| The Perfect Premises for your Business |
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Premises.
Deciding where
Wherever you decide your business will be, there will be some costs. You will need to adjust you Business Plan once you are satisfied that you have got the extra costs worked out correctly. Working from home Many people start their businesses in their homes. The advantages are fairly obvious. There is no cost in time or money in getting to work and you avoid the costs of an additional building. However, it is not entirely plain sailing. First you must consider planning permission from the local authority. To use your domestic dwelling for business purposes is to change its use, and for that you should consult the planning officer. You should check whether there are covenants in the deeds pr lease of your house which forbid the carrying on of a business. Also look carefully at your insurance policies. If anything to do with your business (such as the store of inflammable materials) sets your house on fire, you may not be covered. If you are going into the catering business, the local Public Health Department will be very strict about hygiene Starter premises Some local authorities and Enterprise Agencies manage blocks of small premises with easy in - easy out lease arrangements. Some of these have central service facilities such as a communal photocopier, answerphone, and receptionist/typist. This type of premises can be very useful when you are just starting up, making it easy to move to larger premises when you grow and reducing the possible losses if the business fails. Buying premises People starting up do not usually have enough capital to buy their own premises. If you are lucky enough to have such money available, there are advantages. Premises are useful collateral against which to borrow money in the future. It is possible to arrange a commercial mortgage with a bank or building society. This is similar to a house mortgage. But beware of getting too much of your available cash tied up in long term agreements. Make sure the premises are in the right place and have the right facilities like car parking, floor strength, etc. Leasing premises This is by far the most usual way of acquiring business premises; it ties up much less capital than purchasing and therefore leaves more capital available for running the business. Leases however are very complex documents, often full of implications which do not become clear until something nasty happens a long time after you have signed them. Buying a business If you are buying and existing business, the property part of the deal will be still either a purchase or a lease and the points made in the previous paragraphs still apply. In addition you will have to satisfy yourself that the business can be viable with you running it and that you are paying a price which will give you a proper return on your investment. Mobile shops The main task is to consult your local authority about licenses and permits. You will need a permit to operate in the street; and the Environmental Health Department will need to approve your vehicle and methods before issuing a licence, particularly if food is involved. The police should also be consulted concerning if and where you may park to trade. It would be sensible to talk to these people before you buy your vehicle. Planning control Do not forget that whenever you want to change the use of premises or alter the shape in any way, you must consult the planning authority. |
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