Key Issues When Finding Business Premises

Last Updated: July 20, 2010

A number of considerations will lead you to the best location for your business…

Production

As discussed earlier, you must be able to produce your goods/service to a standard where repeat sales are wanted. Therefore, your working environment will directly influence your survivability through quality of output.

Environment

You must also ensure that all environmental issues are covered: waste, noise, health & safety, deliveries, hazards etc.

Cost

Setting your business up in a way that is attractive to potential customers is probably the first thought many of us have. After all, if we have quality premises we must be OK. There is nothing wrong with this thinking, but it’s of little concern if no one visits your office/factory. Likewise, if no one calls your office/factory (as happens in many more businesses than you may think) Serviced Offices, or renting a factory with offices is pointless. If your factory space is under utilized then it is a likely to look like you have too few orders, rather than having lots of space for growth… …at the other end, having too little room can seem chaotic but that is unlikely to reflect badly on management: visiting trade customers will be unconcerned with your work environment if you are busy supplying the quality they need. However, if you are in the service industry and organization is your business it must be reflected in your premises management.

Use

Not all premises are suitable for every type of business with laws and penalties in force that will severely punish those who risk workers, the public or themselves: If you are in doubt contact your local council. In some circumstances you will be able to sublet, but only if you have the express permission of the, say, landlord. If you sublet from a tenant, you should ensure that you have the right to be there: failure to do so could invalidate any insurance you have, as well as leave you at the mercy of the landlord. Be sure who bears the cost of maintenance and what the proper procedure is where maintenance is required. Finally, find out what you are allowed to do internally to the premises: building work, decoration, utilities, down to putting up shelves needs to be crystal clear and in writing. The best way to look at this issue is to think ‘if this was my house, I’d expect tenants to…’

Location and Accessibility

You and your staff must be able to commute to the place of work in a reasonable time, in safety and by reasonable means. Office and factory space is now coming from every type of property as the developers turn ruins and rundown locations into ‘prime’ rentable space. What seems like a worthwhile extra commute when you decide to work in the middle of nowhere can become an office too far for you and your staff alike. Quality Employing Staff & Interviews will be difficult if you locate to an area that has little to do with your industry: the average travelling time of staff increases with individual and business specific needs. Deliveries, for instance, can be overlooked when deciding location and you need to consider where you get your supplies from and the costs involved if they are not local.

Security

Low rent can drive the new business into a never ending cycle of break-ins and vandalism. What looks bright and busy during the day becomes dark and forbidding at night. That said, quality security equipment and fittings, properly installed, can make the difference: to the vandal that is!

Technology

It goes without saying (but I will) a telephone is a must in any bus iness. This has not always been the case, but with the Internet there is almost always some benefit to be gained from being online: whatever industry you are in. Take a good look at the technology capabilities when assessing a premises as many business sites have little in the way of commercial standard Net access. Choosing premises that are serviced by at least two phone/technology providers will ensure that you have choice of product, and price, through local competition (ditto this last comment for any business service). Visit our Tech for a variety of articles covering technology in business.

Things to do

In most circumstances, one occupier moves out as another moves in, as with personal housing, and basic areas need to be dealt with. If you lease or buy dedicated business premises you need to inform your local council of your move so that business rates become your responsibility. The telephone supplier needs to be altered prior to your move to ensure as little disruption as possible. The same applies for gas and electric: ensuring that meter readings are agreed and signed for by the outgoing business. All of these areas need some time spent on them before moving in so that you know the time scale of disruption and to ensure you have alternative means to cope in the short term. If you are moving into a space that has not been used for some time you need to, at least, double the time spent in contacting the service providers. It is not uncommon for bills to be outstanding for which the say, landlord, is held responsible: as such, you will not get the supplies until the debt is paid even if it is nothing to do with you.

And finally, there is a well quoted story when choosing location: it goes like this…

…most people thinking of opening, say, a retail outlet in their local high street walk up and down looking for the service that no one has thought of opening as yet. They would then open the business and hope and pray business arrives, and their marketing budget is a drain as you have to let people know that you have opened a new, say, electrical shop. The smart ones amongst us spot that there are TWO newsagents that can survive in a small town high street: so they open another newsagent because it obviously works, and then they go about offering a better service than the other two newsagents with the aim of putting them both out of business.