Whether this is the first business premises you’re looking for or you’re upgrading from an existing property, it’s an exciting stage in your business’ development. However, it can also be complicated and a little daunting. The best place to start is to make a list of all the features and qualities your new business needs to have for your business to function. Once you have your list of essentials, you can think about the ‘nice-to-haves,’ but they will only really come into play if you have two properties which are both strong contenders. Now you have focused in on the factors which are business-critical, you can begin your search for new business premises.
Decide Whether to Rent or Buy
There are advantage and disadvantages to both renting and buying premises, but you need to make the right choice for your business. If you buy a property, you won’t be at the mercy of unexpected rent increases from a landlord, and you will be investing in the future of your business. You could also sub-let an area of the premises to add to your income and the interest paid on commercial mortgages is tax deductible.
On the other hand, you will need to pay a significant deposit of up to 30% of the property’s value. This can be an issue for some businesses, and you may want to consider a bridging loan from the Alternative Bridging Corporation to fund this stage of your business’ development.
Renting premises is not investing in your business in the same way, but it can be a much more flexible arrangement which can work in your favor and against it. For example, it is often simpler to end the tenancy and re-locate, and you won’t be responsible for the cost and hassle of maintaining the building. However, the landlord can choose to increase rent at the end of each tenancy period.
Location is Everything
Setting up in the wrong location can make a huge impact on your success. You need to find a location which is easy for staff and customers or clients to access. Take a look at the other businesses in the area and whether or not it’s an area destined for growth. Parking and public transport connections may be other considerations to prioritize.
Consider Both Size and Layout
If you already have business premises but have outgrown the space, don’t fall into the trap of assuming that a bigger space is all you need. The square footage of your premises will be key, but you also need to consider the layout. If you can’t make good use of the space, you will be limited in what you can achieve in terms of the way your business functions. Can employees work collaboratively or are there divisions and barriers? You also need to consider the future, i.e., will the space still work for the business a year or more from today? If not, it may not be wise to move into premises just to move out again in the foreseeable future.
