Where you will set up your business? Do you need offices, industrial premises, a workshop – or could you work from home? Making the right decision is easier with the help of your accountant, an IFA or a financial adviser, and a commercial property specialist.
As a sole trader, you may be thinking about setting up your business from home. Your accountant and your IFA will advise you who you should tell about your plans. For example, if you have a mortgage on your property then your lender will need to know; your building and contents insurance provider must be told – otherwise you could invalidate your policy – and your local authority will want to understand how much of your property will be given over to commercial premises for certain businesses.
It’s possible that there could be very little impact on your home, especially if you’re working from one room of the house. But if you’re setting up a business that has clients visiting you on a regular basis, then you may find that your insurance costs and possibly your council tax increases. In certain circumstances, if your business takes up a significant proportion of your home, or if it affects the local area – because your clients need to park their cars or you have lots of deliveries for example – you may need planning permission from your local authority.
In a larger business, or if you need a certain type of premises, it’s important to find the right building – for you, for your employees, and for your financial situation. Geographically, will it be close to your home? Does it need to have a high-street location to catch passing trade? Will there be an opportunity to expand at a later date? Are there any restrictions on the premises you’d like to rent or would you like to buy a building, perhaps even build one? Who will look after the building’s maintenance – will it be you, a member of your staff, a supplier commissioned to take care of facility management or a landlord?
A financial adviser can explain how the costs involved could impact on your projected overheads, which is important to consider in advance of making a commitment to any property. When you understand the budgets involved, a commercial property specialist can help you find the right premises for your business. Find an IFA or financial adviser here.
Questions you might like to ask your IFA…
- What are the implications on using part of my home as my working premises?
- Could it be financially beneficial to rent, rather than buy commercial premises?
- If I rent a property, how will this affect my cashflow if I’d like to buy in the future?