Business premises are one of the biggest investments in your business, with monthly costs to consider. So before going into it, these would be the top 5 things to consider before you sign on the dotted line.
1. Is it important for the premises to be close to your home or where your clients might be?
It’s vital to consider the time it might take to commute to your place of work, as business ownership can be time consuming. A place where your clients can see you and your business, gives you great visibility and potentially more business coming through your door. If you do not need to be visible like on a high street, you may be able to rent somewhere in a quieter secondary location, this is usually cheaper than a prime location.
2. Have you given full consideration of the figures, the costs of running the business?
This not only means the business itself – stock, equipment, stationery, but rental, legal costs, insurance, utilities and business rates. It is important to give consideration to the cash flow of the business, how much will be out-going as “overheads.”
3. Do you know where to look for your business space?
It might seem like it is obvious, but unlike residential property where there are many estate agents or an obvious website to visit, business premises are not as Sometimes as a business owner, it’s the getting started, that is difficult. There are commercial property agents, like ourselves Wheeler & Lai Chartered Surveyors, who market properties and there are commercial property websites too such as Estates Gazette, but you can always check with your local authority as well.
4. If you are considering taking up space, and you know where you want to be, consider your competitors.
It’s important to also look around at other businesses in the location you’ve decided upon. For example, are there businesses that are competitors or any that are complementary businesses? Sometimes it is useful to be close, for example Estate Agents tend to cluster together, which might be useful targeting the same audience. Otherwise, it might be difficult if there were 5 barber shops in the same street, it would seem like a tougher market to succeed in.
5. When considering premises and understanding getting the best for you & your business, you ought to think about if the property is being marketed for a fair value.
The asking price is often a starting point, and it’s useful to know that you may be able to negotiate something different. A professional advisor is often useful to guide you. An investment into an advisor now, could save you more money in the long run as you save on rental payments for the duration of your lease.
Our Guest Blogger details:
Sau-Wan Lai, Co-Founder of Wheeler & Lai Chartered Surveyors, who are commercial property advisors, valuers and agents covering the South of England.
Tel: 01983 210 335
Sau-Wan Lai: https://www.linkedin.com/in/sau-wan-lai/