Start up business property...

[spamalot]

I'm in the process of starting up my business and am looking at property.

I only need a small office to sit around 10 employees at most. I have come across a few problems.

The cheapest place in my area I have found to rent from is the local counsel. However they require you to take out a three year lease. I have questions regarding this-

What happens if I want to move to a bigger office in that time?

What happens if we fold (after all no business is a cert) and can't make payments? It says "If the lease is taken in the name of a limited company the Council will require a personal guarantor" so I would be stuck having to pay the remaining balance?

All this makes renting an office for an infant company very hard. Anyone of you knowledgeable people have any advice?

Thanks, Spamalot

 

[estwig]

That does sound harsh, directors guarantee is a bit of a p*ss take, have you tried talking to them about it they may be desperate to let??

Subcontract/outsource everything and work from home??

 

[holidayinyourpocket]

Have a good hunt around. You'll be surprised how many offices you can get on one month terms. I've used Business in Focus in the past and know that Business Eye also has accommodation.

 

[spamalot]

Have a good hunt around. You'll be surprised how many offices you can get on one month terms. I've used Business in Focus in the past and know that Business Eye also has accommodation.

Thanks, there is hope then.

Anyone got information on simular agnecies in the Cambridge area?

 

[Interconnect IT]

We got an office on one month terms from Urban Splash. Not the best deal ever, but it's flexible - which is required for a company that's changing and growing.

But between us and two companies we work with we spend £15k a year on office space, which would let us lease a very very nice unit on an annual deal. We've considered lumping together, but that's dangerously close to merger territory

 

[MaverickJGR]

Many landlords will accept 3 months rent as a deposit instead of a personal guarantee. There are many flexible office schemes, but you will have to pay a higher price for these as they take the risk of low occupancy. Where are you?

 

[spamalot]

Many landlords will accept 3 months rent as a deposit instead of a personal guarantee. There are many flexible office schemes, but you will have to pay a higher price for these as they take the risk of low occupancy. Where are you?

Cambridge.

Found these lot (cant post a link as I havent had enough posts, citibase) looks good but expensive.

 

[matt_15]

Is it a neccessity to buy an office? Isn't that just going to pile up your overheads?

 

[noidea]

I'm in the process of starting up my business and am looking at property.

I only need a small office to sit around 10 employees at most. I have come across a few problems.

The cheapest place in my area I have found to rent from is the local counsel. However they require you to take out a three year lease. I have questions regarding this-

What happens if I want to move to a bigger office in that time?

What happens if we fold (after all no business is a cert) and can't make payments? It says "If the lease is taken in the name of a limited company the Council will require a personal guarantor" so I would be stuck having to pay the remaining balance?

All this makes renting an office for an infant company very hard. Anyone of you knowledgeable people have any advice?

Thanks, Spamalot

Most leases have a get out clause, so you can terminate the clause early - short term ones may not. You may have to give a few months notice and pay a fee. This all depends on the lease.

If your limited company hits the wall then don't worry, the lease would end, they would immediately be able to re-lease it.

Personal guarantee? From a council?? That's dreadful. I say avoid it.

Think long term - remember more flexible leases (i.e. month at a time etc.) cost more and also makes your business location less secure than if you had a longer lease. Longer leases are better as you can get a more affordable deal, however, like you mentioned make sure there is a way out so you can expand by moving into a bigger office.

If the lease allows you to sub-lease this would allow you to sublease your old office out while you use your new one however hardly any offices have a sublease ability however depends on whether its specifically an office environment such as serviced one at a business park or a building that is being used as an office but could be used for other uses if fitted out and had planning permission for their usage.

 

[noidea]

^ should say terminate the lease!

 

[redyork]

I think the messege is clear, there are plenty of office units available on flexible terms, start afresh and look again. The commercial lettings sector has thousands of empty units throughout teh UK so you shoudl get a very good deal if you demand it. A three year lease is not something I would personally look at when starting a new venture but maybe that's my cautious nature. When I set up my firm I initially took a 12 month lease and managed to get a three month rent free period as an introductory deal. Also remember to register for small business rates relief, will save you 50% providing you have just the one premisis. Good luck.

Jamie

 

[spamalot]

Thanks for the help guys.

 

[RichardWilsdon]

Hey,

If you are looking for something more flexible, I run a portable building (cabin) company.

We can tailor the unit to your specification and rent for as long (or short) as you want!

We have a number of units available in all shapes and sizes.

Let me know if your interested and good luck with the venture.

Thanks

Richard

 

[CISK]

I'm in the process of starting up my business and am looking at property.

I only need a small office to sit around 10 employees at most. I have come across a few problems.

The cheapest place in my area I have found to rent from is the local counsel. However they require you to take out a three year lease. I have questions regarding this-

What happens if I want to move to a bigger office in that time?

What happens if we fold (after all no business is a cert) and can't make payments? It says "If the lease is taken in the name of a limited company the Council will require a personal guarantor" so I would be stuck having to pay the remaining balance?

All this makes renting an office for an infant company very hard. Anyone of you knowledgeable people have any advice?

Thanks, Spamalot

Spamalot - there are lots of companies that do 1- 3 month leases, for example: MWB,Citibase, Regus. The offices are good and with these companies it is easy to get started.
However their charges for postage, diverting calls etc are expensive - but they are flexible.
http://www.tastees.info

 

[gk141054]

Hi Spamalot,

I work for United Business Centres and we have serviced offices all over the country which would have been perfect for you as they would be on a flexible lease. Also, if you grew your business you could easily move to bigger offices immediately.

Unfortunately we don't have a centre in Cambridge at the moment, only Stansted Airport and Milton Keynes.

Check out out website though for details of what you should be able to get...

www.unitedbusinesscentres.com

 

[spamalot]

Could anyone give me some idea on the rents that these flexi places charge? I would be looking for small place to fit around 5 people. A healthy internet line to run VOIP in essential, I assume that’s possible?

High charges for answering calls and mail isn't a problem as we wouldn't be having any.

Thanks

 

[onlinetravelservices]

I have just taken on a 2 person office from our local council on a 2 year lease, however, we are able to be released from this with one months notice. They haven't asked for any personal guarantees either.
I would suggest you look around.