Your Business Location
More and more people setting out in business for the first time are operating from home because of the obvious advantages that brings
- No additional cost
- No travel!
- Availability of Broadband & Phone Line
If this is the choice you make you should check that there are no restrictive covenants in the Deeds to your property making that unlawful.
Premises – Purchase, Lease or Licence
If you decide to run your business from separate premises then a number of important decisions have to be made. The location and size of the premises are key considerations. The chosen site must provide a convenient point of product distribution, feasible commuting for you and your employees and convey the appropriate image to important stakeholders.
Taking on premises can be a sizable expense for any new business especially when cash flow is uncertain. High street locations can be disproportionately expensive especially when compared to Business park Units.
Buying premises may be difficult if you want to do so in a business name if you have no Accounts to establish that the business is financially sound and can make any repayments required for funding the purchase. You may therefore have to consider buying the premises in your own name leaving you the option of charging the Business a nominal or full economic Rent.
Rents and lease premiums have to be negotiated and budgeted for together with business rates and other utility charges. New businesses will always find it difficult to be offered a Lease certainly without some personal liability or Guarantee being insisted on.
Landlords may see a new or embryonic Business as carrying too great a risk of defaulting on the payments that are due throughout the term of the Lease. The other major consideration for you is the length of the Lease because that represents a major financial commitment that you may not be able to meet if your Business does not prosper.
At the end of a Lease you will be required to leave the Premises in the condition they were in at the start of the Lease which can prove expensive if
- they are in need of repair and/or redecoration
- you have made alterations which have to be reversed
You should not enter into any Lease without getting advice first!
Serviced office Accommodation and Business Units are now more readily available than ever and are an attractive proposition for many new businesses.
You are normally asked only to commit to a short initial period of occupancy (and sometimes none at all) and are usually only required to give 28 days Notice when you want to leave. Licence Agreements can still contain onerous Conditions and again you should get Legal advice before you sign one.
Help in Getting Business Premises
Agencies often linked to Local Authorities and other Development Agencies which focus central government aid to areas of high unemployment and economic depravation sometimes make the route of securing premises for a new start-up business easier. They may be able to identify suitable premises and any avenue of financial support that may be available.
In some parts of the country you may be eligible for financial inducements for starting a business in these areas and employing locally from an available workforce.
The types of incentives which might be given in such circumstances could include rent free periods, business rate holidays, or monetary contributions. Local Enterprise Partnerships have been set up to try and attract new business investment in their areas.