Unless you run a home-based business, you’ll likely need to buy or lease business premises.
Each business has different requirements. It's important to consider your business needs and priorities when deciding on the type and location for your business.
1. Decide if you want to buy or lease
When you start or grow your business, you may need to decide whether to buy a commercial property or enter into a commercial lease.
Accountants, solicitors and business advisers can advise whether it's in your best interest to buy or lease your business premises and equipment. An accountant can also advise you on the tax implications of each option.
If you’re considering signing a retail lease, make sure you completely understand and agree with the clauses in the lease.
It's also important to seek financial and legal advice before signing any contract to avoid expensive mistakes that could cost you and your business.
2. Decide on the type of premises
The type of premises you may need will depend on your business type. For example, if you:
- sell products, you may require a retail store
- provide a professional service, you may only need a shared office with access to a private meeting room for client meetings
Business premises include:
- warehouses, manufacturing plants or storage facilities
- retail premises
- home offices for home-based businesses
- shared commercial offices, hubs or co-working spaces
- temporary premises, such as market stalls or pop-up businesses
When choosing business premises, make sure you also consider the future needs of your business as you grow and expand.
3. Choose a location
The location of your business can determine its success. When you choose a location, consider if it’s the right environment for your business.
You may pick a location because:
- your suppliers or distributors are nearby
- the area is known for the products or services you provide
- businesses in the area complement yours
- the cost of buying or leasing are affordable
- the area is a growing business hub with many future opportunities
Tips to choosing a location
- Research different locations – gather demographic information on the area you’re interested in including population, age and income to see if it’s the right market to sell your product or service in.
- Find out about other businesses in the area – other local businesses might complement your business's product or service.
- Research your competitors – find out your competitors locations and the type of premises they use to sell products and services.
- Contact local councils – find out about the area, any future or planned development, zoning, rates and business activity in the region.
- Consider the current and future needs of your business – make sure your marketing plan is current and your chosen location is in line with your business goals and objectives.
4. Changing your premises
If you’ve been in business for a while, you may need to consider moving your business to a location that meets the changes in your business’s needs.
Reasons to move your business
- Customer convenience – If your business relies on strong foot traffic for purchases, like a boutique store or a takeaway food shop, it’s then important for your location to be relevant to your target market. Do some research to help you understand your customers.
- Lower business costs – One option to help you cut costs on rent and increase your profits may be to move your business to a more affordable location.
- More space – Is your business bursting at the seams? Maybe you no longer have enough parking space for your customers? If your business grows, consider relocating your business to a bigger location.