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SMEs must think carefully before entering new property arrangements

17/10/2007  09:51:03



Businesses must also pay attention to the exit strategy as well as the entrance strategy when entering into a new property arrangement, according to the Royal Institution of Chartered Surveyors (Rics).

Most local councils will have economic advisers who are able to offer more specialised and tailored advice to company directors of new businesses. They will have a list of smaller properties which may be available for a new business start-up.

According to the Rics, local council economic advisers are more predisposed to assisting a new business start-up. They act as catalysts and will often point people in the directions of the local chamber of commerce or local companies who can adviser smaller start-up companies on what to do in terms of applying for self loans.

Ian McRae, a spokesman for the RICS said: "The most important thing is that small businesses get advice. The major problem that people face is that they may have bought themselves a house or they may have leased themselves a flat but commercial property is a minefield to become initiated."

Mr McRae also warned smaller businesses who are looking to expand not to sign a long lease, advising them to "try and go into premises where you can expand into or where landlords may have larger premises available.

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