Your business may be one that makes having your own premises essential, for example, if you want to open a restaurant or run a garden center. In this case you will need to weigh up the cost against the advantages of the location. 

A shop well away from the main street may be comparatively cheap but if you rely on passing trade you may seldom see a customer. Similarly, an office in a run down part of town may mean low overheads, but deter potential customers. So although it is essential to keep your overheads as low as possible, location is vitally important.

Achieving the right balance between a good location and cost effective premises will be crucial to your success. If your business is the sort that relies on passing trade, it is worthwhile spending sometime outside the premises you are considering and observing the types of people and vehicles, which pass by.

Check the surrounding businesses too, talk to people opening other enterprises nearby and find out their views of the area and the amenities.

• Can your customers, staff and supplier get to you easily?
• Is there adequate parking? 
• What is the public transport like? 

Check with your local authority well in advance of making any commitments, on what planning or development of the area there will be which might affect you business.  Leases and local authority regulations can often place restrictions on certain types of business activity which you should also be aware of.

Your premises can either be purchased or leased.  Purchasing a property obviously ties up a substantial amount of capital and may be less flexible as it is a long-term commitment.

If you decide to lease premises make sure that you understand all the clauses.  Pay particular attention to the period of lease; renew ability of the lease and clauses relating to the escalation of lease payments.