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Should i get a unit?
Hi Guy’s
Just wanted your advice , there is a unit that is for rent close to me easy terms and on the road front with lots of passing traffic. Office space and double front doors. rent only £60 per week not sure on rates.
This would be a big jump up and to be honest i am a little worried about making the move.
With being in such a good position i’m sure it would work, but its always a risk.
I guess most of you will have been the this situation before and i would like your opinion
Cheers
Lee
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40 Replies
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For £60 a week definitively!!
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£60 a week is the good bit. Then rates, electric, refuse collection, advertising, bog roll… – all going to add up to say a £150 to £200 a week total. (At a guess).
If you are already on the verge of bursting for space & workload then YES, good idea if you can coincide with the release of the new yellow pages to give a higher profile to your business…a sort of ‘shot in the arm’ booster.
Making a speculative move based on what might happen has seen many, many smaller businesses crash & burn unless there is money sitting there for the lean times. ie. the first year!
In my opinion, it takes around 2-3 years to become firmly established in a new location & get a solid customer base & reputation. It can be a bit ‘tricky’ to get on the map.
As this is effectively your first year, think very, very carefully before diving into what may seem a fabulous adventure.
If you take a year lease you might just be getting established & the landlord wants you out…take a 5 year one…and if it flops – you could be stuck with a BIG, ‘sell your house’ type bill to get out of the contract. Sort out the terms of the release / renewal FIRST.If you can do say, a full transit van a week – then your ‘rent’ is paid for. The next one will pay for your materials to keep you running and a bit of profit…then the tax man 👿 …then your wages.
Dave
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Go for it Lee otherwise, six months down the line, you may need that space and it just won’t be there. It will also give you that "I’m a professional" look and this alone will bring in the business.
Dave
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Dave your right i’m not bursting with work , but thought the location would bring more work and like you say a good a week would cover me.
Lee
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lee, at the end of the day you are the only one who can make that decision no matter what others have to say about it and you have to be 100% sure its the right move and 100% committed to making it work.
If you read the boards you will know what happened to me but if you avoid some of the mistakes I made and don’t get ill then it should turn out to be a very good move and the first step in taking your business to the next level.
What Dave has said is very valid but I disagree with him about the time it will take you to get established. You are not moving very far if the unit is close so you are not starting from fresh. You should already have built up a small customer database and should already known to quite a few businesses which should mean that you are moving in to a unit with some work to do.
£60 a week sounds pretty cheap for a unit but you will need to be very careful about lease terms, if you sign a full repairing lease and the building needs a new roof then straight away you have a huge bill for repair so it is important to ensure you get someone who knows to look over the terms, also a longer lease with the option to get out after the first year may protect you a bit from getting stuck and losing everything. If you have a local enterprise centre near you I would advise contacting them as they will be able to give you lots of help and advice and it is free. -
Where are you located Lee?
Peter -
some great advice for you there mate, epsecially david rogers post, great stuff.
I bought my new house with an an old stables/washhouse attached which is in effect a double garage size unit, when my missus saw the house she fell in love with it, when I saw the potential workspace I was even more excited!!! i can fit my cadet plus, 760 cutter, 2 pcs 16ft x 4ft bench and a fair bit more.Its a great size but to be honest I’m already a bit worried I might need to get somewhere bigger.
Our mortgage went up a fair bit with the move but so long as the work comes in its well worth it.
At £60 my advice is to go for it but try and get (in the early stages) very loose terms where your not tied in too much. Its the old story though, once you have this place you can be sure you will up your marketing so you can sleep at night……you have to take these chances in life mate, this could be the stepping stone to really building your future.
As david says work out all the other costs, insurnace, broadband (itll be near double what residential cost is), phone, heating, etc etc so it soon add up.
go for it.
regards,
graeme -
quote martin:…….What Dave has said is very valid but I disagree with him about the time it will take you to get established. You are not moving very far if the unit is close so you are not starting from fresh. You should already have built up a small customer database and should already known to quite a few businesses which should mean that you are moving in to a unit with some work to do.
Hi Martin. I wasn’t really meaning it takes a couple of years to get ‘on your feet’ – anybody with enough drive can achieve that in 6 months or so – so Lee already has a head start. What I meant was that it take a few years to get enough ‘regulars’ under your belt and be ‘not the new boy that’s just started up’ to be firmly footed with a regular income.
The first year can be a tough one for many businesses, juggling income & outgoings etc. Well, you know – you did it!
Lee (hope I’m not overstepping the mark) is just starting out by all accounts, getting a name for himself. Until the trickle becomes a steadier stream I am simply urging some caution, not from personal experience – but from seeing many enthusiastic young entrepreneurs stress themselves out during the first six months to year when they hit a quiet patch.
How quickly a business is established in the town / marketplace depends largely on how it’s ‘marketed’. With slow steady ‘word of mouths’ it takes a couple of years (like I did) and you get an incredibly loyal customer base, but by hard advertising & pro-active selling it can be done a LOT quicker. If Lee (or anybody) can spend the time to promote their business from their new location and back it up with quality work it will have every chance to succeed.
Dave
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Hi Guy’s
Thanks for all the help, i will have to give it some thought.Peter i live near to wolverhampton and Shropshire
Lee
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On the whole I would say 60 quid a week is a bargain. But as Dave says you have to take into account all the other overheads.
I know it’s boring, but if you do a business plan based on the work you already do, then put lets say a 10% increase in sales from the unit in the first 2 months you should have a clearer view on your decision.
I was worried when I first moved in here. Still am sometimes! But the rent, rates and wages are all upto date. A supplier told me on friday last week that he thinks we now have the monopoly around here now due to our location and the kit we have.
You’re not the only one who worries about taking a risk, we all have done and still do. What the hell, go for it. It’s the only way you’ll find out mate! -
David, I agree 100% with what you have said, it is very sound advice and maybe I was assuming that Lee was further on with his business than he actually is.
I know he has been on the boards for a little while so I was assuming he had already started to build a customer base and had done some marketing so other businesses will know he exists even if they haven’t used his services. By taking a unit on a busy road with a constant stream of traffic passing will not only attract new customers who have never heard of him but those people who know the business name but have never seen any premises. As you know it all helps and the fact that he already has local customers who are happy with his work helps with the reputation. The flow of traffic past the unit every day is going to be worth a lot in advertising terms alone, especially if it is done properly.
Lee, my first port of call as I have said would be to see if there is a local enterprise centre close by as the help they can give is based on local business which is much better than just trying to go by general UK figures. They will be able to help with a business plan, advice on Leasing, courses available for things like Tax, marketing etc….. in fact just about everything you need to know about running a business.
If it is any help Lee I would still seriously think about taking another unit when I am well enough but this time round I would make sure I had the right sort of insurance in place so that if I were unable to work all the bills that I had to pay would be covered and it would also give me some sort of income until I was able to work again.
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Lee
I agree with David that £60 is just the start of it and that total costs of £200 / £250 are likely but if it’s on a busy road then you are investing in marketing.
How much would an advert in the local paper cost? And people only see it when they are browsing. A good location, like a well signed van, is a permanent advert for your business.
So, only you know the financial position of your business but it sounds like a good opportunity.
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Thanks for all the comments but there seems to be the idea that i already have a good customer base when in truth i have only done a handful of jobs although i have done a lot of marketing.
I just though the unit and its location would give me a real chance to get some customers and grow the business.
Not only does it get passing traffic but the at times of the day the traffic is queued up so there would be cars sitting outside the front door.Lee
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I saw go with the unit when comfortable in business, but please use blinds and not curtains for the unit :lol1:
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Lee, I think that was only me, OK I hold my hands up I am guilty as charged. I apologies.
There is no doubt that it will increase the amount of business that you get especially if the traffic is busy and sometimes at a standstill, but it has to increase your business by at least the extra cost almost straight away unless you have some money put aside or are willing to take on a loan. As Dave has said you need to make provision for the times when it is quiet.
I would say it was a risk worth taking from what you have said as it sounds like a very good spot especially in advertising terms but then its not my money thats being invested.
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Lee,
Like I said, I was concerned at first and am more than pleased I took the risk.
Just ask yourself this. If you knew you would lose nothing, would you take the risk? In other words, What have you got to lose?
No one gets anywhere in this life by holding back. Trust your own gut feeling and go for it! Those who fear financial insecurity never go anywhere. -
Just my take on this…
Location isn’t everything. I wouldn’t take on a high street shop for instance simply because I do not believe you will get "quality" enquiries as a result. Sign making is primarily a "business to business" occupation. Joe public generaly wants house signs – number plates and stickers – not the sort of thing that results in a lot of repeat business.
If you need space to enable you to produce all your work then go for it. If you’re tempted because you beleive it wil bring in more "quality" enquiries then I would think twice.
Having said that – I started my business nearly 11 years ago from an industrial unit without an existing customer base (I did however have a large "redundancy" cheque that subsidised me for the first couple of years or so).
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quote Phill:Just my take on this…Location isn’t everything. I wouldn’t take on a high street shop for instance simply because I do not believe you will get “quality” enquiries as a result. Sign making is primarily a “business to business” occupation. Joe public generaly wants house signs – number plates and stickers – not the sort of thing that results in a lot of repeat business.
If you need space to enable you to produce all your work then go for it. If you’re tempted because you beleive it wil bring in more “quality” enquiries then I would think twice.
Having said that – I started my business nearly 11 years ago from an industrial unit without an existing customer base (I did however have a large “redundancy” cheque that subsidised me for the first couple of years or so).
I agree with what Phil says – we prefer to target our marketing and aim to win customers that give repeat business and importantly pay on time – we do not seek passing trade from ‘joe public’
As always David Rogers advice is sound – Personally I think I’d work from home as long as possible and consider renting a garage of the local council for storage or as an add on workshop.
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I accept the fact that with Lee will get more inquiries from Joe Public but I think you are missing the point Neil. Any form of long term advertising is all about name recognition and I am sure a lot of genuine business people will be among those passing this unit on a daily basis. That is bound to lead to more genuine inquiries from business people. Phil gets a lot of work from his van, why… because people see it out and about. I do agree that location isn’t everything but it can play an important part and at some stage Lee’s business will reach a level that will either force him to take premises or not develop any further. As I said in my first post only Lee will really know if he can afford to take this on and if he feels he could afford it then it would be a terrific step forward.
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Martin,
I agree that name recognition (or company branding) is vital if you are marketing a business, and we also pay attention to the ‘look’ of our company image on our vehicles, making sure that they are kept clean before turning up outside our customers premises to fit signage. I just don’t personally value the ‘shop front’ for passing trade and feel with good marketing you could easily have your business operating from a more rural location or from home as I am sure most of us did at some point in time. 🙂
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If you have nothing to lose go for it, I pay £100 a week rent plus all the extras, thats a quiet location but if you do good quality work the work should come in to cover the costs. Just get out there and get the work in, its all about marketing in the end, I think it looks better as people can call in to a place of work not your house but that’s just my opinion.
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I agree with the above. Can be very difficult to get far working from home – especially with some larger businesses as they think the quality will be lacking from someone who works from home.
I too am looking for somewhere to run my business from, its not easy and there are a lot of factors to consider. Also if it is a walk in type unit, would this mean employing someone else to take enquiries whilst you are out fitting signs and so on??
I found a good one, but the lease term was 5 years with no option to get out……… plus the rates were high, so it wasnt so good after all.
If it were me, I would definately look into it…….. if you dont, you might regret not finding out more about the unit and its associated costs.
BEST OF LUCK! 😎
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Phil, you make a very good point about some of the bigger companies and these are the sort of people who you really want as customers for repeat work. Not sure if it is just down to quality though, may also be other factors like they don’t think you would be able to cope with any work they gave you or maybe they think you will have disappeared in 6 months time. Doesn’t really matter if they aren’t going to give you the chance to prove yourself anyway.
There are a few other factors about working from home that I don’t personally like having had a unit. I don’t have enough space to work efficiently especially if I have a sign for a shop or something like that to do, I don’t have anywhere under cover to do vehicle work which to me is a major problem. A customer needs to know that their van will be off the road on a certain day for a certain period of time and as we get a lot of rain up here it is difficult to plan jobs like this. I don’t like going to see the customer all the time as it is so time consuming and would prefer the customer came to me but I don’t want lots of people coming to my house. There are other things as well but can’t think of them all at the moment, these are obviously just my personal views and other people may not feel the same way. -
having somewhere undercover is a definate factor for a good unit. I know a mate in the industry who bought a place, and with the high roller shutter access he can get all sorts in there no worries.
Plus with the UK weather it can be annoying on your house drive signing up a van whilst getting wet and your vinyl is going here there and everywhere cos its windy!
On that factor alone, a unit must be worth its money in increased production and fitting time, allowing you to get more done. I just refitted my workshop, and I am still struggling for space……. but as with Lee, unsure as to take the step or not. Apart from that I cant find anywhere local yet! 🙄
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for vehicles I have a great deal going (albeit a family friend) who runs a tyre business. I can use his place after 5pm Mon-Friday or 12-? on Saturday and Sunday.
I give him £25 for small vehicle and £50 for a large van etc. I just factor this into my costs and it so far has been a great arrangement.
Its in a totally covered environment with good access, high roof etc.
Might be worth investigating this with local places which might have such facilities.
cheers
graeme -
Hi Lee
You may just be starting out, but you have shown by your posts that you are serious about your new business, and not just ‘dabbling’.
I took on a unit in a more prominent position, and haven’t looked back. (£50 per week). Business rates will be reduced as this is your 1st small business, and electric etc won’t be huge.
Just make sure, as has been said, that if it does go t*ts up, for any reason, that you can get out easily, without it costing a fortune (although it should be easy enough to sub-let until the end of the term, if necessary.)Go for it, and good luck!
Lorraine
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Hi Lee,
Some great advice here mate, I agree with Dave to be honest, the reason I say this is because we have done/doing it!!
We worked from home for 12 months, but it never really went anywhere, we started by purchasing a cutter on our personal credit card, I don’t normally talk about the details too much but you need to know what can happen.
We had no money at all and never really have, we did one job and that paid for the next job and so on, we got to the stage where we had maybe three days work for one of us, paid ourselves nothing, got rid our cars and sunk everything we had into progressing the business, which wasn’t much.We decided we needed to get a van, we looked very amateur and cowboyish in our old banger and thought a newish van, even though we couldn’t afford it, would pay for itself! We went looking and the van salesman got talking about premises, he showed us a unit he had round the back, it was perfect!!! So you know whats coming, 2 months later we moved in. We instantly got more work through the van sales business next door, just as well as without it, it was looking bleak, remember we couldn’t afford a van nevermind a unit!!
We bought a van as well, as ours eventually gave up the ghost. Luckily we scaped by for a year and the unit just about paid for itself, still not much in the way of wages! We have just started our second year in the unit and have managed to settle down into our payments, but let me tell you we were very nearly finished on more than one occasion.
We do get noticed now but it has taken 12 months for people to realise we are here, we are both young so we have had to compete with people not taking us seriously, now we drive around in a fantastic looking van, we have a great unit that people always comment on and bigger customers have started to accept that we are not a fly by night company, here today gone tomorrow!
What i’m trying to say is if you want something enough you can achieve anything, it’s embarrassing telling you all this as we clearly went about it the wrong way, but we are doing it and we are getting there slowly. So there is an element of taking a risk, but be prepared for things to get much harder if your NOT ready!!
Its a big step, proceed with caution!
Cheers
Aaron.
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Hi Lee,
£60 a week is pretty good for a unit on a main road. Make sure you check what’s included, electricity, water rates, insurance. You’ll be paying a business rate for your phone which is of course higher that your home phone.
I paid £1900 a year rates on a 1400 sqft unit. So, this added almost £160 a month to my outgoings.
Then there’s your insurance which if your unit/shop is classed as retail will be different to commercial.
Factor in wasted time spent with customers coming in, taking up your time and then spending a tenner on a decal for their car.
Be prepared that even if your work dries up your outgoings will still be there.
I know I may be being a little negative here but I think it’s only fair to point these things out.
I remember being in this situation and was very excited about it and couldn’t wait to move in to my own unit. I had though spent 2 1/2 years building up a customer base by getting out there and calling at spray shops, haulage companies etc. that was 20 years ago!
Be careful with signing a lease because you may be stuck with having to fork out for the unit if things don’t work out. On the other hand it can protect you if your landlord wants you out.
Think about some private health care incase your ill or have an accident, I’ve only used mine once in 14 years (touch wood) when i had chicken pox but it’s reassuring to know that you’ll get some money to keep on paying the bills.
Lee, you said double doors, can you get a vehicle in because that I would say should be at the top of your requirements. Is parking available outside for customers?
Anyway, these are only my thoughts, if you feel the time is right go for it, nobody can criticize you for giving it a go. Just don’t be to hasty, i don’t know how long you’ve been in business but it does take a few years to become established.
Good luck Lee
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Well
I went to see the unit again yesterday thought i go at tea time just see how much traffic was about and i got a shock.
When i got there was a sign on the front for a cars place so someone beat me to it.
i think everything happens for a reason and it was not to be.I would just like to thank everyone for the help and comments and i think i will stay like i am for a while and try and build on more customers.
Lee
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a very helpful topic, i am also in the process of looking for a shop at the moment, so very helpful reading to me. cheers guys
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Sorry to hear you missed out on this one Lee. . but like you say in this case maybe it wasn’t meant to be.
I’m pretty much in the same situation as you, actively looking for workspace and have been for the past 6 months. I have come close to signing the paperwork a couple of times, but for various reasons haven’t ! ( mainly workload and the fact that I can’t stop work for a week or so to move ! )
Like has been suggested do a business plan.
This way you’ll be armed with all the information you need when considering possible work spaces. I personally look at workspace from a production point of view first and location second !
In other words how is it going to make my current work easier and allow me to be more productive.
( Take a realistic look at the sort of work you are currently doing ! )I know others have stated disadvantages of operating from shop based premises, but don’t dismiss them. Some of the busiest sign makers in my area are run from shops by the looks of things they are making good money.
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Aaron, I read your post with interest.
It nicely dispels the myth that starting your own business is a route to instant riches and shows that the first few months or years can be long hours and hard work for little reward.
I’m glad that, having stuck it out, yourself and Chris have made a success of it.
Respect.
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I know that feeling…… Just hoping that by sticking to my guns and going with the flow that it will pick up and make money for a change! 🙄
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Lee,
If I remember correctly, the Oxford dictionary defines an "entrepreneur" as " a person, who by risk and initiative, attempts to make profit."
This, basically, should give you your answer! Nothing is for certain – but, bigger risk, bigger POTENTIAL reward. Your character, skill, luck, etc will determine if this pans out. Only one way to find out!
Having a unit (we call it business premises?) can also be a marketing tool. Even just your shopfront should be worth a few pound’s advertising a day.My opinion: Go for it.
P.S. Am I the only tw@t on earth who can quote verbatim from a dictionary, and that after 8 beers, and in my second language? Silly!
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:appl: :2thumbs:
To Aaron & Chris! -
I am just going to work from home, dont see the point in laying out loads of money on a unit when it could be going straight in my pocket. why give it away to people like the landlord bt government to name just some
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quote Jason Cook:I am just going to work from home, dont see the point in laying out loads of money on a unit when it could be going straight in my pocket. why give it away to people like the landlord bt government to name just someIt’s all well and good working from home, but what about the big jobs ? anything over 8×3 has to be done outside my workshop as i just can’t move in there otheewise ! i end up doing big signs and banners on tressles, where do i go if i get even bigger jobs ?
i think sooner or later, if you’re serious enough about making a business work, you need some kind of decent sized premesis, regardless of whether it a big workshop in your garden (and i mean bigger than most could fit in) or commercial,
i’ve been self employed for about 18months now, i’ve made some good money at times, but not enough to give me the confidence to jump into a unit just yet, the lean times can be very lean, things are improving, as are the kind of jobs i’m trusted with, but income is a big factor in whether or not to get a unit,
Aaron and Chris, while they may have gone about it in a non perfect (business wise) way, they are geting there/got there, and well done too ! a good result re the van sales place out front ! a bit of luck thrown in for good measure never hurts !
wish i had the confidence to jump into a unit, but for an only just prominent industrial unit on the big estate here, it’s £10k + rates a year, thats £200 a week before you make a penny for yourself, i reckon i’d do pretty good on the main estate, lots of large and small businesses already there (potential custom) and more being built etc, but it’s no good having a cheap unit tucked around the back of the end of a cul-de-sac on there, it’d need to be on the main thru road, where maximum exposure would be acheived.
as for keeping all the money we make, i wish ! soon be tax return time again!!
quote GERT DU PREEZ:Lee,If I remember correctly, the Oxford dictionary defines an “entrepreneur” as ” a person, who by risk and initiative, attempts to make profit.”
This, basically, should give you your answer! Nothing is for certain – but, bigger risk, bigger POTENTIAL reward. Your character, skill, luck, etc will determine if this pans out. Only one way to find out!
thats about right !!!
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Thanks, for the kind words guys , just happy we could put our spin on the topic.
Cheers
Aaron. 😀
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cool website lads, did you do it yourself? or is it a template?
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I take it your talking to us Harry.
Yeah we did it ourselves, we are pretty clued up on the design side of things as we are both qualified graphic desigers, it’s not perfect and needs updating as the jobs are some of our early work, but it does it’s job for now.
We designed it and our web designer friend put it together for FREE!
Thanks
Aaron
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