J.K. Lasser's Guide to Self-Employment, 2nd Edition

CHAPTER 14 Strategies as Your Business Grows

1. Moving to Larger Quarters
2. Hiring Employees
3. Changing Legal Status
4. Selling the Business
5. Final Thoughts

Some sole proprietors find a niche and maintain that position throughout their careers. That's fine. Just recognize that there are only so many hours in a day that you can work for which you can bill, so your earning potential is limited.

Other sole proprietors, however, build on what they started and grow their businesses. They may need more space to operate or employees to help them. They may want to change their legal status for personal liability protection or to enable them to more easily access capital. They may want to sell what they've built up. It's a new phase for the business and for you.

Moving to Larger Quarters

You may be operating from home or small commercial space. Now you need more room to accommodate your growing business. Moving may be the right business decision for you.

Signing a New Lease

If you've never had a commercial lease, be sure you understand what everything means before you sign your name. Unlike residential leases, which are usually boilerplate, just about every term in a commercial lease is negotiated between the landlord (lessor) and the tenant (lessee).

Again, be sure to work with an attorney who is well-versed in commercial leases. Have your attorney explain all of the terms and obligations you have under the lease.

Leases are explained in more detail in Chapter 6.

Breaking an Old Lease ...