1. Overview

Your business premises should enable you to operate efficiently without excessive costs. It's essential to avoid being tied to premises that may not suit your future needs. Different options suit different businesses. By considering all relevant factors, including legal issues, you can identify suitable premises that meet the needs of your business, customers, and staff.

2. Specifying Your Premises Requirements

Create a list of your premises requirements to start your search. This list may include:

- Size and layout of the premises: Consider the square footage, layout, and natural lighting required for your business operations.
- Structure and appearance: Think about the internal and external structure and appearance of the premises, including the condition of the building, parking facilities, and accessibility.
- Special structural requirements: If your business requires special structural features, such as high ceilings, loading docks, or cranes, ensure that the premises can accommodate these needs.
- Facilities and comfort for employees and visitors: Consider the amenities required for employees and visitors, including lighting, toilets, kitchen facilities, and parking.
- Utilities: Ensure that the premises have the necessary utilities, such as power, water, and drainage, and consider any special requirements, such as three-phase electricity.
- Permission and planning: Verify that the premises have the necessary planning permission for your type of business and comply with local zoning regulations.
- Access and parking: Ensure that the premises have adequate access and parking facilities for deliveries, customers, and employees, including disabled customers.
- Flexibility: Consider the flexibility to alter or expand the premises as your business grows.
- Long-term business plans: Think about your long-term business plans and how the premises will support your growth and development.

Your choice of premises will also depend on your budget. Costs may include:

- Initial purchase costs: Consider the initial purchase costs, including legal costs, stamp duty, and registration fees.
- Initial alterations and fitting out: Think about the costs of initial alterations, fitting out, and decoration to make the premises suitable for your business.
- Ongoing rent and service charges: Consider the ongoing rent and service charges, including utilities, maintenance, and repairs.
- Business rates: Verify the business rates applicable to the premises and ensure that you understand the calculation and payment process.
- Continuing maintenance and repairs: Think about the ongoing maintenance and repair costs to ensure that the premises remain in good condition.
- Building and contents insurance: Consider the insurance costs to protect your business assets and premises.

3. Choosing the Right Location

Factors to consider when choosing a location include:

- Level of passing trade: Consider the level of foot traffic and passing trade in the area to determine if it's suitable for your business.
- Number of competitors: Assess the number of competitors in the area and determine if the location is saturated or if there's room for your business.
- Transport links and parking: Evaluate the transport links and parking facilities in the area to ensure that they meet the needs of your employees, customers, and suppliers.
- Delivery restrictions: Check if there are any delivery restrictions in the area that could impact your business operations.
- Congestion charges: Verify if there are any congestion charges or tolls in the area that could add to your business costs.
- Planning restrictions: Ensure that you understand the planning restrictions in the area and that your business complies with local zoning regulations.
- Local authority charges: Verify the local authority charges for services such as waste collection and ensure that you understand the costs and payment process.
- Business rates: Check the business rates applicable to the premises and ensure that you understand the calculation and payment process.
- Local amenities: Evaluate the local amenities, such as restaurants, cafes, and shops, to determine if they meet the needs of your employees and customers.
- Image of the area: Consider the image of the area and how it may impact your business reputation and brand.

Location has a significant impact on cost. If you need premises in a prime location, the extra costs may be justified.

4. Legal Considerations

If you own or occupy business premises, you must understand the legal obligations and restrictions that affect you. For example:

- Planning permission: Verify that the premises have the necessary planning permission for your type of business and comply with local zoning regulations.
- Building regulations: Ensure that the premises comply with building regulations, including fire safety, accessibility, and health and safety.
- Health and safety: You are responsible for the health and safety of employees and visitors, so ensure that the premises meet the necessary health and safety standards.
- Employment law: Comply with employment law, including providing a safe working environment, fair wages,
- Lease or rental agreement: Understand the terms of your lease or rental agreement, including the duration, rent, and any restrictions or obligations.
- Stamp duty and registration: Pay stamp duty and register your lease or rental agreement as required by law.
- Business rates: Verify the business rates applicable to the premises and ensure that you understand the calculation and payment process.
- Insurance: Consider insurance options to protect your business assets and premises.
- Compliance with laws and regulations: Ensure that your business complies with all relevant laws and regulations, including tax laws, labor laws, and environmental laws.

5. Searching for Premises

To find the right premises for your business, follow these steps:

- Define your requirements: Create a list of your premises requirements, including size, location, and amenities.
- Research locations: Research different locations and evaluate their suitability for your business.
- Contact estate agents and surveyors: Contact estate agents and surveyors who specialize in commercial properties to inquire about available premises.
- Search online: Search online for available commercial properties and premises.
- Network with other businesses: Network with other businesses and ask for referrals or recommendations.
- Inspect premises: Inspect potential premises to evaluate their condition, layout, and suitability for your business.

6. Evaluating Premises

When evaluating premises, consider the following factors:

- Condition and age of the property: Evaluate the condition and age of the property to determine if it meets your business needs.
- Location and accessibility: Assess the location and accessibility of the premises to determine if they are convenient for your employees, customers, and suppliers.
- Size and layout: Evaluate the size and layout of the premises to determine if they meet your business needs.
- Amenities and services: Assess the amenities and services available in the premises, such as parking, lighting, and security.
- Cost and affordability: Evaluate the cost and affordability of the premises, including rent, utilities, and maintenance costs.
- Flexibility and expansion options: Assess the flexibility and expansion options available in the premises to determine if they can accommodate your business growth.

7. Negotiating a Lease or Rental Agreement

When negotiating a lease or rental agreement, consider the following:

- Rent and payment terms: Negotiate the rent and payment terms to ensure they are fair and reasonable.
- Lease duration and renewal options: Negotiate the lease duration and renewal options to ensure they meet your business needs.
- Maintenance and repair responsibilities: Clarify the maintenance and repair responsibilities to ensure you understand your obligations.
- Insurance and liability: Negotiate the insurance and liability terms to ensure you are protected in case of accidents or damages.
- Termination and exit clauses: Negotiate the termination and exit clauses to ensure you have the flexibility to exit the agreement if needed.

By following these steps and considering these factors, you can find the right premises for your business and negotiate a fair and reasonable lease or rental agreement.

References:

- The Indian Contract Act, 1872
- The Transfer of Property Act, 1882
- The Rent Control Act, 1948 (applicable in certain states)
- The Model Tenancy Act, 2019 (applicable in certain states)
- The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
- The Factories Act, 1948