One of my all-time favorite board games is Balderdash. It is a classic bluffing game with a variety of categories containing unbelievable but true statements about people, words, movies, laws and of course my favorite… initials.
Learning all there is to know about business ownership is daunting, to say the least. It might be fun to compile a list of all the acronyms we come across and make up our own definitions.
Well the big one on our plate at the moment is LOI. While I’m tempted to bluff and come up with a phony answer to entertain you, I’ll take the serious route.
LOI or Letter of Intent according to dictionary.com it is a letter indicating that the writer has the serious intention of doing something, such as signing a contract in the circumstances specified. It does not constitute either a promise or a contract.
What does it mean for us? Every time we find a property of interest, we work with our commercial realtor to create a document outlining our offer for lease terms, defining the nature of our business, stipulating permitting requirements, etc. Then, the landlord reviews it. They might come back with other negotiating terms, they may have selected another business, or our business might not be what they want for their space.
Over the last year I have been in countless “potential” spaces. Because of the various factors I mentioned above, I’ve tempered my enthusiasm with a note of cynicism. While we’ve recently submitted an LOI on a space we love… it is too early to tell. Stay tuned.