Unless you run a digital or home-based business you’ll need to choose a place to do business.
A “business premises” is the place where you house your offices, retail store, or restaurant. Many different needs need to be considered because each business is radically different.
Here’s what you need to consider when choosing your business premises:
Type Of Premises
The type of premises you have will vary radically depending on the type of business you run.
Some examples include:
- A storefront where you sell products
- A professional office where you have staff, reception, and work offices
- A restaurant or cafe location where you can serve food and beverages
- A shop where you store equipment, vehicles, supplies, and do any commercial work
- A factory where you manufacture the products that you sell
- A shared office for service providers with your own room to provide your services
Business premises include:
- Warehouses
- Manufacturing plants
- Storage facilities
- Shared commercial offices or co-working spaces
- Full commercial spaces
- Retail premises
- Restaurants or cafes
- Home offices
- Pop-up locations or market stalls for temporary premises
When choosing your business premises don’t just consider where you are now. Consider also what your future needs will be.
Buy or Lease
There are different benefits to buying and leasing business premises.
Consulting with a business advisor, solicitor, or accountant can be in your best interest when you begin to see whether the investment is worth it. They can also help you understand the tax implications of each option.
When you’re starting your business consider that it may be smart to either lease for the first few years to ensure that your business plan and strategy will be profitable before investing in the purchase of a property. Or to lease a space that has an option to purchase when your business is ready [download the Free Business Toolkit for a template to write your own business plan].
Make sure to carefully read lease and purchase agreements and seek legal advice before signing any contracts that could cost you or your business.
Location
As the saying goes “location, location, location”. Location can be a powerful force in the success of your business. When you choose a location consider it carefully.
Pick a location for one or a combination of the following reasons:
- Your distributors are nearby
- Your suppliers are nearby
- Other businesses complement yours
- The area is known for your product or services
- The costs are affordable
- This is a growing or up and coming area with future opportunities
- Upcoming construction plans nearby
Changing Location
Changing your business premises can be difficult and time-consuming. It can also have significant financial costs including asking customers to come to a new location, logistics or suppliers and distributors, and the cost of moving itself.
But there are many reasons to move your business. These include:
Customer Experience
If your business will improve with a new location due to strong foot traffic or moving to an up and coming area.
Your customer’s experience may be greatly improved when you move to a new more relevant place to reach your target market. Or when you create more ease and convenience for your customers to buy from you like expanded parking or moving to an area with many shops that make the area more attractive.
Do research to understand your customers before moving.
More Space
If your business is overflowing and needs more space moving can be important.
This might be due to needing more manufacturing space, more area for seating for customers, or more parking.
When your business is growing consider relocating to a bigger location.
Lower Costs
Lower costs can be one of the most compelling reasons to move your business premises.
Moving to a new more affordable location can help you cut costs and increase your profitability.
For guidance, read How To Choose A Business Premises.