Planning for Your Business Premises

Researching your business premises is critical, as unless you intend to operate your business from home, securing premises is likely to be the most significant cost you will have during the start up phase.

Not only could it end up costing you a lot of money, the decisions you make while looking for premises can have a long-term impact on the future viability of your business.

Size

The first criterion to consider is size.

Generally stated in square metres, the size of the property will be determined by your business needs.

Do you need to accommodate people, machines or both?

Does your business model mean that you will need storage space for inventory?

Do you need a loading dock to handle goods coming in and going out?

Do you expect to have a lot of visitors to your business? If so, you might need additional space for a reception area and meeting rooms.

When you are calculating your space needs it is better to over estimate your requirements, than to be conservative, particularly if you have plans to expand or grow the business in the medium to long term.

Location

The choice of location will depend largely on the type of business you are planning to start. A retail business that relies on a high level of foot traffic would need to be located in a busy shopping precinct or in a mall along side other complementary established businesses. A manufacturer might need to be located close to major suppliers. A sandwich shop would need to be within walking distance from a shopping precinct or large office complex.

Zoning

As with the location, the zone in which you seek premises will be related to the type of business you are starting. Typically zoning laws and regulations will limit the type of business that can operate within a specified area.

It is unlikely that a manufacturer would not be able to set up shop in a residential zone, or in a light commercial zone. Common zone categories include residential, commercial, light industrial, semi industrial and heavy industrial.

Cost

The final criterion, and often one of the most critical, is cost. Before you start looking for premises you need to determine how much you can afford to pay.

Could you use a Premises Checklist?

Here it is! Just click on the Premises Checklist link to download a printable copy.

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