For all business start-ups, one of the biggest expenses can be buying or leasing premises. Before you jump straight in, have a think whether you need premises or if there is an alternative option that may help keep overheads down until your business starts to grow.
Alternatives to having business premises
If you offer a service, for example, you offer Outsourced HR services or are a Plumber, then working from home may be the best option at the start. You can visit your customers at their premises or homes. Small businesses also take full advantage of good quality coffee shops and hotels where they often have spaces that are suitable for business meetings, just make sure the location is not too noisy!
If you don’t want to share your home address on your website and with customers, you can set up a virtual office address. This is a good low-cost option and allows you to have a business address that you can add to your website and other marketing material. Have a look at the NBV Virtual Office options as one good example.
Some accountants allow you to register your business at their premises. Ask them first before you do this as they don’t want to start receiving all your junk mail.
Even if you sell products, you may decide to work from home initially and sell online to start with. This is a great way of testing the market and maybe more profitable than jumping straight in with an expensive shop.
Why you may need premises straight away
There are occasions when you need to have premises straight away. If you decide to sell products, food, clothing, etc. via a retail outlet, then you will need to find suitable premises. You may be opening a bar, café or restaurant again you will need some high-quality premises that will create the right environment for your customers.
Think carefully about the location. It does matter!
You may find very cost-effective premises but then realise that the footfall is very low. If you go for this option, you will need to ramp up your marketing to attract people to you. Alternatively, a fantastic location in the centre of town may be ideal but a stretch financially.
Some businesses that offer services decide to work from an office straight away as this helps them to work more productively. Having a clear divide between home and work life may stop you from getting distracted. In other cases, it may be because of your brand and how you want to position yourself. If you want to attract bigger businesses to use your services then having a high-quality office and meeting room gives the right impression.
Finally, if you need to employ someone straight away, you may need office space as you don’t necessarily want employees having to work from your home.
Financial considerations when finding premises
If you decide that you need premises straight away, we advise that you speak to your accountant and plan what you need to take into consideration. Your first decision will be whether to lease or buy premises. After this think about some of these additional overheads:
• Deposit may be required
• Monthly lease/mortgage
• Business rates
• Utilities
• Insurance
• Service charges
• Décor
• Furnishing
• Signage
These are just some things you need to consider. Make sure that you think through carefully what you need before you take the plunge.
If you need any advice, our team are here to help. You can call us on 01623 490 120 or email