Do you need a break?

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When you’re running an up and coming business, costs are always on your mind. The less costs you have, the more profit you can make. So what do you do? You look for savings, HOWEVER, one of the biggest overheads of any business, often gets overlooked; RENT. In the UK most businesses rent their premises from a landlord as tenants under a lease. When the market was booming (pre-credit crunch) landlords had the upper hand setting high rents and long leases however in today’s challenging economic climate, landlords and tenants have found that long leases and high rents are no longer sustainable; there needs to be a compromise. This is why most commercial leases contain a BREAK clause which enables either the landlord or the tenant or BOTH to end the lease early and seek better terms elsewhere.

How does it work?

Say for example, you own a restaurant. You have a three year lease. In year one, business is booming however in year two, it’s not doing so well because the government has got rid of a big housing estate next door causing footfall to significantly decrease. You still have to pay your rent which in year one, was a piece of cake but now in year two, is a massive burden. You review your lease agreement but ALAS you’re locked in until the end of year 3. You go to the bank to apply for a loan. Whilst doing this you spot a great  empty space in a shopping centre round the corner. You know that your business would thrive there. You review your lease again, alas,  NOTHING HAS CHANGED, you’re STILL locked in until the end of year 3.

In the above scenario, not having a break clause in your lease prohibits you from getting out of a high rent deal in a poor area for your business. Your overheads increase and your profits decrease. Let’s look at this scenario WITH a break clause.

You have a three year lease. As soon as business starts to fail in year two you begin to review your options. You look closely at your lease agreement and to your joy you see that you have a break clause that kicks in after 18 months. You serve a notice to your landlord in accordance with the lease agreement, notifying him that you want to end your lease early. Your landlord accepts and at 18 months you move out of the premises and into the space that you spotted in the shopping centre. HAPPY DAYS.

Can you see the benefits for your business in having a break clause? It gives you some leeway to reassess one of your business’ biggest expenditures. In some circumstances where the location and premises still suit your business needs but the rent is just too high notifying your landlord that you are thinking of sending a notice to activate your break clause could help to bring your landlord to the negotiation table and agree a more sustainable rent. Landlords are business people too and what they value more than anything else is reliable tenants. However, as with everything in law (and that’s why you need a lawyer) there is more to it than just having a break clause and sending a notice. Here are a few considerations to bear in mind:

  1. Form and Service of Notice – You must comply exactly with method and form of service of a notice to exercise a break clause. Also once the notice has been served, it cannot be withdrawn. If the notice complies, you WILL be moving out so consider it seriously.
  2. Timing – It is important when drafting and negotiating the break clause that it is clear when the break date is and what the required notice period is. A break clause may occur on one or more specified dates or be exercisable after a specific period of time has elapsed. Your lawyer can help you work out what works for your business. Landlords usually never want to lose a tenant so they will hold you to strict compliance with the break clause notice provisions; the best thing is to diarise them so that you always have them on your radar and  consider them well in advance.
  3. Break conditions – These conditions must be strictly adhered to. If these pre-conditions are not complied with, your break notice may not be accepted. The most common pre-condition is that all rents due under the lease must have been paid. You must make sure that your lawyer negotiates this condition carefully. A lot of money is wasted in court where it is not clear whether a tenant has to pay a full quarter’s rent or just the apportioned rent up to the date of the break clause. There have been instances where a tenant has had to pay the full rent with no refund. Another pre-condition is that the tenant must give up vacant possession meaning the premises should be EMPTY. Take all your stuff and go.

So do you need a break? Yes! Make sure that you are always giving your business options and do NOT forget to use them.

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How your business can help the world.

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Ok so what does business facilitate unintentionally, every day that can assist in breaking down barriers, prejudices, discrimination etc in one swift swoop…they bring PEOPLE, all kinds of crazy, different people together! Admittedly the intention isn’t initially to get everyone to hold hands and appreciate their various differences but it certainly ends up that way. You see in our common quest to make money, we end up fostering relationships with everyone and anyone because money doesn’t care about gender, sexual orientation, faith or race and that’s THAT. Anyone can make it.

Manufacturers and suppliers are all over the world, we drop an email to China, New York or London with a click. If there is a big event in our industry, we doll ourselves up and go and meet the cool kids with eager hand shakes and smiles of “give me your business“. In business, we don’t care whether your hand is black or white, if you are paying we will shake it and if you are talented we will hold it. Take McDonalds for example, there is a restaurant in pretty much every country with an airport. I’ll never forget the joy of seeing those golden arches after almost 3 months of eating spicy food (delicious as it was) for breakfast, lunch and dinner in beautiful India. I ate three McChicken sandwiches in one go at a familiar table, in a familiar decor and with a familiar service, nevertheless they also had masala fries and tandoori nuggets; amazing. McDonalds know that DIVERSITY and CULTURE is good for business.

Even the legal industry in the UK has recognised this. Traditionally pale, stale and male with degrees from Oxbridge only, the English legal profession is now more diverse than ever. In fact, globally, major law firms are continuously expanding all over the world, recruiting from oversees and right round the corner. Just go on to the website of Clifford Chance, Norton Rose Fulbright or Linklaters and have fun clicking on the sites of their many global offices. Even the ordinary pop star knows that culture and diversity pay, if you ever meet Beyonce, ask her where she HASN’T performed or Justin Bieber how many endorsements he has done in Japan! Ok you get it, but how does this HELP?

You see, in recognising that diversity and cultural awareness is good for business you help the world to stay connected and to integrate. Entrepreneurs, businesses and startups are key tools in building a community of human beings and not a community of “us and them” which politicians love to exploit. Imagine how much more we can achieve if we actively encouraged diversity and it wasn’t just a by product money making. If you own a restaurant and your beef suppliers are a farm in Scotland, a work trip to Scotland could really encourage relationships and mutual understanding. Or if you manufacture your clothes in China, going over and seeing with your own eyes, the place where your stock begins could encourage your Chinese team and also enlighten you to improving conditions for workers over there (this is an issue for another post on another blog). I’m sure this can all be put more elegantly but you get the gist right. I did a post on Corporate Responsibility which touched upon this BUT this post isn’t about your branding or your promotion its about YOU consciously making your company an educator to its employees and a friend to its customers; that’s how your business can help the world.

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HOW TO…write like a lawyer.

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Before you read any further I must explain that there are two schools of legal writer. The first is the school of “I want everyone and anyone to understand what I am writing so that there can be no doubt as to what has been agreed/disagreed and that YOU the CLIENT understand what you have paid for”. The second is the school of “I want to confuse you to make myself look smarter and you the CLIENT feel dumber so that you pay me whatever I ask because you have NO IDEA what’s going on”. If you have a lawyer in the second school of legal writer…get rid of them.

In the UK, the legal profession has snubbed long words and sentences. We’re even striving to move away from the ye olde latin phrases. These days if a judge reads a Defence or a letter that is not in plain English, the lawyer responsible for the drafting is in big trouble. The trick is to strike a balance between simple and clear language but without sacrificing gravitas (which lawyers love). There are a number of tricks that lawyers use to do this.

  1. Short, simple sentences. You can always deduct words! Challenge yourself by continuously asking, can I say this in a simpler way? Get rid of all superfluous introductions too. For example, “It is noted that” (get straight to it), “We should be grateful if you would” (just say please), “As aforementioned” (what??). Ok so SOMETIMES you can’t help but use an introduction such as “Further to your request” but at least this is helpful as it gives a context for why you are writing. If the words do not add value to what you are writing, get rid of them. Here’s an example. Compare “It is noted that you have persistently refused to pay” with “You have persistently failed to pay”. Which one is stronger and clearer?
  2. Define your terms. If you are referring to a really long word over and over again, just define it! For example, Apple Bubblegum Flavour Limited can be defined as “ABFL” like this “Our subsidiary company, Apple Bubblegum Flavour Limited (“ABFL”) is a profitable business”. From then on, instead of writing the full title of Apple Bubblegum Flavour Limited you can just write “ABFL”. Let’s look at another example. Tropical Adventures Limited can be defined like this, “Tropical Adventures Limited (“Tropical Adventures”) is a company specialising in coordinating adventurous holidays”. You can define a term in pretty much any way you want EXCEPT that you must actually USE the defined term in your writing and you MUST be CONSISTENT in your use of the defined term. For example, the defined term Tropical Adventures must be referred to as Tropical Adventures throughout the document and cannot suddenly be referred to as “TA”. In my opinion, defined terms can only be used by the very able of writers as whilst they are helpful, they can also be disruptive if you have too many or if you define them in a weird way. Define your terms in a way that helps the writing FLOW and not read like CODE.
  3. NEVER use emotive language. For your credibility’s sake avoid it! Stay away from language that you should only read in Harry Potter (surprised, annoyed, amazed etc). Also don’t make easy overstatements such as “clearly”, “obviously”, and “extremely”. Words like these lack detail and add nothing. For example compare “You received our bill on 7 October 2015” with “You clearly received our bill on 7 October 2015”. What did you notice? The use of the word “clearly” makes the writer appear weak and childish. I mean either something is clear or it is not! Don’t agree? Read this “We find your lack of response extremely rude”  and now this “We find your lack of response rude.” Which version sounds more sure of itself? The LATTER!
  4. Number your paragraphs. The best thing about numbered paragraphs is that you can cross reference! Say for example you are writing a really long complaint to a supplier. You have a strong introduction which sets out in four paragraphs the details of your grievance. You get to the end of your letter after setting out the solution you want. At this point you need to really bring it home to the reader just WHY you are justified in wanting that solution. Are you going to set out your grievance again? NO! You can simply state as follows “As set out in paragraph 3 above, your company has failed to carry out its obligations under the contract. As a result of this breach, we invite you to compensate our company in the sum of £500”. BOOM! You can even number your paragraphs in emails. Imagine this, you’ve drafted a detailed email to a potential investor/client setting out the terms upon which you are willing to negotiate. You should WANT to HELP the investor/client to consider each of your points properly. If you number the paragraphs, the potential investor/client can simply reply with “Dear Jack, I agree with paragraphs 1-7 and paragraph 9 but I’m afraid I cannot commit to paragraphs 8 and 10.” Again, BOOM! Just like that you have narrowed down the negotiation to the key issues (paragraphs 8 and 10) by one considerate email.
  5. Headings. Headings are great as they focus the reader’s attention on key issues that you want to get across and they also prepare the reader for the particular topic or sub topic. Let’s look again at my example at point 4 above (see what I did there…I cross referenced). You are writing a grievance letter to a supplier. How can you focus their attention? You can use headings as follows: Your breach, Loss caused, Solution and Next Steps. Or if you are writing a negotiation paper for a meeting you might use the following headings: Services, Duration of Services and Remuneration.
  6. Font and font size. Please do not write in Times New Roman (just too stuffy and is the automatic format of those who have not really thought about their business identity, unless of course your business identity is stuffy…) or Comic Sans (this font is for children). Pick a font like Arial, Tahoma or Calibri. These fonts are clear and encourage the reader to read what you have written. I personally prefer font size ten. Not too big and not too small. Also create a “house style” for your company. House style will be the formatting that your company uses in all of its correspondence and documentation. This helps with branding and it also protects your business as it grows. If you have a house style, all the employees are writing in the same format and structure.

So there you have it, my tips on how to write like a lawyer, but what I really should have called this post is how to write like a GOOD lawyer. Some lawyers love the serious long words and old school phrases but in my opinion such writing excludes the client, and it’s all about working collaboratively with the client!

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Be smart but don’t cheat…

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There is a reason why mega successful businesses spend thousands, sometimes millions of pounds/dollars on legal advice. I cannot tell you the number of times that I have almost cried because a client has brought me a problem that could have easily been avoided IF legal advice had been sought in the first place. In the long term, getting proper legal advice could save you so much MONEY and isn’t that what it’s all about – MONEY? You know that saying, what’s worth doing at all is worth doing well…it’s said for a reason! I don’t feel good billing you for my time when it’s for an issue that really shouldn’t have ever become an issue!

Think of it this way, when you have a tooth ache you go to a dentist -you don’t pull out the tooth yourself. When you feel sick you go to a doctor you don’t diagnose yourself. SO, if you need a contract drafted, guess what, you DON’T do it yourself. You go to your lawyer! You should be focusing all your energy into your product/service/idea not struggling to draft a 30 page contract or represent yourself at Court.

So what am I saying? I’m saying be smart BUT don’t cheat.

I am a lawyer and it took me 6 years of training to qualify to be one (a 3 year degree, a 1 year professional practice qualification and a 2 year training contract at an international law firm in the City). You cannot read this blog and become a lawyer BUT you CAN read this blog and become legally smart so that when you seek proper legal advice you are not doing so blindly. You are firing out questions and demanding the best service possible!

It’s quite simple, do things properly at the outset and you will reap the rewards later.

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5 ways to spot a bad lawyer!

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Lawyers are service providers. Fact. If you engage a lawyer to service your business, start up, whatever, you are doing the right thing. For it is said that “a man who is his own lawyer has a fool for his client”. In an ideal world the power should be with you, the client, however, unfortunately, not all lawyers are like me (passionate about progressing you and your dreams) they are more interested in er …fees, thus compounding that awful image that lawyers are greedy. So here are a few pointers on how to spot if your lawyer is not putting YOU first and may just be all about the fees.

1 You have to chase for an update

You should never have to chase for an update. A good lawyer will keep you regularly informed about the work he or she is doing for you. Obviously this is within reason but the updates should be regular in the context of the service you have paid for. E.g. “Hey Bob just a quick email to let you know that we have submitted your application…Hey Bob, we have received confirmation of receipt of your application… Hey Bob, your application has been accepted.”

2 You are presented with the unexpected – frequently

No one can foresee everything, that’s impossible BUT a good lawyer will have anticipated damn near all the risks! He or she will not only have communicated these risks to you, he or she will have factored them in to your agreed fee structure, i.e. “Hey Bob if this curve ball is thrown at us, this would likely happen and our fees would increase by X amount”. If you are frequently being told to pay a bit more because something has come up, this could be a sign that your lawyer is not thinking about the bigger picture for you.

3 You don’t understand what’s going on

This is a no brainer. A good lawyer wants you to understand how they are helping you. If you are confused your lawyer may be trying to squeeze a few extra pounds out of you by keeping you in the dark.

4 You only get bad news

Sometimes your legal situation might just be a bit rubbish but generally your lawyer should be coming up with solutions or alternatives. If you are paying for continuous bad news I would query why you were advised to embark on your pursuit in the first place. For example, advancing a bad claim or defending a good one.

5 You are not offered other services

A truly fantastic lawyer will be thinking what else he or she can offer to help you achieve more? Your lawyer should be suggesting other bespoke services for you such as seminars or even referring you to a specialist firm that can help you with a niche problem.

If you think you have a bad lawyer, raise your concerns with them and give them a chance to improve. They’re probably stressed out on lots of other work and your queries may help them to refocus on client quality!

Let me know what you think below and please share!