Your Business Premises
Securing the right premises is crucial to the success of your business. The right business premises will help you operate productively and could help you cut operation costs. But how do you go about finding the right one?
Before you begin, you’ll need to think about your current situation, your business needs and your goals too. Some questions to answer may include:
What can you currently afford?
Where would you be best placed to operate? Will clients and staff have easy access to the premises? Is it in a suitable location where your brand will be seen? Are there good parking options and available transport links?
What size and layout will allow operations to be carried out efficiently, comfortably and productively? What are the essential facilities and are there any special requirements?
Renting or Buying a Commercial Property
Buying a Business Premises
Buying premises is a good idea for many businesses as it gives them the freedom to do what they want with it. It’s simpler to redevelop the layout or expand the space for business growth. Plus, there’s less restriction on how long you can stay and the property’s value may go up over time – a benefit when you decide to sell.
However, for new businesses in particular, buying may not be the most viable option. You’ll need the initial capital for the purchase cost and in some cases at least 15% of cost for a deposit plus VAT.
Additionally you’ll usually need to fund maintenance and repairs for the building, but you may incur other costs such as solicitor’s fees, building surveys and Stamp Duty Tax.
Renting a Business Premises
Renting can be more appropriate for many businesses – start-ups especially – as they are relatively easy to find, tie up less capital and are usually legally well-protected. Another major advantage is that you can be flexible with how long you stay.
When renting a business premises, you may need to pay a premium to buy the lease and you still may also be responsible for repair and maintenance costs. Plans to develop the layout may additionally be restrictive in a rented property.
If you’d like more information on buying and renting premises contact a member of out team today. If renting premises is not a viable option, you may also want to consider working from home as a more affordable option – visit our Running a Business from Home section of this website for further details.
Business rates will apply you if use a premises or part of a premises for non-domestic purposes. How much you pay will be worked out as a ‘rateable charge’ by the Valuation Office Agency (VOA). Some premises are eligible for business rate relief from the local council. You’ll need to apply for relief, although you could receive up to a 100% discount on your business rates:
- Small business rate relief
- Rural rate relief
- Enterprise zone relief
Contact the Worcestershire Business Central team to find out more.
Whichever way you secure your business premises always check the legal terms before agreeing to anything and ensure that there are no hidden costs, unwanted clauses or obligations. Remember to check the time you’ll be tied in and whether you can afford the repayments over the long-term.
You may benefit from using a commercial property solicitor to be sure that you’re aware of all the conditions of the contract and they may be able to help you negotiate on the price.
As well as the cost of the actual premises, you’ll need to allow expenses for fit outs and furnishing, equipment and ongoing utility bills. And it’s not just these costs that you’ll be responsible for when securing your premises; you may be responsible for site Health and Safety. Some of the key requirements include:
- Workplace fire safety
- Electrical safety
- Workplace temperature
- Water and sewerage rates
Get in touch
Think also about your development as a company and whether you’ll want your premises to accommodate future growth. If you’d like more advice and information on choosing the right commercial property for your business, simply call Worcestershire Business Central on 01905 677 888, email firstname.lastname@example.org or fill out our online enquiry form below.