What premises do I need when starting a new business?
You should be starting by thinking everything through. The first question when starting a small business is: “Do I really need premises?” Not every business does but if the answer is clearly yes, then what sort? The answer to that comes from deciding exactly what the business does. Many more people than you might think run businesses from the WRONG premises and it damages the business.
When trying to decide what type of premise or location would be suitable for your business, you may find it helpful to ask yourself the following questions:
- Are you displaying goods, customer facing, offering to passing trade?
- Are you selling over the internet?
- Are you trading information, skills or knowledge?
- Are you storing, building, making or changing materials?
Avoid taking premises straight away if at all possible and when you do, try to beg borrow or steal space for the first few months. Then, when you have some idea of the direction the business is going to go, think about taking premises. Now, it may not be possible to do this, if for example you are in a business that needs licences and approval from the authorities as a prerequisite.
When you do need to take premises, try to avoid going straight out looking, before you really understand what it is you are looking for. Think of your premises like a member of staff. You would not hire a key employee without having a clear idea of what you want that person to do, what type of skills they will need, what training potential they will have and where they will be located, aside from their career and salary aspirations. So it is with your premises. You need a job spec for the premises and another one for the terms of the agreement you want to reach. Before you call a single agent, you need to know what you want.
The landlords’ agents are acting for the landlords and NOT for you
The landlords' agents should be helpful and informative. They should offer you relevant and appropriate premises to match your enquiry; and provide supporting information. They are not going to “get you a good deal” they are not going to fight your corner. Their primary duty is to their clients, the landlords…not you. Above all, don’t enter into negotiations or give away elements of your agreement until you are ready. The agent may drop terms into the conversation or during an inspection, like “it is a ten year lease” or “there is a three month rent free period”. You are best to substantially ignore this as it is intended to narrow down the terms of any agreement early on. You need to be free to propose your terms as far as is possible and reasonable; and when you are ready.