When choosing a business premises, there are so many factors to consider, many of which can be extremely important for long-term success. A business premises isn’t just a hub for the day to day running of the company, it’s also one big advertisement. Your place of work is often the first impression that you make on a customer or client and therefore should be a priority.
Obviously, the type of business that you have will dictate the type of premises that you need. Retailers will need to think about customer friendly locations, whereas service providers will require office spaces. One decision that will affect all businesses is how they acquire their premises and money is a huge factor in this.
What are you looking for?
As with any big business decision, preparation is key and choosing the right premises is no different. In this instance, preparation basically means ascertaining what requirements you need from your place of work. This can include a variety of different factors, from location and appearance, to specific facilities or areas. For example, will you need a space for visitors or clients, will you need a staff room or a kitchen area? Size and space are also important issues, as different businesses will have different needs. Retail spaces will often need to be well located and have a decent store frontage, whereas office environments tend to require more room. This is the time to create a plan of action and a checklist as this will make the search for the premises much easier.
License, Lease or Buy?
Of course, one of the more important factors to consider when choosing a place of work is how you will pay for it. Fortunately, there are many options available with some to suit every business. Licensing allows you to temporarily use a space for work, however it doesn’t have any contractual guarantees. Therefore, this type of business space is best suited for workshops, show spaces or pop-up shops. You can also choose to lease a space, which is basically the equivalent of renting. Leasing offers much more stability in that you can often agree to long-term contracts, anywhere from 2 to 25 years. Of course, the final option is outright buying a building or space and owning your own workplace.
The option that you choose will depend on your business and its requirements and resources. Those who are looking to invest in a long-term solution should buy, however, businesses with less capital or less need of a permanent solution are better suited to licensing or leasing.
Legalities
Having your own business premises can provide a wealth of benefits but there are also many responsibilities to consider. If you choose to buy a space, you become the landlord as well as the business owner, which means much more responsibility. This includes business rates, health and safety, planning permission, insurance etc. Those that choose to lease or license, will often share these responsibilities with their landlord. However, you may still be liable for business rates and it’s recommended that you also have your own insurance.
When it comes to running a business space, maintenance and repairs can be a regular annoyance. This is one of those instances in which licensing is particularly beneficial in that it often includes built-in benefits, for example repairs are completed by the landlord. When it comes to leasing and owning, it’s often the business that is liable for payment.
The choice whether to rent or buy a premises is often dependent on how it will affect your taxes. This can be a complicated area, however the team at Taxation Investigation are experts in this field and can provide help. If you’re looking for guidance on this topic, don’t hesitate to get in touch with Taxation Investigation.
