Business risk for smaller operators or startups is found in many forms. It is often created when a startup actively looks for business premises to work from, for example.
All too frequently, suitable workspaces are sought which will only fit the business plan as it currently stands. The trouble with this approach is that the best-laid plans of SMEs tend to change in the short and medium term.
Sometimes, the business grows much more rapidly than expected. During these early stages, your business model needs to be flexible and adjust accordingly.
Fortunately, Flexspace offers two types of contract, a shorter licence for flexibility and a longer lease for those who want more certainty in their planning.
Below, we take a look at various risks to your business, including your overhead or business premises risk.
The cost of business premises is one of the more significant but inescapable overheads that a small business will face. You should focus on it to reduce this risk to your long-term financial health as much as possible. Aim to sign a contract for a premises which suits your business today and tomorrow.
Flexspace are experts at recommending what type of contract will be best for your business. You should be looking for a space that suits your current requirements, yet have the flexibility to change if needed.
If you need to upscale later, then ensure you are not tied down to a longer-term arrangement than you need. Again, Flexspace provides the sort of flexible agreements which offer shorter arrangements that can change as your business needs evolve. Essentially, flexible agreements remove the threat of several risks but – most importantly – those that come from excessive overheads.
Obtaining the right staff is key to many small business managers who rely on a dedicated team of employees. Always take your time to obtain the best people that you can.
Don’t offer a job to a candidate you are not fully certain about. Re-advertise, if necessary. Keep newcomers on a temporary contractual arrangement until you are sure they fit the bill. Removing permanent members of staff from your employment who do not work out can be costly, stressful and time-consuming.
Nearly all startup businesses operate with a certain level of debt that they need to service. Few SMEs get up and running without borrowing to some degree, in order to handle their inevitable startup costs.
Borrow from a respectable lender who understands the business plan and who can see the longer-term vision of what you are trying to achieve. In addition, it is wise to ensure loan repayments, local business tax and rent are the priority over other business debts, such as supplier invoices. Of course, flexibility from your landlord will allow you to reduce your exposure to longer-term business debt, as previously mentioned.
Should you fall behind with any repayments that are due, then it is better to be upfront. Inform creditors of any short-term cash flow problems you may be experiencing. Work out a payment arrangement with creditors from the outset in order to catch up. This is certainly much better than waiting until they lose patience and call the debt in via the courts. Such action can damage your reputation as well as your bank balance.
Some SMEs will face particular business risks that only relate to their sector, such as companies who have seasonal workloads. However, all smaller businesses face risk from debt, overhead management and staffing. Get it right in your handling of these three and your business will succeed. Conversely, if you don’t keep your eye on the ball, then you could be placing your enterprise at a greater risk than it ought to face.
Flexspace pride themselves at helping SMEs flourish. Why don’t you get in touch on 0800 033 4444 and see what flexible deal they could offer you.
With 59 sites across the UK, there’s bound to be one that fits the bill.
You can rent a Flexspace unit for a minimum of 6 months all the way up to 10 years or more.
Most sites have different unit sizes, so you can move and grow with Flexspace. Choose workspace on your terms.
Most of our units are so flexible that you can shape the space to be precisely as you want it to be.
From Cafes to Gyms, Galleries to Labs, we’ve seen and done it all. Choose space to fit your needs.
Flexspace have helped me turn my little dream into a profitable reality! Being a small business owner looking for premises can sometimes be daunting but Loraine and the Flexspace team helped me with every step in finding the perfect solution for my business and I couldn’t be more grateful.
The team go above and beyond to look after their tenants and nothing is every too much trouble. Premises are clean, well maintained and I always feel extremely safe when I’m at work even on those dark winter nights! I have highly recommended Flexspace to fellow business owners – a hidden gem in Peterborough!
Our offices in Blackpool are easily accessible for the people we support, some of whom are in wheelchairs, there is a ramp to the entrance door and disabled facilities. Our offices are nicely decorated, comfortable and affordable.
Our Area Manager is very helpful and readily available should we have any queries or problems. The public areas are kept clean, safe and presentable. She goes over and above the call of duty for the clients.
I have enjoyed renting from Flexspace for the last 3 years and hopefully will be there for a good few years to come. Found the staff very helpful and easy to get on with.
Excellent service, the Centre team are happy to assist with meeting rooms at short notice. They ensure that repairs are carried out quickly. I needed several new sockets in my room and these were provided very quickly with no inconvenience to myself.
The staff are friendly, professional and knowledgeable and nothing is ever a problem.
Flexspace Dunfermline has had a big impact on the growth of my business over the last 3 years. Offering the ability to offer in-house training to clients with the use of the meeting room facilities. The team always ensure that the rooms are set up to the exact requirements I need to deliver the training to my clients. From equipment set up to the supply of refreshments to my delegates.
Having a dedicated team onsite that are always on hand to assist with anything from reception to administration is a real benefit to my business. The staff are always very approachable and nothing is ever too much for them when I ask for their assistance.
RDM Group has occupied buildings on the Bilton Industrial Estate for over 22 years and we have seen many owners in our time. In 2007 ‘Flexspace’ acquired the estate and through their resident manager, we have seen a dramatic improvement in the overall operation of the estate together with a continual investment and improvement program into the buildings, security and facilities which makes the estate an extremely good place for our company to be located.
Big thanks to you and Alan for your efficient handling of the whole process.
Many thanks for your support in our move into new office space, everything has been really smooth and easy even down to ensuring locks were changed and secure.
The facilities are excellent and spotlessly clean throughout and it’s so helpful for us to have access to additional rooms for booking for training events when we need it. We are so glad we made the move into a really pleasant and well maintained working environment.