Business Premises: Every Question Answered
When your business reaches a certain size, it’s natural to begin to wonder about the future.
For many businesses, this means exploring the possibility of business premises for the first time. If you started your business from your spare room it’s obvious that, to expand, you’re going to need a professional facility to move your operation into.
However, there are many questions surrounding business premises that tend to trouble entrepreneurs. If you’re at the point where you’re starting to wonder about your own premises, then you have likely asked yourself the questions below. Read through the answers to the most common questions that entrepreneurs have and, hopefully, you should be able to make a fully educated decision about what’s right for your company.
Question: Do I Have To Buy Premises?
No. Many businesses rent their premises, so there is no requirement for you to buy if you don’t wish to do so.
Question: Is It a Waste Of Money To Rent Premises?
To an extent renting – be it for business purposes or just for your personal living situation – is always something of a waste of money. You are ploughing funds into something that does not give you an asset, and cannot pay back your investment over time. So in a way, yes, renting is a waste of money.
If you have capital to consider buying or building premises, then this might be the best choice for you – especially the latter option. Building your own premises is complicated, as you have to negotiate the world of architectural plans, crawler crane hire, and environmental protections, but it’s a world worth adjusting to. If you build your own premises, you can be confident that the specifications will be exactly what your company needs, which will help the smooth running of your company in the future.
Question: Is Tax On Business Premises Different?
Yes. A building that is used for business is taxed differently compared to running a business from your residential property. You will need to contact your local authority to ascertain exactly what you may be expected to pay.
Question: Does a Digital Company Need Physical Premises?
If your business exists entirely online – for example, you are a digital marketer or run a dropshipping business — then this is an interesting question. Ultimately, it is best answered by deciding what you need a premises for. If you just think you need premises as that’s what businesses have, then that’s not a particularly good reason. If you think you need premises as you need to hire staff or meet your business goals, then you can be confident you’re considering the move for the right reasons.
Question: How Can I Save Money On My Business Premises?
The most important thing to remember is to take your time; there’s no rush. It’s more important you choose the right premises (be it bought, built or rented) than just finding any premises. So take your time and don’t be pushed into a bidding war. The right premises for you are out there, at the right price, if you can wait.
Hopefully, you now have a better idea of the reality of transitioning your business into physical premises. Good luck.