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Finding The Ideal Business Premises
By Naz Daud
Today, on
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the cover letter
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Robert Roger
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In business, finding the ideal location for your business premises is often one of the main factors contributing to the success or failure of your new venture. You must find the ideal premises from where to launch and do business from. I have known entrepreneurs to go bankrupt even though their business idea was brilliant purely because they setup in the wrong location.
A friend invested money in a coffee shop with a similar theme to Starbucks just at the time when this was in huge demand. He setup the business in an alley just off the main shopping street. He did everything right apart from his choice of business premises.
Although his rental was much lower than being 50 meters further up and on the high street itself, this contributed to his downfall. Passing traffic was just not willing to take a small detour to have coffees, teas, biscuits and a cake.
Another friend setup a stationary wholesaler next to a busy cash and carry. Guess what? He was extremely successful. When all the retail businesses were going to stock up at the cash and carry they would drop in to his premises first as it was on the way. Sales of stationary plummeted at the cash and carry and the stationary wholesaler went from zero turnover to significant profits all in the first year. His business is still thriving to this day.
When choosing premises, you must first take the needs of your customers into account. Where do your ideal customers frequent regularly? How do they get there? Is it by foot, car or public transport? Taking all this into account, find the ideal premises so that it is easy for them to visit you. If they have to take even a slight detour, you might find that they do not! If they cannot find parking chances are that they will pass you by.
Choosing whether to buy or rent your premises comes next. The location should always come first. Buying is always preferable to renting but however there are circumstances when it makes sense renting.
When we were expanding our packaging business, after picking up our first corporate client, we needed huge premises, 20 times the size of our existing site. Dundee was facing a tough economic climate as many manufacturers were shutting down and moving their base to the Far East. Rentals almost collapsed in certain industrial areas and we were able to rent premises at rock bottom prices and negotiate a long term lease. If we had to buy these premises, our loan repayments would have been substantially higher.
Speak to your bank manager and accountant and take expert advice after finding the ideal premises before deciding whether to buy or rent. Your business circumstances and local rental values will play a significant part in the decision process.
If your business is expanding fast, you might consider a short term lease as you will probably have to move to larger premises in a few years. If however, your business is at a level that you are happy with and you do not envisage further growth, then look at purchasing your premises or negotiating a longer term lease.
Getting your premises right will be key to your future growth potential. Take your time and find the ideal premises no matter what and be prepared to pay over the odds for the best location.
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What Writers Must Know About Creating And Selling Information Products
By Jo Ann LeQuang
Not so long ago, most information available to the public was broad, sweeping, and highly generic. Writers who compiled that information tended to have to write about large topics in Read more...
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