If there is one thing that can be said for the British economy, it is that it continues to rebound aggressively from hardship and austerity. The buy-to-let property sector has served as a prime example of this recently, with the level of demand among investors rising by 30% between June and September. This came after the slum that ensued following the introduction of more stringent tax regulations within the market, as investors remained calm and simply altered their strategies accordingly.
A similar trend has been noted in the commercial property sector, which saw a considerable downturn in the wake of the EU referendum vote in June. While double-digit returns in this market may have become a thing of the past, however, the sector has managed to consolidate growth during recent weeks and fears for its long-term performance appear to be overblown.
The Challenge Facing New Businesses and how they can be Overcome
Of course, the robust nature of the UK economy is not likely to provide much consolation to fledgling businesses, particularly when they are considering expanding and moving into their first, commercial property. After all, this is a challenging enough exercise at the best of times, as while it remains a key indicator of growth it also incurs significant costs that must be sustained by an increased turnover. These costs can seem prohibitive in a volatile economic climate, forcing many to shelve their plans for the foreseeable future.
This is a false economy, and one that can ultimately undermine your future business growth (particularly as the decision to trigger Article 50 by March next year will lead to even greater uncertainty). Instead, you would be far better served by tailoring your growth plans in line with the following considerations, ensuring that you organically expand your business without placing its near-term future at risk: –
Your Budget and the Cost of Commercial Property
Let’s start with the basics, as price is arguably the most important consideration when you’re selecting a business premises.
Before you even start to look and a potential property, you have to ensure that you can afford it. That’s why you must go through your business’s accounts thoroughly, taking into account all of your incomings and outgoings. Even though your growth plans have most likely been inspired by an increased demand for your services, you will need to translate this into a financial figure before you calculate your budget and search for premises.
This way, you’ll be able to work out exactly what you can afford. You don’t want to stretch your money too far, but you also need room to grow. Work out exactly what you can afford before you look at anything else.
After price, you need to find a location that suits your needs. You may be priced out of certain locations based on price, but find a site that provides you the best ‘bang for your buck’. After all, if you can be successful at this site, you won’t be priced out of many places for long.
Select a location that suits you. So, consider what’s more important:
- Transport links
- Public transport links
- Views and scenery
- Local housing
- The position of your competitors
This way you’ll focus on a location that suits you and you’ll have criteria you can grade a property by.
Finally, remember that the outside of your premises could be the first thing anybody sees or knows about your business – ensure that first impression counts.
Ensure you select a property that compliments your business, its brand values and how you want your business to be seen. You’ll never regret making a great first impression. After all, it lasts a lifetime, right?
Where Should I Look?
There are numerous places that you can look to find a business premises. It’s a completely different type of property to a family home, but there’s no reason why you can’t approach the buying process in the same way.
Much like you’d look around online for a residential property, you should do the same with commercial properties. After all, most property searches can be done online, too. This way, you can get all the information you need on a premises without leaving your office.
Then you can just visit the properties that you think match off of your criteria. Or, if your online search is fruitless, you can take your search to the high street.
These considerations can help you to strike the ideal balance in a challenging climate, as you drive your businesses growth in line with demand without compromising on your bottom line expense. Such an outlook can afford you a competitive advantage in the current economy, as it allows your venture to expand while others consolidate and bide their time.