Business premises

buffers65

I run my Cambridge Weight Plan business from home but it has got so big now, I want to get a salon to run it from there, and maybe get another couple of consultants to rent rooms in there, and a couple of beauticians, so we can provide an all round beauty service.
What i need to know is what do i have to be aware off re expenditure.
I am looking at premises, but don't know if i am entitled to any relief, H&S care, rent costs, whether i can be bartering with landlord/council etc re annual rent. All those sorts of things.
If anybody can help me move forward with my plans then that would be gratefully appreciated.

Savvy_Sue

You can certainly barter over rent. However before you sign ANYTHING, please get legal advice from a solicitor who specialises in this area.

If you say you can't afford that, then you can't afford to take this step. End of. You can't afford NOT to take legal advice before signing a lease on commercial terms.

CKhalvashi

I have to say I agree with Sue here.

With commercial premises, there is little protection from any terms by law.

CK

Savvy_Sue

I'll give a little bit more advice here - take this as general background from someone with no experience in this area, or indeed in many others I comment on.

The step from running a small biz from home and expanding into premises is a big one, as is the step from just operating as a sole trader and expanding into working with others. If you don't yet have an accountant, I'd definitely recommend getting one now. Go and talk to 3, of different sizes, outline your plans and see what their response is. You shouldn't have to pay for a fact-finding meeting.

In this particular line of work, I'd respectfully suggest that there are beauty salons popping up all over the place - in the last couple of years two have appeared within a 10 minute walk of my house, and I'm astonished there's enough customers for them! Before opening yet another, be very certain that there is a market for what yours will offer - I know you're not primarily offering beauty services, but you want to make them available.

You might do better to check out what's available for you to rent in an existing salon or 'healthy lifestyle' place - for one thing, you'll get a feel for what's being charged, and what's usually included, and particularly what's NOT included. Again, 'rooms for hire' seem to be available in lots of places not too far from me - en route to work I pass at least two which offer physio, chiro, massage, chiropody, reiki and who knows what else. I can imagine that weight loss might fit well within them. There's easy advertising within the premises, and I should imagine a fair bit of cross-referral. I know when I last saw a chiropodist (because one arm wasn't working) I also picked up a leaflet about physio, as I though I might need some. Very helpful receptionist.

You'd have another advantage too, in that you could dip a toe into the water without moving ALL your business out of the house. If it doesn't work, get your toe out smartish. If it does, book more sessions, or move somewhere where you can, or operate from several - may suit your clients to have a choice of venues.

As for running your OWN premises, the most important thing - and the only thing you CANNOT change - is location, LOCATION, LOCATION. May be less critical for you than for a sandwich shop, for example, which needs passing foot-trade. But if you're in a city centre, can you offer parking? If you're a bit further out, will people come to you? Are you easy to get to, by car, by bike, on foot, on public transport? I might drive 30+ miles to a really nice spa occasionally, I won't drive 10 miles every week to a weight loss consultation.

As for when you have your own premises, you'll need to factor in the costs of heat, light and water (which will be metered); refuse disposal (you'll need to find and pay for a contractor, and working out which one is best can be a minefield); insurance - probably not buildings, but contents, public liability, employers liability. Cleaning - if it's not included within the building's services - will you do this, or get someone in? Window cleaning? A receptionist?

That's really just for starters, see where you get to with that lot ...

Brassedoff

Savvy_Sue wrote: »

You can certainly barter over rent. However before you sign ANYTHING, please get legal advice from a solicitor who specialises in this area.

If you say you can't afford that, then you can't afford to take this step. End of. You can't afford NOT to take legal advice before signing a lease on commercial terms.

Totally correct advice. A solicitor will be the best first investment you'll make.

My rule of thumb is advertised rent minus 30% as its a renters market, then work up from there. Or make the LL responsible for everything, save the business rates.

Savvy_Sue

Talking of making the LL responsible for everything, it's absolutely essential to understand what the terms of the lease say with business premises, and that's where your solicitor comes in. It's not at all uncommon to be on a full repairing lease - in other words, if the pipes freeze and the carpets are ruined, it's the tenants job to fix and replace. And it's also not uncommon to have terms which say that the property will be returned in the same or a better state than at the start - in other words, you rent a grotty little space which you decorate and you install plumbing and fix some nice shelves to the wall, and the landlord says you have to take them out and 'make good', OR insists that you replace the carpet because it's more worn than when you moved in, and so on.

So a full and photographed inventory is also strongly recommended.

martindow

I'd second the comments made. I think you need to carefully consider all of the expenses and how they would affect your business before you take this step. A lot of businesses that run successfully from home would rapidly go under if they were burdened with overheads of separate premises. It may be that you would be better off staying as you are and not attempt to expand in this way.

Brassedoff

I advise many work from home start ups thst make their first move, you generally have to account to the power of six in respect to your current out goings. If I can add, you are going agonist the flow at the moment. Even established businesses are moving into a domestic scenario.

Close your eyes and imagine how you could run your practice better from home. Have you a garage you could invest the money on to bring thst into a practice? I have four Chiropodists and Chiropractors who have converted their garage in to their clinic. It allowed them to work longer and more flexible than from an away from home location. Then the overheads were reduced (EBIT) by 75%.

If not, d a proper business plan. Just because you think it's a great idea, it does not mean others will, 8 out of 10 business never see their fifth year!

You have to consider location as Sue has said, it can make or break your business. Town centre = high foot fall, but it also means rent & rates from £50K PA +

Or do you have a location close to a leisure facility? Could you sub let from a business that is already their? I put a freelance Physiotheripst into a non-league football club, apart from 6 hours on a Saturday afternoon they had run of the roost at nearly stupid rates (stupid=so low cost). Or better still, is there a small Cannons type gym that would rent you space?


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