Signing your first business premises lease is a big deal. Perhaps it’s your very first office. Business is booming, and you’re finally moving out of the spare bedroom! Maybe it’s time to upgrade to a warehouse or factory, and take control of your own production. Whatever your new location has to offer, it’s a big (scary) step. That’s why it’s crucial that you take your time when making the decision. It’s a big commitment that will affect the next stage of your company. Below are five things to think about before you sign on the dotted line.
1. Budget commitment – Signing a business lease binds you to a financial commitment. It could be the next year, or it might be the next 10. The lease on business premises varies according to the size, type, and the industry itself. Can you realistically commit to that period of time? Do you have the current demand to support a long-term project? Signing a long lease deal is always a risk, as you never know what the future holds. But, you need confidence in your ability to make the next six-twelve months of overhead payments.
2. Amenities and maintenance – Ideally, you’re looking to move into a place that’s fully kitted out. Most modern offices, for example, now come with broadband and phone lines already connected. But, you also want to make sure that the structural aspects and maintenance are sound. The last thing you want is major repairs and work six months into the lease. If you’re taking on a factory or warehouse, look for extraction ducts and other built-in maintenance. You may even need industry specific equipment like a woodworking dust collection duct. Be thorough when checking the facilities.
3. Room to grow – We know you’re already making a huge leap forward in your business. But, never stop thinking about the next step. Is your new space going to give you room to grow? We tend to advise business owners to account for another 20% growth. Leave room for 20% more staff and equipment. That way, you won’t outgrow your new premises within the year.
4. Location – The location of your new premises is a surprisingly important factor. For example, did you know that any commute longer than 30 minutes breeds employee resentment? Try to position yourself in the best possible place for your workers. It’s also worth considering where your competitors and major client base are situated. It always helps to locate your business close to your clients.
5. Layout – Last of all, consider the practicality and layout of the new premises. Most new offices, for example, are open plan. It’s up to you to decide whether that’s the best option for your businesses set up. If you’re signing for a warehouse or factory, is the existing layout optimal for your production? It will be expensive and time-consuming to make alterations.
If you can answer all these questions with confidence, then you’re ready to sign! Congratulations, you’re about to take your company to the next level. Best of luck!