PNA Legal

Let's face it. If you are signing a lease, it means you are getting into business. The only reason you go into business is for profit. Profit is so important that it is worth repeating. The only reason you go into business is for profit.

Profit is what is left over after you pay for the cost of goods (purchases), labour, rent and overheads. Approximately 6% occupancy costs (rent) is a good starting point. Unfortunately such a good starting point is rare. If you get the numbers right from the start, not only will you protect your profit, you will add thousands onto the market value of your business. Speak to your accountant, all they do is count and advise on profit. Then talk to us.

This all depends on how you want to structure the business. If you are a sole trader, then the lease would be in your sole name, if you are in partnership, then the lease would be in the names of the partners. You get the idea. If you trade through a pty ltd company then you would have to sign personal guarantees by which you become personally responsible for the obligations under the lease. The real message here is get accounting and taxation advice before you sign.

Plenty. Prepare a business plan. Are your finances ready? Get development approval from the local council. Does the shop have or need a grease trap? Do you need council or owners corporation consent for outdoor seating? Will the kitchen need a mechanical exhaust? Does strata need to consent? Do you need a liquor license? Have you got the go ahead from the Franchisor? The list goes on. You need to tick all of these boxes (and more) before you commit. We can help.