17 Jan, 2015
Have you been considering a move to a new business premises, but are unsure of whether now is the right time to do so?
An article from Real Commercial discusses some of the signs that may indicate a move is in your business’ best interests.
Staff overcrowding
If you find that fitting in another employee to your business space is creating a serious problem, then your business may have outgrown its current commercial building.
Employees that are made to work in uncomfortable conditions will unsurprisingly find performing to their maximum potential quite difficult.
A cramped work environment also causes occupational health and safety issues for all staff members, while raising an additional business concern for employers- one which is vital to be addressed immediately.
The surrounding infrastructure and environment has changed for the worse
Your commercial property is important, but another vital factor may be your current premises’ surrounding environment.
If your business is reliant on its location to a busy road, a business hub or proximity to a target demographic than a change in these factors will most likely affect your business’ performance.
For example if other businesses begin to move away from the area, a new road is built which moves traffic from your doorstep or local population drops in the area, then it could be prudent to begin searching for a more promising commercial building.
Productivity and output are affected
Following on from the above point, when productivity and output are affected, then researching your options for a more suitable space is advisable.
This may be a sign that your current building is no longer fit for purpose.
If your business is operationally dependent on a well laid-out floor space, with room for the necessary business activity then a fit for purpose building is the highest priority for maintaining profit.
The article in Real Commercial suggests that if your business begins to lose out on tenders or orders then it is important to consider the impact your workspace is having on your business’ ability to produce orders in both a timely and competitive manner.
Audit your workspace requirements
For such businesses that are reliant on work space for productivity, it is important to take stock of how much space you need, as opposed to how much space you currently occupy.
At this stage, it may be useful to consult professionals in the industry to help you analyse your current commercial building space, such as talking with fit-out specialists who are knowledgeable in your industry’s requirements.
You should next analyse your future requirements, taking into account past business patterns and analysing workflow to make an accurate prediction of future output needs.
Before considering a move, analyse your current commercial premises
Is your current business leasing the most financially viable option for your business, or would buying a property be more financially beneficial?
Contact a financial advisor or accountant and determine the rental repayments compared with loan repayments.
The benefits of owning your own property are attractive. Interest can be claimed on the loan, while another attractive option (where applicable) is purchasing a property through an SMSF and leasing the property back to the company.
Certainly, if you are considering an expensive fit-out of the space you are currently rental property in order to bring the space up to scratch, then investigating your options to buy is a wise idea.
Once in place as an owner occupier, any money you put into the building is a direct investment back into your own business.
Finding a Fit for Purpose building
The space you occupy can determine your business’ continued success. Research your options thoroughly and take measured steps when deciding on a new premises that is fit for purpose and optimises productivity.
For further information please contact Adam at RapidTilt on (08) 9248 5272.
