Property and Fixed Assets (1 of 3): Space - John M. Leask II CPA/ABV, CVAJohn M. Leask II CPA/ABV, CVA

Property and Fixed Assets (1 of 3): Space - John M. Leask II CPA/ABV, CVA

Property and Fixed Assets

Part 1 of a 3 part series

Warning Signs:

    • Almost fully depreciated assets.
    • Depreciation as a percent of sales significantly out of line with industry averages.
    • Net sales to net fixed assets significantly out of line with industry averages.

Steps to Improve: SPACE

  • Buy or rent “the bricks”.
  • Don’t build the Taj Mahal.
  • Space and location: Be sure both are right for your business.
  • How much space do you really need? Do your customers visit?
  • Sublet or share your unused space.
  • Rent: Renegotiate your lease to reduce your occupancy costs..
  • Rent: Renegotiate lease terms to mesh with business costs.
  • Rent: Shift to short term leases to limit exposure.
  • Use mail drops; business centers.

Back to The Business Doctor

>>Property and Fixed Assets (1 of 3): Space
>>Property and Fixed Assets (2 of 3): Equipment - Part 1
>>Property and Fixed Assets (3 of 3): Equipment - Part 2