1. Location – Check zoning
This is becoming more important, not only from a point of view of running the business from the best place, but also in relation to where Council will allow your business to operate.
The district plan specifies which activities are allowed to take place where by deeming them either, permitted, controlled, restricted discretionary, discretionary, non-complying or a prohibited activity. As an example, a transport depot is a non-complying activity in the central city zone, however, in an industrial zone it is a permitted activity.
To find out more about the district plan and to check on whether your business complies, a good place to start is to speak with the duty planner at council or refer to the district plan itself.
2. Budget – what does it need to include?
Incorrect budgeting can be a major roadblock to success. We all ideally would like to have the best looking, modern, fit for purpose business premises. That is fine, if you have an open ended cheque book on hand. When working out your budget for your business premises you need to take into account an overall spend per year which will include; rent, outgoings and car parks (see more information in the next point).
Most rents are deemed ‘net rents’ which mean outgoings are paid on top of this rental figure. Outgoings include items like; rates, insurance, body corporate, building warrant of fitness costs etc. Note: you will still pay for your consumables such as electricity and internet on top of this.
When looking for a premises you need to consider if the asking rental is $40,000 per annum plus GST and Outgoings, what is the total cost going to be for your business? Outgoings may be another $10,000 per annum plus GST, therefore making the total cost to your business at least $50,000 per annum plus GST.
3. Car Parking
Everyone wants a car park! Hamilton is a great place to live, and one of the reasons we love it is because it is so easy to get around and we don’t have the traffic problems in comparison with Auckland. Driving to and from work is great, but you do need to take into account your staff and where they will park at your new premises.
How many of your staff need to park on-site? Are they coming and going throughout the day, or do they arrive at 9am and leave at 5pm? Staff that are there for most of the day can be parked off-site if need be. Work out how many staff you have (including yourself) that absolutely need to be parked on-site.
You also need to check the district plan and ensure that there are not parking requirements for your specific activity in the location you are in. You can do so here: http://www.hamilton.govt.nz/our-council/council-publications/districtplans/PODP/Pages/default.aspx and look for Volume 2 Appendix 15.
If your business is based in the CBD you will find that car parks are usually on top of the rental. There are some premises which you can get car parks included in the rental, however, it is likely you are going to have to add onto your budget.
Parking generally ranges from $20-$50 per week plus GST per park in the CBD. If you need 10 car parks for your premises then you need to budget an extra $18,200 per annum plus GST (worked out as $35 per week each park).
Have a serious think about how many car parks you must have, and how many staff you could get to park off-site or potentially find a location where public transport can be utilised. This can reduce your overall yearly spend substantially and put you into a better premises for your business.
4. Profile
Pay for profile. You would be surprised as to how much business you can generate from having profile. It may not be walk in’s off the street, but it is about being top of mind with your customers. If you can select a premises that is going to allow you to have signage or even better naming rights for the building, take it and run!
Billboards in high profile locations can cost tens of thousands of dollars a year to advertise on. If you can find a location that will give you profile to the public it is worthwhile considering moving some advertising budget for the year to the rental budget in order to pay for that profile.
Having great profile can give off great impressions for your business. Many miss the opportunity of utilising the advertising space they have right on their door step and pay for it to go elsewhere.
5. Efficiency
Will these premises be efficient for your business use? Can you get away with open plan office or do you need separate offices? Open office means you can use the space a lot more effectively, but is it going to provide the best work environment for your staff?
Look out for no-mans-land in your plans. Is there space in the premises that is wasted because no one can sit there, it can’t be used for storage or warehouse space? Take into account a large reception area, do you really need it?
Making the most of the space you have makes a difference for your staff and also makes efficient use of your budget.
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