Premises
From Entrepedia: The Entrepreneurship Wiki
Property is a both a major decision and a prospective minefield for any company. So when choosing your business premises be aware that there are many things to bear in mind not only for now but also for the future. In particular undertake any long term property commitments with great care as many businesses have found there requirements change totally over the life of a long term property commitment.
Locating your business
First things first, you will need to decide what the actual needs of your business are – both now and over the short/medium term. You should take into account:
- Location/visibility for your customers
- Proximity of competition
- Access to services such as banks/ public transport
- Labour sources and access
- Expansion possibilities
- Access – for customers and deliveries
- Space/Storage
- Appearance/image
Don’t rush choosing the right location for your business and be prepared to put in the effort to research things properly. Many entrepreneurs will tell you that it can be a long hard search but finding the right property brings rewards from operating out of an excellent location that far outweigh the effort of finding it. And if you do not have time at the moment to properly investigate your property requirements fully at the moment take a short term service deal until you do.
For retail businesses its all about location, location, location, so count the number of pedestrians passing your prospective location. If you will be relying on passing car traffic ensure that there is ample parking space and make sure your premises can be quickly identified with your products.
Companies with a sales force who visit clients or a business where clients and partners often visit them need to ensure that public transport, major roads and motorways are easily accessible.
Also you need to be confident that you can recruit the right quality of staff from the local area. Check with the local job centre or careers advice centre to see what the going rate is for your area. Similarly, if you are relocating you will have to consider the needs of your present staff and, where necessary, cater for their departure if you are moving a long way.
Location incentives
There are incentives available for small businesses to locate in certain areas and also incentives to keep successful businesses operating in an area. Talk to the small business enterprise personnel at your local authority (LA) for more information regarding your current location and check out any incentives on offer from other LA’s if you have the flexibility to move areas. Building good relationships with the LA pays off, as many have government funded schemes that are aimed at helping the small business manager run his business more efficiently. LA's are also usually a very good source of information and contacts.
Leases
Entering into a lease is a big financial obligation; to help make sure you get the best deal, make sure that you:
- Negotiate on the rent
- Try and negotiate a rent free period
- Negotiate a break clause
- Pay only for the space you actually use and not dead space such as passageways and common areas which can be used by other tenants
- Negotiate with the landlord to pay a percentage of any refit that may be needed
