Industry sector: Retail and wholesale

Art shop: Rent

Enter in your cash flow forecast the amount of rent you will have to pay for your premises in the months that you will have to pay it.

If you have not yet decided on a particular premises you could contact a local estate agent who handles commercial property to get an idea of how much the rent is likely to be. You should have already given some consideration to the type and location of the business premises that you will require, so they will be able to give you some guidance as to how much you will have to pay.

Bear in mind your premises should be accessible to customers and staff who are disabled.

The cost of retail premises generally depends heavily on how centrally located they are - the more passing trade there is, the more they're likely to cost. As a specialist art supplies shop you may decide that the majority of your customers are likely to be prepared to make an effort to seek out your shop. So you might be able to consider cheaper, less well located premises. This could also apply if you hope to make a significant proportion of your sales on the web.

Your solicitor will help you with the lease agreement but make sure that you are clear about:

  • whether the premises can be used for the purposes you have in mind
  • how frequently the rent will be reviewed
  • how long the lease runs for
  • what you and the landlord are each responsible for
  • the position as regards sub-letting