Don’t Sign That Lease Just Yet: Why Due Diligence Can Save Your Business

Starting a business is exciting—but signing a lease too soon can turn that excitement into regret. We’ve seen it happen over and over again: passionate entrepreneurs lock in a location, start investing time and money, only to discover they can’t legally run their business there.

So, what went wrong? Let’s talk about the most overlooked step in starting a business: doing your due diligence.

The Problem: Leases Signed Before Licensing

Too many people skip straight to signing a lease because the space “feels right” or the rent is affordable. But the reality is that local governments regulate what types of businesses can operate in specific areas—and if your business isn’t allowed under those land use (zoning) rules, your plans may come to a halt.

Even worse, you could be stuck in a long-term lease for a space you can’t legally use.

Zoning & Land Use: What You Need to Know

Cities and counties divide land into zones—commercial, residential, industrial, etc.—and each zone has its own list of permitted uses.

For example:

• A beauty salon might be allowed in a commercial zone, but not in a mixed-use residential area.

• A group home might need a special zoning confirmation, conditional use permit, or site approval.

• A restaurant may be allowed in theory, but restricted by parking requirements, fire codes, or even proximity to schools or churches.

Just because a property has a “For Lease” sign doesn’t mean your business can operate there.

Common Mistakes Business Owners Make

1. Skipping Zoning Checks

Many assume that “commercial space” = “any business allowed.” That’s simply not true. Zoning must match your specific business type.

2. Assuming the Landlord Knows

Landlords may not be aware of the zoning or licensing requirements for your type of business. It’s your responsibility to check.

3. Applying for Licenses After Signing

It’s a painful moment when someone finds out—after signing a lease—that they need multiple approvals, inspections, or licenses they hadn’t budgeted for.

4. Overlooking Site Conditions

Some spaces may need upgrades (plumbing, ADA access, fire alarms) to pass inspections—even if zoning is approved.

What You Should Do First: A Due Diligence Checklist

Before you fall in love with a location, do the following:

1. Check Zoning Compatibility

   • Ask for the zoning designation of the property

   • Confirm your business type is allowed (get a zoning confirmation letter if needed)

2. Understand Licensing Requirements

   • Research what city, county, and state licenses you need

   • Ask: Will this location pass all required inspections?

3. Verify Special Permits or Approvals

   • Will you need a Certificate of Use? Conditional use permit? Site plan approval?

   • Are there parking, signage, or operating hour restrictions?

4. Get Professional Help

   • If this feels overwhelming, that’s what we’re here for. At FirmaGo, we specialize in helping small business owners understand all of this before they commit to a space.

Real Talk: Don’t Let a Lease Become a Liability

Opening a business without checking zoning and licensing is like building a house without checking the foundation. It might look good at first—but problems will come later.

At FirmaGo, we help you make informed decisions so you can move forward with confidence, not confusion.

Need help with due diligence?

If you’re considering a new business location in Palm Beach County or nearby, reach out. We’ll help you check the zoning, understand the licensing requirements, and guide you through the steps—so you don’t waste time, money, or energy.