When choosing a location for your business, one of the most important things to consider is the flexibility of the lease they have on the property. Very often companies will sign up to a lease that offers them no flexibility and then grow to the size that the lease allows them. Instead, sign up for a property licence and you’ll see the flexibility on offer greatly increase!
There’s so much to consider when choosing premises for your business. It’s proximity to your customers for example, or if it’s accessible to your staff. Does it offer you the space you need to conduct business? What sort of impression does it give prospective customers?
Often the thing that get’s missed is what potential does it hold for future growth or shrinkage.
When finding a space for a new business, the best thing to do is visit your local business centre. Business centres are ideal for many small businesses because they offer total flexibility. There are no hidden charges, and you can move, expand or contract your business whenever you like.
Business centres offer small businesses a whole range of options. They offer everything from fully serviced offices, to managed workspaces. Whatever your needs, generally a business centre is the ideal location to run a business from.
But one of the key things that allow small businesses their flexibility is the fact that they hold a licence rather than a lease.
What’s the Difference between a Lease and a Licence?
A licence is personal to the occupier, gives the occupier the right to move from their space and is short term. This means that if you hold a licence for your business premises, then you are able to respond to your needs instead of fulfilling those of your landlord.
Benefits of a Licence Over A Lease
A licence is better than a lease for many reasons:
- Flexibility – A licence gives you the freedom to set your own terms, instead of allowing your landlord to set them for you.
- Quicker – A licence allows you to move into the premises quickly, rather than waiting for a lease to be drawn up.
- Cheaper – a licence requires no legal fees.
It’s hard enough to set up a business without worrying about a constricting lease on your property. A licence gives you more breathing space to take the pressure off your business and let you concentrate on doing what you do best!
Be wary about making a long-term commitment to a property that could end up putting extra pressure on you in the long run. In the current financial climate, it’s not advisable to risk a long-term commitment. Imagine if you signed an employment contract for a minimum of five years, without being able to back out of it. You’d be crazy!
If you’re thinking of arranging premises for your businesses, then consider talking to a chartered surveyor. We will be happy to provide you with all the information you need to make an informed decision about lease versus licensing.
If you want to talk to us about property licences, or want to have a chat about building surveys, structural surveys and property surveys, then give us a call today on 0151 486 3437.