service

2012-10-05T23:29:17Z

Small business owners are searching hard for ways to cut expenses and successful lease renegotiations are a great way to accomplish that.

The following service level packages have been well-received by clients for both their variety as well as low-cost. The following is from an upcoming press release:

In this lingering down economy, Silent Partner Negotiators continues working with small business clients to help renegotiate existing and renewing commercial leases.

“We offer a wide range of services depending on our clients’ needs,” says Wade Horigan, Principal of Silent Partner Negotiators. “Some owners want us to handle the entire process which we can set up on a modified contingency or hourly rate-basis.”

But others are more hands on, looking for advice and guidance on how to go about formulating a compelling lease renewal or renegotiation proposal. For those, Silent Partner Negotiators offers several other levels of assistance.

You can order their Lease Renegotiation and Renewal Manual ($19.00) or Professional Lease Renegotiation and Renewal Guide ($89.00).

The latter includes the manual which details the process Silent Partner Negotiators use during a renegotiation or renewal, along with actual successful client letter samples that have saved their clients tens of thousands in lease costs. The Professional Guide package also includes an opening letter review by Wade Horigan and comments/suggestions via email.

Finally, a mid-level option for $475.00 done directly by Silent Partner Negotiators includes:

• Complete lease and relevant document review.

• Consultations/Emails to fully understand your unique situation and goals.

• Lease Market Research for your area.

• Custom-written drafts and initial proposal letter.

• Explanation of what to expect and ways to handle landlord response.

All three packages offer a money-back guarantee that can be found on their website – http://www.SilentPartnerNegotiators.com.

"Don't just ask your landlord IF they will reduce your lease payment," states Horigan. "Be proactive and create a compelling, fact-based proposal letter and greatly increase your opportunity to save."

Silent Partner Negotiators has been helping clients reduce their business lease costs through principled lease negotiation and renegotiation. They offer full-service, modified contingency-based existing and renewing lease renegotiation for qualified clients. They have also put their techniques into a Professional Guide to Lease Renegotiation that includes 25 pages of lease renegotiation letter samples from actual, successful renegotiations.

For more information, please contact Wade Horigan directly at (805) 320-4801.

Small Business Mediation Can Replace Small Claims Court

2012-07-02T21:52:53Z

Ventura, CA June 29, 2012

Silent Partner Negotiators now offers Small Business Mediation Services.

We offer small business mediation to help people resolve their disputes before going to court.

Many Small Claims Courts around the country have been working over the past several years with pro-bono mediators who offer to help settle cases before they come before a judge. These programs have been extremely successful.

Most small claims cases are business related: Tenant/Landlord, Contractor/Client, Retail/Customer. One party is suing another over an amount of money they feel is owed. Mediated resolutions often boil down to an amount and a payment schedule that the debtor can live with and live up to.

Mediators are able to work with the litigants to facilitate an understanding of the issues. By having the chance to express their viewpoints in a voluntary setting, the parties are often able to break through the wall that caused the court action and come to a resolution on their own.

Studies show that a mediated settlement is more likely to be collected than a judgment. And normally a judgment handed down by the court means that there is a winner and a loser. In mediation, the parties might not get everything they want, but they do have a say in the outcome which normally involves a compromise arrived at with the aid of the mediator.

There are many benefits to business mediation; primarily that there is no judgment rendered and therefore no chance of it showing up on credit reports.

"We offer small business mediation to help people resolve their disputes before going to court," says Wade Horigan, Principal at Silent Partner Negotiators. The next time you have an business issue you are considering filing in small claims court, call us first for a free consultation.

Be Proactive about Lease Renegotiation

2012-05-14T23:05:55Z

pro·ac·tive [proh-ak-tiv] - adjective

Business definition: Preventative action and result-oriented behavior. Not waiting for things to happen and then trying to adjust reactively to them. Proactive behavior identifies and utilizes opportunities and/or takes anticipatory action against potential issues and problems.

There are two sides to proactivity.

One is opportunistic proactivity – seeing an opportunity or advancement ahead of the competition and going after it to your advantage.

The other is preventative proactivity – seeing an impending or growing problem and taking action to avert or at least mitigate its negative effects to you and your business.

At Silent Partner Negotiators, we encourage both. Negotiation of your fixed costs, such as negotiating your lease payment downward, goes directly to your bottom line.

Normally, our clients come to us either in the preventative proactive phase or, less optimally, the reactive phase.

If your business is struggling (and many are; there is no shame in it) then the sooner you admit it to yourself and begin to take proactive measures, the better. Don’t wait until it's too late. Because at some point – and it happens seemingly just like a snap of your fingers – businesses can go from being in difficulty to being un-salvageable.

Are your lease payments getting harder to afford each month? Are you using savings or burning inventory (i.e. selling your goods at low or no profit just to generate cash) to cover your costs?

Or, are you starting to get behind and build up a balance owing?

Whatever the state of your affairs, THE TIME TO START BEING PROACTIVE IS NOW!

I encourage you to contact me today. It will cost nothing but a small amount of your time. The benefit may be the difference between getting through or giving in.

With our contingency fee available in most lease negotiation and renegotiation cases, it will cost you nothing unless and until you actually save. Payments are set up monthly so that you owe only a small portion of what you are saving each month on your renegotiated lease.

Be proactive today; don’t wait until it’s too late.

CLICK HERE to schedule a time that's convenient and we will call you.

Wade Horigan

info@silentpartnernegotiators.com

www.silentpartnernegotiators.com

Copyright 2012, Horigan Concepts. All rights reserved.

Commercial Lease Review - Business Perspective

2012-05-14T22:18:29Z

BEFORE YOU SIGN -

Have you ever signed documentation to buy or lease a car without reading through it all?

Most people have. The gut instinct is that everything there is “boiler-plate” standard stuff that everyone just agrees to as the norm.

You just want the car because you’ve already been at the dealership haggling for 4 hours or more trying to cut through the salesmanship to get to a final deal. You know you’ll be on the hook for $300.00 - $750.00 per month for 36 – 60 months and that’s what you’re focused on.

Unfortunately, we find that our small business clients’ often handled leases they have signed in the same way. Except that instead of $300.00 - $750.00 per month, it’s $3,000.00 - $7,500.00 per month or more.

As a part of every lease renegotiation process, we go through our client’s lease. Not from a legal or broker perspective, but rather from a business perspective. How will each item affect your business?

No longer do the words “I had no idea that was in there” surprise us.

For example, we found a sentence in the option clause (optional additional year(s) of lease after the initial term) of a recently reviewed lease that states: “…in no event shall the rent be adjusted to a rate less than the monthly base rent due on the last month of the previous lease term.”

So, you’ve leased for 5 years, payments based on a much higher market when you first signed, and now on the first option, you have agreed – 5 years ago – that the new rent will be no less than the last month of your last term?

In reality, that clause wouldn’t stand a good negotiation unless the market was really hot, but still – if you KNEW that it was there when you first reviewed the lease, a flag should have gone up to at least try to get it removed.

Although there are norms and standard procedures consistent with most leases, many prospective lessees do not realize that portions and clauses are negotiable.

And even though all leases look like the same 23 pages or so of small type, they’re often quite different in very important ways. Those negotiable items can have definite consequences to your business’ bottom line.

What this leads us to is the introduction of a new service from Silent Partner Negotiators: Commercial Lease Review – Business Perspective.

Before you sign, whether or not you decide to use a lawyer to parse the legalese, consider having us read through it for you from a business negotiation viewpoint.

Chances are we can highlight items that you will want to try to negotiate out, or at least more to your favor. And over the life of your lease, that front-end negotiation can save you and your business a lot of money.

CLICK HERE to schedule a time that's convenient and we will call you.

Wade Horigan

info@silentpartnernegotiators.com

www.silentpartnernegotiators.com

Copyright 2012, Horigan Concepts. All rights reserved.

Blend and Extend Lease Renegotiation

2012-04-24T17:33:12Z

How can your successful business take advantage of current lower lease rates in many parts of the country if you’re presently locked into a lease?

In its simplest form, Blend and Extend in commercial real estate is the concept of renegotiating with your landlord to trade lower rates now for a longer term. It can also be used to renegotiate other terms such as improvements, NNN and CAM fees or lease clauses that you wished you had been more diligent about when you first signed.

If you have a good tenant track record, have been in your space for some time and would be willing to remain their longer than your current lease term, then Blend and Extend Lease Renegotiation may be just the answer.

Many landlords, particularly with strong tenants having 24 months or less on their lease would be willing to have this conversation and enter into a renegotiation now. You could save tens of thousands over the remainder of your current lease.

As the saying goes: “A bird in the hand is worth two in the bush;” particularly in uncertain economic times.

Please do not hesitate to call or email if you have any questions.

Wade Horigan (805) 320-4801 or whorigan@sbcglobal.net

Professional Guide to Lease Renegotiation

2012-04-05T03:37:03Z

Now available -

Silent Partner Negotiator's Professional Guide to Lease Renegotiation.

Don't just ask your landlord "if" they can reduce your lease payment. Create a compelling, fact-based proposal letter to greatly increase both the amount of the reduction AND your chances of success.

Remember - your first attempt is your best chance. Be prepared with the right combination of facts and persuasion.

The Professional Guide to Lease Renegotiation takes you through the steps we use at Silent Partner Negotiators to prepare and write the opening letter of a mid-term or renewal lease renegotiation including:

How to read through and mark up a copy of your current lease.
Determining your lease type.
Examples of what to look for and why.
Ways to do local market research.
What types of data look for in your own business to support your case.
Determining your key points and strongest strategy based on your unique circumstances.
How to get started writing and important areas to be certain to cover.
What to expect in terms of possible responses.

What if you were able to secure even a 10% reduction on your monthly payment?
We have saved our clients between 16% and 47%.
Imagine saving thousands of dollars over the life of your lease.

The renegotiation process can take some time so don't delay; begin today.

"I highly recommend this – it worked great for me." D.M., Williamstown, MA

Get your Professional Guide to Lease Renegotiation right now.

Copyright 2012, Horigan Concepts. All rights reserved.

Get "GROSS" - Lease Negotiation Tips

2012-03-15T19:37:44Z

Having a hard time navigating the lease terminology?

Triple Net, CAM, Modified Gross, Industrial Gross, Full-Service, Single or Double Net, Percentage Lease.

What do they all mean? Unfortunately, they can mean different things to different landlords. Though somewhat standardized, it doesn’t matter what a lease is called, but rather the terms it contains.

Sorry, but you should actually READ it. Even then, understanding it can be difficult. Don’t think some of that isn’t on purpose.

When you are looking for a space, try to find two or three that would suit your needs. This is so you can play them off each other.

No doubt, however, that one of them will be your favorite.

But part of being a successful negotiator is not tipping your hand. In other words, don’t let a landlord or their representative know that their space is number one on your list.

Ask for a copy of the lease for review. Ask what type of lease it is – what they are calling it.

Don’t succumb to pressure tactics meant to rush you into a decision. For example, if you are told that someone else is seriously considering leasing the space, simply say: “That’s good – hope you get what you’re asking” and leave it at that. Chances are you will elicit at least a pause or stutter.

Take the lease home – read it. Use the internet or a professional to get answers to questions you have.

Most importantly, truly and conservatively examine how much you can or want to afford. That is your stopping point; be ready to walk away if it goes above that. Don’t let someone (landlord, real estate broker, management company) convince you that your business can afford more than you determine it can. How would they know?

Now – Time to get “GROSS”

Go back and simply say (starting 10% – 20% less than your top number): “It doesn’t matter to me how you back into this as far as your lease type and paperwork goes, but I’m willing to offer $X,XXX.00 per month gross for X months.” Make sure they understand that if you’re offering $2,500.00 for example per month – that’s it – the total monthly amount – not just the base rent.

What you are doing is capping whatever type lease they have. You do not want to be surprised by extra costs that can and will go up in many net lease types. The lessor will probably tell you right then that they can’t do that. Be prepared to say “OK” and walk away. Chances are they won't let you get too far. Or you can say: “What CAN you do to cap the costs?”

From there it’s a negotiation. You have set the bar on your side. If you know the market and have secondary options, you are far more apt to get the results you’re looking for.

If they are unwilling to negotiate something you can live with, then isn’t that best to know? Don’t bury yourself and your business before you even open – be smart and be patient.

NOTE: There are occasional deals that are good and do need to be acted on quickly, but they are not the norm. Know the location – know the market. Be prepared.

As always, if you have any questions, please visit the website or give me a call at (805) 320-4801

Wade Horigan

What Are Some of the Risks in a Renegotiation?

2012-03-09T18:13:51Z

If you could renegotiate your lease, why wouldn’t you try?

This point comes up frequently when discussing renegotiation of an existing lease with prospective clients.

The inclination is for people to be leery or skeptical. How could this work? The concept seems too simple.

The reason for that, I believe, is that even though the idea of lease renegotiation is not new, it has typically been something ancillary to another issue. In other words, it comes up as an idea AFTER the pot has already boiled over and you’re trying to clean up the mess.

I have not found a business model out there based primarily on small business lease renegotiation as a fundamental way to cut business expenses as Silent Partner Negotiators does. There are companies that offer it as a service connected with a primary business such as law firms and real estate brokerages.

What differentiates Silent Partner Negotiators is that we do not come at negotiation from a legal or transactional basis – we come at negotiation from a NEGOTIATING basis - what makes sense for YOUR business.

The fact is that renegotiation doesn’t always work. But most often it does, often with significant results.

So therefore the initial question: “If you could, why wouldn’t you try?”

Because the other main issue for my clients is wondering about the risks.

Let’s examine what they might be.

Little to no risk – If you are in the middle of a lease term, and you attempt to renegotiate, what is the worst thing your landlord could do during the process? Say NO. If that happens, then what you’re left with is exactly what you already had.

This presumes that you’ve come at the issue in a well-conceived and professional manner. Putting forth a case for lowering your payments based on sound economic reasoning and not just an open-ended “can you take less each month”?

Minimal risk – If you are month-to-month, or coming up on the end of a term, then opening up negotiations versus keeping your head down with the status quo does increase the risk. But so much of that is market-dependent. And at the present time, a good paying tenant-in-hand with a track record of steady occupancy has great value to landlords. Think simply from the landlord’s perspective: “Tenancy = GOOD; Vacancy = BAD.

This is where due diligence comes in. Don’t go into this without doing the research. Find out what is in play for the building owner – what else he may own and what vacancies he is currently facing already.

Higher risk – If you are a tenant with a track record that is not so stellar (i.e. late pays, a reputation for picking at the small stuff, etc.) then trying to renegotiate, particularly with a month-to-month or lease renewal, can be a problem.

If this is you – particularly late pay or balance-owing, then you may be in a position where without renegotiation, you won’t make it anyhow. So given that, the higher risk is mollified. Not getting a rent reduction may mean you will have to move out anyhow. If that’s the case, the sooner you stop losing money each month, the better.

This is why I urge my clients to think about and to talk about renegotiating sooner while things are still good rather than later once the wheels have started to come off.

Make it a proactive business issue because again, a good tenant has a huge advantage when it comes to reducing their lease expense in a down economy.

Renegotiating a lease (or at least trying) sounds simple, but in order to increase your chances of actual significant success, it’s not. It takes a lot of preparation, research, creative thinking and writing, and time. Typically it can be a month or more from start to finish.

Don’t delay - I would be happy to discuss it with you.

CLICK HERE to schedule a time that's convenient and we will call you.

Wade Horigan

info@silentpartnernegotiators.com

www.silentpartnernegotiators.com

Lease Renewal or Option Exercising

2012-02-24T00:31:35Z

Is your commercial (retail, industrial or office) lease coming up for renewal or expiring in 18 months or less? If yes, it is time to act.

Use your good tenancy record as leverage to drive down one of your company’s largest fixed expenses NOW as a part of the negotiation for the upcoming renewal.

[NOTE: If you have “options” in your lease contract that spell out what the lease payment is going to be, this is still renegotiable, particularly in a down-market. Remember, one of your “options” is to NOT continue the lease]

Many current leases signed three or more years ago are presently over-market. In other words, if the space were vacant, your landlord would be signing for less with someone new.

Does it make sense that you, a good long-term tenant, be paying more than a new, unproven tenant would? We don’t think so, and we specialize in helping put forward your unique case to your landlord.

Keep in mind for instance, a new tenant has risks and costs that an existing tenant doesn’t:

· First and foremost, you have a record of paying the lease. Don’t underestimate the value of that – particularly in the last three-plus years of a down-trending economy.
· Second, new tenants often require costly changes or improvements to a space while renewing tenant costs are typically lower or non-existent.
· Third, any change to a new tenant has the inherent risk of vacancy. One, two or more months of no income while searching for a new tenant can be very costly to the landlord.

Part of having an effective negotiation plan is knowing what is available out there and how much it is. For example, LoopNet® is a commercial real estate information website with property data and current availability for all commercial property types nationwide. Use LoopNet to get a complete view of the market. Search current space available and asking rates in your area. Remember though; asking or listed price does not mean it is what the market will currently bear. Normally deals are actually signed at lower rates and often with concessions on free rent, improvements, etc. How much inventory is there? Search Property Records to see tenant, owner, market stats and historical lease listings in the area. Leverage Market Trends reports for insight into changing asking rents over time. Go to www.loopnet.com (Click on the “For Lease”, “Property Records” and “Market Trends” tabs).

Another part is examining your own willingness to move. Don’t overpay just because it’s easier unless money is not an issue for your business. But don’t overlook the costs of a move either.

Fact is that not all lease renewals are going to be renegotiable in advance. Even in down times, there are places where the landlord has the upper hand based on prime location and demand. And there are situations where the landlord is just unpredictable and does not do what anyone else would consider to be smart.

But don’t let that stop you from trying. You might well be very pleasantly surprised.

We are your Silent Partner Negotiators. Let us help you discover and utilize your strengths as a tenant to secure immediate and future savings.

Want to know more? Give us a call today at (805) 320-4801 or send us an email.

We’ll be happy to discuss your situation candidly and let you know what we think – no obligation.

In The News

2012-02-13T23:38:45Z

Who's new in business: Silent Partner Negotiators

Published Saturday, October 22, 2011 (slight edit of original)

Silent Partner Negotiators

Owner, Wade Horigan

Name of owner: Wade Horigan

Product or service: Midterm and renewal lease renegotiation along with several other small business consulting services including mediation.

Address: 5471 Hollings St., Suite A1, Ventura.

Date established: November 2010.

Hours open: As needed to suit clients.

Telephone: (805) 320-4801

Email: whorigan@sbcglobal.net.

Website: http://www.SilentPartnerNegotiators.com.

What prompted you to start your own business?

I have been both self-employed and an employee more than 30-plus years. Negotiation has been what I have most enjoyed doing in all my positions. Last year I saw an opportunity to build a business around it.

What is your educational and career background?

Temple University, political science; VCDS (Ventura Center for Dispute Settlement) certified mediator; real estate agent; and 30 years working in various small businesses. Most recently, I've worked four years as a marketing project manager and 15 years prior in the retail antique business in downtown Ventura both as general manager and owner of multiple locations.

How much research did you do before starting your business?

Enough to see that the business model I have been testing does not have a lot of direct competition in the market currently. There are companies who offer lease renegotiation, but normally ancillary to their main business such as attorneys and real estate brokerages. Their target market is big, corporate locations.

Silent Partner Negotiators' niche is sole-proprietor small business including franchisees.

What were the most helpful sources, including websites?

There are a lot of useful books available on negotiation theory and practice. Also subscribing to articles on the Internet; mainly Harvard's PON (Program on Negotiation) and using LinkedIn user groups to connect with other professionals.

Also, the local SCORE program continues to be a great resource of expertise.

When were you the most discouraged?

When a client who had already gotten too far behind in lease payments called. We made an effort, but the landlord had a replacement tenant in mind for the space so there was no room for renewal renegotiation. They had to close down after six years of building their business because there was not enough capital to relocate. This is why I urge businesses to look into renegotiation while they are still doing OK because their position with the property owner is much stronger.

What company or individual do you admire?

My wife, who teaches at Ventura College and CSU Channel Islands, for her dedication to her subject and students.

What will make your business stand out from competitors?

Personal service coupled with a long background in various businesses allows me to come up with creative and persuasive ways to help my clients reduce their expenses through negotiation. Also, most clients are eligible for a contingency plan based on a small percentage of the negotiated savings set up on a monthly basis. They pay only when they are already saving a lot more than the fee.

Negotiations are individually tailored through research and meetings with the client to determine the best path to take for success. I help clients take the emotion out of it.

Silent Partner Negotiators' tag line is "Not Everybody Likes to Negotiate — WE DO".

Who is your target client base?

My main target clients currently are small business lessees. With the economy in sustained difficulty, many do not realize that one of their major fixed expenses — their lease — can often be modified in their favor. This is especially true if done correctly and while their businesses are still in reasonable financial shape. A lessee does not need to wait for a lease renewal to try a renegotiation. My clients have had great success in significantly reducing current, existing leases.

Though it may seem counterintuitive, landlords and property managers also benefit. Without negotiation to help get control of their fixed expenses, businesses that could weather this economic storm with a decrease in rent might otherwise end up going out of business without it.

BEFORE YOU SIGN A NEW LEASE OR RENEWAL

2012-01-27T19:04:22Z

Is someone you know getting ready to sign a commercial lease? Please forward this information to them.

Leases are drawn up by and for the benefit of the lessor.
Lease clauses can be negotiable, particularly by a strong prospect lessee in this down market.
Pre-signing lease negotiation can save money not only in the beginning, but more importantly as the years go by.
Annual lease percentage increases that seem small are often compounding and can add up to hundreds of dollars additional EACH MONTH later in the lease.

This is an update of a post from last year that introduced Silent Partner Negotiators' Commercial Lease Review ~ Business Perspective service.

In that time, we have examined many leases while helping clients with mid-term and renewal lease negotiations. Each one has items that were agreed to when signing the original lease that are now costing the lessee thousands of dollars that they probably didn't put much thought into at the time. In many instances, it would seem that they never actually read it before signing - or at least didn't consider the ramifications 3 or 5 years down the road.

That is understandable. When you are opening a new business, or relocating an existing one, there are so many issues to deal with. Taking the time to go through a 25 page document on legal size paper with small print and a lot of clauses that are hard to understand is daunting.

But did you know that when a lease is offered, you have more options that either accepting or rejecting it?

Perhaps you've negotiated the per square foot rate down and feel good about it. It's a great start, but that's just page one.

This is not to say that every clause can be negotiated or eliminated - but many can if you just take the time to go through the lease BEFORE YOU SIGN with the idea of "does this make sense to my long-term goals?"

Have you ever signed documentation to lease a car without reading through it all?

Many people have. The assumption is that everything there is “boiler-plate” standard stuff that everyone just agrees to as the norm. Don't expect the salesman to tell you any different.

You just want the car because you’ve already been going around for hours trying to cut through the salesmanship to get to a final deal. You know you’ll be on the hook for $300.00 - $750.00 per month for 36 – 60 months and that’s what you’re focused on. But when you go to turn it in at the end, with an extra 10,000 miles on it, you are hit with a large bill.

You may have known that clause was in there when you signed. But did you know that you might have been able to negotiate it down from $0.15/extra mile to $0.10 BEFORE YOU SIGNED? $500.00 saved for 10 more minutes of haggling three years before. Pretty good pay rate.

No longer do the words “I had no idea that was in there” surprise us.

Although there are norms and standard procedures consistent with most leases, many prospective lessees do not realize that portions and clauses are negotiable. And that many of them can and will have financial consequences down the line - 99.9% of the time meaning the lessee will be paying more.

And even though all leases look like the same 25 pages or so of small type, they’re often quite different in very important ways. Those negotiable items can have definite consequences to your business’ bottom line.

Commercial Lease Review – Business Perspective. Catch those potentially costly items before you sign. If you can negotiate some of them out, the benefits could be huge.

Before you sign, whether or not you decide to use a lawyer to parse the legalese, consider having us read through it for you from a business negotiation viewpoint.

We can highlight items that you will want to try to negotiate out, or at least more to your favor. We can help you negotiate them. Over the life of your lease, that front-end negotiation will pay great dividends.

CLICK HERE to schedule a time that's convenient and we will call you.

Wade Horigan

info@silentpartnernegotiators.com