Newbie

[DRW 1]

Hello Everyone,

My name is Scott and i have been having a look around te site for a while now, lots of very usefl info for anyone looking to go into business (such as myself) so thought it was about time I sugned up and introduced myself!

I am at a stage in my life where i am looking to go into business, nothing massive, just a small bakery shop, i have friends in the trade who have given me some really good wholesale prices to work on, one question someoe may be able to answer is with regards legal costs when renting a shop, schedules I have looked at so far say something along the lines of 'The ingoing tenant will beresponsible for the landlords reasonable legal costs incurred in the granting of the lease' anyone know what and how much this legal cost would be?

Also what insurance would i need, building and public liability only?

Any help and info much appreciated, I am at an early stage (as you probably guessed) of costing everything and lookng at potential areas.

Thanks!
Scott

[laserads.co.uk]

Hi Scott

Welcome , hopefully some knowledgable person will pop along and answer your question ...i dont have any experience of renting shops but i have noticed over last year a lot empty and prices seem to be cheaper than i expected .. including prices for SALE ratehr than renting.

My only real experience of this was my brother opened a sandwich shop in aberdeen , was a busy enough shop if he was working it but with staff costs he was losing money so closed it after a year and had to keep paying rent until another leaser was found ...painful !

Have success and happiness !

PAUL

[johnthesearcher]

Welcome Scott

Good Luck with your new venture.

You will make some very interesting and informative contacts on the forums.

John

[Rickwood Portpatrick]

Hi Scott
Welcome to the forum and good luck with your bakery.
regards

[paulmcd]

HI Scott,

Not sure about the reasonable legal costs, but in any case I would imagine that buildings insurance would be covered by the owner of the building, contents you may have to arrange yourself. Personally we have a serviced office where the rent includes heating, lighting, cleaning, insurance including contents so not sure.

You will also need employers liability insurance if you are going to have any staff working in your shop.

Hopefully someone can help with your other questions.......welcome!

[Gouldie0]

Hi Scott,

Welcome to the forums, have you thought about locations yet for your shop? I'm checking some of your other queries with a client as they're far more in 'the know' about these things.

Kind Regards

Neil

[Edward]

Hi DRW and can I offer a few pointers borne of experience (but not, I emphasise, professional qualification).

First off I strongly advise that you approach whatever local agency support there is for (free) advice and initial training on the general basics - i.e. Business Gateway, Local Regeneration Company or maybe even the local economic forum.

I'd be wary of the clause about 'The ingoing tenant will beresponsible for the landlords reasonable legal costs incurred in the granting of the lease' . This is often pushed by so-called professionals as a "perfectly standard clause sir, if you want to rent". It's nothing of the sort and can be a trap - beware of what the 'reasonable' costs may inlcude i.e. what if planning consent for change of use were needed for the premise, or what if some sort of insurance or legal indemnity was required to facilitate the let?

I agree with laserad's comment about the killer cost of staff. I have given up on, and advised clients against, inumerable small business concepts because of staff costs - they are fixed and legally emburdened costs, and they end up with more of a call on your money than you do.

This leads onto how prepared are you for recruiting, employing and (above all) managing staff? I have admiration for small business owners who still manage in this day and age to employ staff and don't end up being stuffed at a tribunal or in the courts - you either have to be very competant in this field or have expert and affordable legal advice.

On the business activity you mentioned I would wonder about the issue of energy (fule) costs as these are going to going on rising hegley for the forseeable near to medium term future.

Sorry to pose so many negatives, but if you cannot address and mitigate them - don't go any further.