What are the expenses for business place?

Discussion in 'Ecommerce Forum' started by apricot, Nov 27, 2020.

  1. apricot

    apricot UKBF Regular Free Member

    423 41
    Hi,

    I found a rental warehouse from my council but I am struggling to find out what would be the expenses for a ecommerce warehouse. Council has been not been great help so far so I was wondering if anyone can help me here.

    So there is
    - Rent
    - Business rate
    - Service charge
    - Council tax
    - Electric & gas
    - Internet

    1- What is Business rate?
    2- Are they any other expenses addition to above costs?
    3 - Is it possible to negotiate with council on rent?

    Thank you in advance
     
    Posted: Nov 27, 2020 By: apricot Member since: Apr 7, 2012
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    27,396 3,363
    1 - based on rateable value. Can, for cheap places, be zero if that is your sole commercial property. Register with the council and they'll send you appropriate bill. Which may be 0.00
    2 - rubbish removal. Businesses do not get rubbish taken as standard like the public do. You pay the council a monthly fee or pay another company (can be cheaper than council) and they give you a bin and dates it will be emptied.

    How do you feel about security? An alarm, maybe a response from a company? Better door etc?
    Don't forget fire safety. Equipment, perhaps some alarms?

    You don't have council tax. The business pays rates - the business version of the public's council tax. Or doesn't pay the rates - small facilities may well not be payable anyway.

    3 - unlikely. They do tend to be pretty low rates compared to some private landlords.
     
    Posted: Nov 27, 2020 By: Mr D Member since: Feb 12, 2017
    #2
  3. apricot

    apricot UKBF Regular Free Member

    423 41
    Thank you so much Mr. D. These are extremelly helpful

    Regarding security, there is a reception with security cameras, I hope they'll be enough. If not, i may get my own security system.
     
    Posted: Nov 27, 2020 By: apricot Member since: Apr 7, 2012
    #3
  4. Mr D

    Mr D UKBF Legend Free Member

    27,396 3,363
    The warehouse we had, we had to factor people coming in via the main door or the cargo door.
    Or through the walls from units either side.
    We ended up not getting a security firm, just setting pallets against the walls.
     
    Posted: Nov 27, 2020 By: Mr D Member since: Feb 12, 2017
    #4
  5. Frank the Insurance guy

    Frank the Insurance guy UKBF Regular Full Member

    197 39
    Insurance costs

    Security costs could be substantial depending on what you are storing/selling - your Insurance company may require a high-level security system depending on what you have and the total value there at any one time.
     
    Posted: Nov 30, 2020 By: Frank the Insurance guy Member since: Oct 28, 2020
    #5
  6. Vin Gupta

    Vin Gupta UKBF Contributor Free Member

    43 5
    Business rates are one the biggest exxpenses that many small businesses face. There is business rates relief for small properties (rateable value of less than £12,000). So I would definitely take a look at what business rates you would need to pay on the property
     
    Posted: Nov 30, 2020 By: Vin Gupta Member since: Nov 23, 2020
    #6
  7. Alison Moore

    Alison Moore UKBF Enthusiast Full Member

    734 161
    Don't forget about insurance too that can often be pretty hefty depending on the type of business you're in.
     
    Posted: Dec 1, 2020 By: Alison Moore Member since: Aug 4, 2016
    #7