Industry sector: Retail and wholesale

Electrical 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.

You might need room for some or all of the following in your business premises:

  • a showroom and product demonstration area
  • space for storing stock
  • a workshop
  • staff areas and facilities
  • office space

Your premises should be well positioned to attract passers-by. As a general rule, the busier the location, the more expensive shop premises will be - you'll probably need to find a balance between affordability and suitability.

Think carefully about security - the types of goods that you will be stocking are very attractive to thieves, including 'ram raiders'.

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

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