Do you need premises? What are your options?
For your business location, you have the option of buying or renting commercial space, or even working from home.
Other options include sharing an office, or perhaps renting a workstation or meeting room at a nearby business center.
If you're starting out on a small scale, you may be able to make do with a modest space or a less traditional layout.
Here are a few factors to consider when deciding to lease commercial space.
Space: How much space do you really need?
You may dream of an office, store or restaurant with the latest range of equipment; however, you may need to consider less expensive options when you're starting out.
From a financial point of view, it might make more sense to run your business from a kiosk, a cart or your basement, until your business takes off. If your stock, equipment or merchandise doesn't require a lot of storage space, take the opportunity to rent only the space you need.
Online office space calculators will give you a rough idea of the type of premises your business requires.
Rent: What costs are involved?
In many cases, you'll pay a fixed rent that may include some ongoing operating costs, such as Arnona, electricity, internet etc., however, if you operate a retail business or store in a Kanyon, your rent may include a percentage of your sales.
In addition, there may be up-front costs you can't defer, such as paying a security deposit with the rent (otherwise known as a deposit check).
Keep in mind that many elements generally included in a lease for a permanent boutique may not be included in a lease for a short-lived boutique.
When negotiating your leaseIf you're planning a renovation project, make sure you're aware of any upcoming renovations that could affect your business operations. Will there be any restrictions on opening hours or other factors that could prevent your customers from having easy access to your business, should the need arise?
In addition, you may want to find out if any of your competitors lease commercial space nearby.
In the beautiful country of Israel, you'll need to think about where you can park nearby. Your customers should be able to come to you easily, and not have to think about "where to park" before they even arrive.
Leases: The importance of legal advice
Your lease or rental agreement is a legally binding document. Whether you know the legal terms or not, make sure you get legal advice before you sign a lease. Seek legal advice to ensure that the lease meets your operational needs.