It’s that time of year to refocus and get back to the basics as we approach the end of the financial year (EOFY).
This year seems a lot harder to keep our eye on the tasks at hand. What, with the Banking Royal Commission, Senate Enquiry into Franchising, flat year on year retail sales and the constant commentary on the growth of online sales, we can’t be blamed for being distracted.
Unlike other businesses who focus on the EOFY sprint to the finish line. Retail is readying for the beginning of the new financial year (BOFY).
New budgets are armed and ready to implement strategic marketing plans, anticipated forward orders awaiting as the slow turn of excitement builds in anticipation of Santa’s arrival.
All this noise and buzz about finalising accounting periods, new merchandise, open to buy budgets, stock turn cycles and cash flow projections.
There is one supplier contract that doesn’t seem to raise a mention, the Landlord (your lease).
BOFY and the new year are the times when you should drag your lease out of the bottom draw and review this most important supplier contract.
It’s easy to become complacent and think you are across your lease when the rent review increase appears on the new invoice and in February when sales slow after the seasonal highs of Dec/Jan.
Part of your BOFY resolutions should be to identity the lease events (similar to planning your merchandising events) and create a plan.
Instead of complaining about the fixed rent increase after it has hit your accounts payable, you should be sitting down with the Landlord three to four months prior, proposing how the waiving of the rent review will assist in maintaining occupancy cost levels.
And if your lease is due to expire or has an option within the next two years, the planning becomes far more important.
Don’t forget to review your Landlord as a supplier in to the business, develop a plan on how you will trade with them, look forward to the BOFY and have a happy lease year.
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