New Business - Need advice!

[DavidJohn]

Hi all,

Firstly - thank you for taking the time to read my post.

I am in the planning stages of opening a coffee shop. Hospitality, and coffee in particular, is my passion and something I have very good experience in. I have my vision for what the shop will look like, what products we sell (beyond coffee), opening hours, staffing, etc etc. The things I need help with are mainly property related - something I don't have experience in.

I have been looking for locations to rent - in the city (London). I was expecting to find places that require 3-12 months rent in advance, but instead most places seam to charge a 'premium' which is quite large - the biggest cost of setup. Is this standard across all locations in the city? What happens if I pay this premium, then 5 years later the lease runs out - will I be able to re-sign a lease, or am I at the whim of the landlord? How does this work exactly? Also, who owns the furniture etc in the shop? And if any work needs to be done, is this something I would pay for or negotiate with landlord?

Other than advice here, where can I engage a professional for this information?

Any info in regards to this would be greatly appreciated - I'll stop the post here so it doesn't go on too long!

Thanks in advance for any help.

Best regards,
David

 

[Stuart Bailey]

David may I suggest you follow this link to my website which gives advice about heads of terms. This should help you drop me an email if you have any further enquiries.
http://www.thomasguise.co.uk/site/w...9/Thomas-Guise-Commercial-Premises-eguide.pdf

 

[uksme]

Have you looked at buying an existing coffee shop? Daltons Business lists nearly 200 cafés for sale in London. You might find an opportunity to take on a business that is already taking money, and then customise the business to suit your ambitions after you have hit the ground running.

There is often a premium payable if you want to take on a commercial lease. If you are looking for professional advice on how much rent, premiums etc. you should pay, your first port of call should be to find a member of the RICS, or the Royal Institution of Chartered Surveyors. You can search their members directory here. You should also consult a solicitor before signing any long-term commercial contracts.

Hope this helps!

 

[DavidJohn]

Hi guys - thank you both.