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Question
I have been trading for 18 months, but my business is based in my home, I am thinking about premises – what are my options?

Answer
It is dependent on your type of business and how much capital is available to you. If you can afford to buy a premises then there are advantages such as; mortgage repayments maybe the same or even cheaper than rent, you could rent out separate rooms as office spare for extra revenue, building assets for your business, more control over the management, repair and design of the building, no fixed term contracts to abide by and if you sell it – the potential profit. But remember this option could tie up capital that might be necessary to invest in your business, it could take time and money to get it how you would like and you are fully responsible for all safety aspects of the building. As with any property purchase there is always a financial risk.

If you do not have spare capital you may want to consider renting or leasing premises. This is a good option and business if your business has grown or you require specific space to more effectively run your business. Remember that you need to check you lease contract carefully to make sure the premises is right for your business and also that you have the location just right. If it is only office space that you require you could reduce your costs by sharing office space, therefore sharing the costs, it is not always necessary to lease a whole premises or unit just for you. To find out more you can chat to your business adviser or contact your local authority / council to see if there are any subsidised premises.

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