5 Things to Think About Before Buying A New Business Premises

Buying a new premises for your business to operate in is an excellent way to invest your profits – but there is a lot to think about before you take the plunge. Let’s take a look at five areas that you have to consider.

Size

Size is a tricky one to judge. Presumably you are moving because you have outgrown your previous home But how much more do you think you will grow in the future? Planning ahead is a good idea, but there’s a fine line between having too much space and growing so much that everybody feels cramped. Buying a premises doesn’t give you the flexibility that renting does – will that fit with your overall business aims?

Location

The location you choose will rely heavily on how accessible your business needs to be. Do you anticipate lots of delivery companies and lorries turning up? Or are you the kind of company that gets a lot of customers coming directly to your offices? Think about transport links, and also accessibility for pedestrians if you rely on footfall. There will be cost implications for opening up in an expensive location, but if that footfall is worth it, then the expense will be necessary.

Preparation Costs

How much budget do you have to do up the new property to get it safe and legally ready for opening? Have an idea of your figures, because the chances are that whatever you buy will need work done to it. You will also need to check your council’s commercial property requirements if you plan on making anything more than minor alterations.

Running Costs

Rent and rates you have already accounted for, most likely. But you also need to think about the costs of hiring professionals for regular maintenance duties. If you want your office block to look great from the outside, then you will need a gardener, for example. You can save money in the long-term by investing in fake grass that is easy to maintain and looks great all year round. But flowerbeds, indoor plants, and trees will all need care and attention – and it will be a necessary cost to keep up appearances for your clients and visitors. You may also have to think about night time security if you have valuable equipment stored.

Legal Issues

Once you have taken over a property for your business, you have to take care of everything. And that includes the legalities and regulations imposed by the government and your local council. It’s a lot more complicated than renting office or warehouse space, for example. It is likely you will need a commercial property lawyer on board, and will also need to make sure you have the right insurance in place. Also, be sure to investigate you are covered for any changes you make to the property use. For example, you could decide to rent out space to other businesses to make some extra profit. If you do so, you will then become a commercial landlord and have to comply with many more regulations.

We hope this has helped you get to know what to expect when you buy your first commercial property. It can be a great boost for your business and open up different revenue streams, but it does require a lot of thought.