The hospitality industry is one of the sectors that generates the greatest demand and supply. It is a thriving business, full of offers and a lot of demand.
However, negotiations for the transfer of premises are often delayed by not finding the buyer willing to accept the conditions of the transfer.
To formalize the transfer of a leased premises or business , it is necessary the consent of the owner and the signing of a contract between the person who transfers the business and the person who receives it. After this, the owner of the premises will sign another contract with the new tenant.
It is important to clarify the clauses and conditions established in the contract with the owner of the premises to avoid inconveniences in the future.
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What is known as transfer of premises?
Premises transfers are agreements in which business owners give up their premises to other people in exchange for payments.
Various tangible and intangible assets can be included in this negotiation, for example:
- The sale or lease of the premises.
- The products and supplies of the business.
- Furniture, machinery and tools that are part of the business equipment.
- The customer portfolio.
- The brand name.
- The liabilities of the business such as: debts, economic losses, problems with the premises, etc.
Recommendations when making a business transfer
When you decide to get involved in a venture where the tedious start-up is not included, it is time to evaluate a business transfer as an option.
However, although this process may seem simple, it is not. This operation includes many clauses and conditions that must be carefully evaluated to avoid complications in the future.
Therefore, we share some recommendations that will help you make the right decision to achieve a successful negotiation.
- Analyze your interests in relation to the business opportunity.
- Find out about the business, check the licenses and if there have been any observations in the official inspections.
- Search for information about the business on the Internet.
- Make the most of your experience.
- Evaluate your skills, this way you will be able to make good decisions about possible changes in the business model.
- Verify the conditions of the business, with the help of a technician to determine the real state of the facilities.
- Define what your initial investment will be to start the negotiation.
- Investigate the real reason for the transfer of the business, since sometimes the reason for the negotiation is related to problems of various kinds.
- Get professional advice before setting the purchase price, this way you will be able to establish a reasonable amount at the time of closing the transfer.
Advantages and disadvantages of business transfer
When we are part of a negotiation or transfer of premises it is possible that the operation is carried out without any setback, but it is also true that during this process there may be some difficulty that delays the project.
Among the advantages of the process in the business transfer we can mention:
- Saving paperwork, time and money to start the business activities.
- The store has a clientele and staff that manages the environment and customer service.
- It has a network of suppliers.
- There is an established business model that can be modified to start working.
However, it is important to assess the difficulties that would cause inconvenience when accessing a business by transfer:
- The owner does not know how to manage the business.
- Lack of experience in the sector where the business is developed.
- The possibility of facing rejection of change by customers and staff.
- Lack of planning and creation of business strategies to drive the business forward.
We hope this content has helped you clarify the picture.
If you would like to leave any information that may help people who are looking for data on this matter, leave it in the comments section.