New Business Premises Considerations

Before you secure new business premises, it is important to consider the reasons for this decision and the benefits it will deliver to your business. It is also important to consider what systems and processes you have in place, and how this will be transported to the new premises. If you have a retail shop, for example, you may need to consider things such as the brand of your business, the brand strength (this should have been protected in section 5), your point of sale and ordering systems, as well as the integration between the different premises. Success leaves clues: if you have a successful retail shop in one premises, that design and layout should be replicated so that any returning customer or client recognises your brand and will respond in a positive manner.

Where your business plans to expand to a second office, it is vitally important to consider how the offices will interact. For instance, careful consideration needs to be given to telephone systems, email and business/practice management software needs. Due consideration must be given to new and emerging technology and how the business expansion provides the opportunity to upgrade systems (e.g. internet-based telephones) and processes and increased integration between offices (e.g. Cloud software) for a competitive advantage.

You also need to carefully consider the additional overheads of running another premises. As a general rule of thumb, you should double all your current business costs to cover the costs of the new premises, as it is likely you will have to pay similar rent, outgoings, staff costs and so on. You will need to cover the business expansion costs from your original business premises until the new business generates sufficient income to support itself and then generate a profit.

It is critically important that you track the performance of your new business premises and monitor the performance between the different premises. These types of processes were discussed in section 3.2 and become even more critically important when you expand your business. Where a business expands, the same considerations in relation to the leasing premises that were discussed in section 2.2 should be revisited. No matter what premises you are looking at for your business, those considerations are crucial.