Business premises: What you need to know

If you've reached the stage in your business where you've outgrown your spare room or decided to venture from online retailing into having a physical trading spot it pays to be considered when choosing business premises and not taking the first property you see.

Pop-up shops can be a great way to test the water and see whether a high-street location can work for you. Once you've decided to take that next step there are a number of issues you should consider when carrying out your search. Here is a checklist of items to think about.

The building

• Does the property have enough space for your business needs?

• Can deliveries be made?

• Are there canteen facilities or is there a café or shop selling food nearby?

• Parking: Is there enough space for staff and customers? What are the parking costs?

• Access: Does it meet the requirements of the Disability Discrimination Act?

• Availability of services: reception, kitchen, toilets, cabling for computers, etc.

Location

• Is the location convenient for you and your customers?

• Local transport facilities: How will staff and customers get there?

• Are there shopping facilities nearby for staff?

• If selling to the public, are there sufficient numbers of potential customers passing by?

• Crime: Does the area have a high crime rate? It could affect your insurance.

• Brand: Will the location enhance the business image with existing or new customers?

Affordability

• Lease terms: How important is stability, or is flexibility more important?

• How much are the costs associated with the premises - business rates, water rates, utility costs, maintenance or management fees?

• How long before a rent review is scheduled?

• If the property needs fitting out of refurbishment, is a rent-free period available?

Other options

• Would serviced accommodation be a better solution?

• Would a temporary solution be better until the business is better established?

• Would another business be prepared to rent some of its free space?

• It pays to be flexible when looking for business premises.

Other considerations

There are a range of financing options with property from buying, leasing or sharing with another business. Buying is a long term commitment, leasing can also be for a relatively long term.

If the business is new or the cost of the premises requires a significant increase in sales it might be prudent to test the product in other ways first such as on a market stall or by using a pop-up shop.

Before signing a contract to buy or lease a premises you should take legal advice so that you fully understand the commitment.