Find a commercial property! Sounds easy, but sourcing suitable business premises is a hugely important task not only because of the financial commitment it represents but also because of the impact it could have on your profit margins.
Identifying a conveniently-located warehouse, for example, will save you thousands in operational costs and also increase your accessibility to suppliers while choosing the ideal venue for a potential trade counter business will increase your custom.
In normal circumstances, securing a commercial property will involve the signing of a lease outlining a commitment to rent the premises typically in excess of five years (although they can be longer).
Peter Knight, director of Manchester-based property management company Knight Morris Ltd, said business owners should think very carefully before signing on the dotted line, particularly if the business is relatively new.
“In these turbulent economic times, many businesses are struggling and can hardly map out the next year let alone five so it would be wise to seek professional advice before embarking on a long lease commitment which will tie up critical funds,” he said. “Invariably a lease will involve additional liabilities such as reinstatement once the agreement terminates and this will obviously cut into company funds.
“A property management company can find a commercial property for you. They will take an overall look at the market and perhaps identify a site which is less risky for the business, more flexible and ultimately more cost effective until the economy recovers and business improves.
As experienced property consultants, they have the right network in place to find a commercial property which may not have made the open market yet or they will put you in a better position to negotiate a better deal on those that are.”
Property management companies can navigate complicated leases for you, so you know exactly what you’re letting yourself in for. As well as explaining the hidden costs such as the likely set up, land remediation and building running costs and ultimately the exit liability which can be hidden in legal jargon.
We are in an unstable economic climate and there are deals to be made with regards to leasing packages and discounted rates. In fact, many landlords are offering huge financial incentives to attract high quality tenants. Seeking guidance from a professional will ensure your business is placed in capable hands which will save you both money, time and heartache.