How to find the perfect business premises

Of all the things you need to deal with when you start your business, two areas are particularly scary and will give you the most hassle: recruitment and finding premises.

If you get either of these wrong, you will face big bills and a load of work to overcome early in the life of your new venture. Get them right, and you’ll wonder what all the fuss is about!

While hiring the right people is an imprecise skill, finding the perfect premises can be broken down into simple tasks and checks.

Getting the right premises is simple on paper. It’s about finding the building that suits your business and its needs best, in the right location, at the right price. In reality it’s about doing a lot of leg work, and using your head more than your heart.

Before you do anything else, you should determine exactly what your business needs in terms of size, location, and budget. Once you know these, the rest will follow.

What size offices do you need?

Size often dictates when a business moves. As more staff or equipment come on board, existing premises can suddenly seem cramped.

Health and safety laws provide guidance on how much space is needed for each employee or for manufacturing.

You need to take a long-term approach. How many people do you plan on hiring over the next three years? Few people enjoy moving, and shifting a working business can be stressful.

If your business is a start-up with no trading history, try to make a realistic guess at what facilities it will need in the years to come.

If you have outgrown existing premises, ask yourself why. See past the current space problem demanding a move and think long-term.

When examining potential new premises, consider what you will do when you run out of space again! Can your building be altered inside by knocking down walls or installing a mezzanine floor? Is there additional space nearby, or would you be allowed to extend?

How will the landlord feel about potential future alterations if you are renting? Are you likely to run into planning laws? These are the kinds of questions you need to answer before signing on the dotted line.

Location

Looking at location, this will be dictated by the type of space you need. Do you want retail premises, somewhere to manufacture or just an office?

For shops, High-Street premises are expensive but will attract valuable passing trade. The further away from key shopping areas you move, the less rent you will pay, but also the less passing trade will walk in.

Manufacturing demands lots of cheap space and great access. Look for large premises near key roads. Older buildings are often cheaper, and it doesn’t really matter if they are a bit tatty.

For office space, ask yourself if image is important—will clients visit your premises? If they will, then make sure they will be impressed. If not, don’t worry about what your offices look like. Instead, focus on getting a good space at the right price.

What’s your budget?

Which leads nicely to the budget. The temptation for every small business looking for its first premises is to go for the cheapest property available. That’s a false economy and can hold your business back.

Cheap property is cheap for a reason. It might be badly maintained, unfit for purpose, too cold, or too hot. If it looks like a bargain basement, you may struggle to attract staff, let alone customers.

The sensible route is to work out a realistic budget for your premises before you start looking at prices. What do you want to spend, and what’s the most you can afford to pay? Don’t forget to consider all the financial aspects of the premises: rent, rates, electricity bills, phones, etc.

Then, when you are weighing up the different premises available, consider the pros and cons of each before calculating the price. If your chosen premises are still the cheapest, congratulations!