Which options is best for your
A major decision for you as the business owner is the type of
premises you require and how you will acquire them. This will
depend largely on the available finances and the ownership
structure. The financial option you select should be built into
your long-term business plan. It is wise to seek professional
advice from financial advisers, property consultants and your legal
Things to consider when deciding on the type of premises you
- Should you lease, buy or build?
- What are the pros and cons of each type of occupancy?
- If you're going to lease a building, ensure that a formal lease
agreement or contract of sale exists that is soundly negotiated and
regularly reviewed (if required).
- Investigate finance availability and loan options.
- Compare interest rates offered by financial institutions (your
college or association can often guide you on alliances they have
- Discuss with your accountant the appropriate length of loan and
- Prepare budget forecasts to ensure repayments will be met.
- Who will be responsible for structural maintenance?
- Will you need to renovate/alter the current facilities?
- Discuss with your accountant the pros and cons of having the
premises as an asset.
- Does the building comply with regulations including disability
access, parking and fire safety, etc.?
- Are you compliant with council regulations?