Talking Cents

Renting Commercial Premises

Often small businesses start out as home based businesses and then quickly outgrow the home study or garage. This is when you need to consider renting a commercial space and all that this entails. I’ve outlined a few key matters you must consider before taking the plunge and signing a lease.

• Have you factored in the extra rent costs into your cash flow forecasts to ensure the rent is affordable?
• ALWAYS enlist a solicitor to help you wade through the fine print, especially when it comes to terminations clauses, payment of outgoings and personal guarantees.
• Check with the local council to ensure the chosen location is approved for your type of business.
• Do you have the cash to put down the upfront bank guarantee that is normally required.
• Is the location suitable for you, in terms of parking, access for heavy vehicles if needed and possible extra walk in sales.
• Don’t forget the costs of fitting out what will essentially be a blank canvas in your new premises.

As you can see moving from a home based business to one with a commercial location can involve quite a bit of preparation and negotiation with landlords, councils and solicitors. Be sure that you are 100% confident before signing any agreements and committing your business to what will be a long term financial commitment.

For more information about how we can assist your small business to grow why not give us a call at mas accountants, the original accountants for small business for over fifty years, located in Sydney and Melbourne.