The Language of Small Business Texts and Vocabulary Training (for students of Economics) Part 2. Учебное пособие

Choosing your Workplace

−the existence of a mortgage (check with building society or bank or whoever holds the mortgage);

−restrictions on insurance (check with insurance broker or company);

−the possibility that capital gains tax may become due on the sale of your home.

MANAGED WORKSHOPS AND SMALL BUSINESS CENTRES

Springing up all over the place are centres designed especially for small businesses. These provide small offices, workshops or factory space. There may well be an element of joint services thrown in, for example, telephone answering service, secretarial facilities. There could even be the existence of an advisory team to help you with initial management problems.

Sharing accommodation in this way with other small businesses has its attractions; there can be mutual support and business introductions, for example. You may also be able to run a more efficient business because of the shared facilities than from an office on your own.

SCIENCE PARKS

Finding premises in a science park has its attractions for high-tech businesses. Most science parks are attached to universities or polytechnics. The theory is that by grouping innovative businesses together and in close proximity with the research facilities of the university or polytechnic, this will provide a breedingground for new ideas. Whether this happens or not, your business may be able to project a high-tech image as a result of being located in a park.

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SEARCHING FOR PREMISES

There are two aspects to searching for premises. First, you have to find out about premises which are vacant. Second, you have to decide whether any of the premises you see meet your needs.

There are several places to look to find out about vacant premises:

−local newspapers;

−estate agents. You will find that not all estate agents handle commercial property. The estate agent dealing with a particular property may not be local at all, but could be based many miles away. Nevertheless, find out which of the local agents do deal in commercial property and ask for a list;

−contact the local authority. Many of them keep lists or registers of vacant industrial or commercial property within their boundaries. Indeed, it can be worthwhile having a discussion with the local authority, for example, the industrial development officer, as there may be special schemes to help you within certain areas of the authority;

−local enterprise agency or local Small Firms Service;

−a number of national agencies or organizations who provide premises, especially in areas of high unemployment.

Once you have gathered together information about premises for renting от buying in the area, the next step (before you go to see any of them) is to draw up a checklist of the priority points your premises need:

1. Space How many sq. ft do you need? For offices, allow roughly 100 sq. ft per employee.

Office ____________

Storage ___________

Factory ___________

Retail _____________

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2.Working environment What is the importance of these factors: Light ________________

Noise ________________

Cleanliness ___________

Smells _______________

Fire hazards __________

Neighbours (type of work) __________

3.Ease of access Do the premises need:

Good access for pedestrians ______________

To be near to bus stop or railway __________

Good parking facilities ___________________

Delivery facilities ________________________

4.Services and facilities Would you like already-installed: Partitions / fittings __________

Telephone __________________

Burglar alarms _______________

Central heating ______________

Lighting / electricity points ___________

Air conditioning/ventilation __________

Cooking / refrigeration _______________

5.What about cost?

Rent per sq. ft ___________

Rates per sq. ft __________

Maintenance ____________

Running costs ___________

Rent reviews ____________

Premium for getting in __________

Rent-free period ________________

Decoration _____________

Fittings needed __________

Phones, electricity, security etc. __________

Length of lease __________

When you have worked out a shortlist of properties which you want to see, it can be useful to draw a quick sketch-plan of the

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premises. At your leisure, you can mark where the various parts of the business will be put and get some idea of how comfortably your particular business fits into those premises.

INVESTIGATING AND NEGOTIATING

Before you sign anything, there are several steps to take to investigate the premises further. These steps are:

−to estimate costs;

−to check structure of property;

−to investigate the legal side of things, and;

−to look at local authority requirements.

TO ESTIMATE COSTS

There are a few things to investigate before estimating costs. First, do not rely on the measurements given by the estate agent or landlord. Measure the premises yourself. There is a chance that the area is less than said which could mean lower rent for you, if you have been quoted a rent per sq. ft.

Second, it would be a good idea to look at the premises a number of times on different days and at different times of the day. This should allow you to get a better idea of decoration, heating, lighting or noise insulation needed.

Third, make sure you estimate or allow for all the running costs as well as alterations and improvements you would need to make.

It is always worthwhile trying to negotiate a lower rent and, in particular, asking for a rent-free period of three, six or twelve months.

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TO CHECK STRUCTURE OF PROPERTY

Many leases make the tenant responsible for the repairs and maintenance of the premises. You can also use a survey to negotiate that the landlord pays for certain improvements before you take the premises.

TO INVESTIGATE THE LEGAL SIDE OF THINGS

Your solicitor should be asked to undertake a perusal of the lease. The sort of points to look out for are:

−can the premises be used for the type of business you have in mind?

−how long is the lease? Commonly, a lease is between three and twenty years?

−are there rent reviews and what are the arrangements for these? When are the rent reviews?

−can you sublet part or all of the premises?

−who is responsible for the repairs and the insurance?

−is the lease actually owned by the person trying to sell it?

−are the premises likely to be affected by any road or town improvements or alterations?

−who is paying for the landlord’s legal costs? It is general practice for you to pay them, but it is always subject to negotiation. At any rate, agree beforehand that you will only pay a reasonable amount.

−is it possible to rent the premises on a weekly agreement, rather than sign long lease? This gives you flexibility, but you lose security. An informal arrangement like this may be possible at times when there is a glut of vacant property.

−does the landlord want you to give a personal guarantee? Your solicitor should spell out to you the implications of doing so and help you to negotiate to try to avoid this.

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TO LOOK AT LOCAL AUTHORITY REQUIREMENTS

A simple step you can make for yourself is to call the planning and building control officer to find out what is the current approved use for the premises. If your intended use is the same, you may need to do nothing more. If a change ofuse is required, your solicitor should be able to help.

Depending on the nature of your business, you may need to consult:

−town planning and building control officers

−environmental health officers

−fire officer

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Definitions of Terms

Tangible assets – assets which have material form and therefore can be turned into cash fairly quickly e.g. securities, cash, cheques, etc.

Intangible assets – assets which are valuable in helping the business, but since they have no material form, are not easily turned into cash, e.g. goodwill, patents, copyrights, trademarks.

Warehouse COM.@IND. (1) a room or building for storing wares, i.e. goods intended for sale as merchandise (2) any place where other goods, not necessarily intended for sale, may be stored, such as a furniture warehouse. Syn,: depot, store, stores.

Covenant LAW (1) a solemn agreement in the form of a deed, binding the parties to perform some stated duty or duties (positive convenant) or not to perform certain acts (restrictive or negative convenant) or to pay money. (2) one of the conditions or duties contained in such a deed.

Mortgage, n. LAW@FIN. (1) a contract by which the owner of land (the mortgagor) borrows money, giving the lender (the mortgagee) an interest in the land as security for the loan. A ship or yacht may also be mortgaged. A mortage may also be given on goods and chattels. (2) the document or deed recording a mortgage contract. (3) the thing given as security.

v. to borrow money by giving a mortgage.

Capiital gain TAXN. an increase in the money value of a capital asset such as buildings, land, or shares in a company. The gain may be realized, i.e. turned into money, when the asset is sold, but until then it remains an unrealized gain.

Quotation (1) COM. a statement of the current price and conditions upon which a supplier is willing to sell, or upon which services may be performed. (2) INSCE. a statement of the premium for which an insurer is willing to accept a proposal of insurance.

Lease LAW an agreement in writing by which one person gives another the right to use property, usu. for a fixed number of years, in

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return for either a single sum of money called a premium or a series of regular payments called rent. The person giving the lease is called the lessor, the person to whom it is given is the lesee or tenant.

Definitions of Terms

Ипотека – залог недвижимого имущества для получения ссуды; долговое свидетельство о залоге недвижимости, выда- ваемое банком.

Котировка – формальное предложение определенному лицу заключить сделку с указанием полных условий.

Договор аренды – договор имущественного найма, по которому одна сторона – арендодатель – предоставляет дру- гой стороне – арендатору – имущество во временное пользо- вание за определенную плату; договор может предусматри- вать последующий выкуп арендованного имущества.

For Discussion

1.Why is searching for premises as the first thing done sometimes by a beginner in business considered as a joke?

2.What problem should prevail in starting a business?

3.What factors are involved in a search for a good location for your business?

4.What is the role of communications and for what categories of business is this problem essential?

5.In what parts of the country is it advisable to start your business from the point of view of skilled / unskilled labour?

6.Describe the role of centres of population as an influencing factor in running your business. Dwell on choosing a large or small population area.

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7.What factors influence both your choice of premises and the impression of your customers?

8.What are the advantages and disadvantages of choosing your home as premises?

9.How can premises be found?

Summary

1.Отнеситесь к выбору места для своего бизнеса со всей серьезностью. Не будет ли лучше начать бизнес, пере- ехав в другой район страны. Промышленные зоны и развивающиеся регионы могут дать значительные пре- имущества.

2.Помимо обычных помещений малый бизнес может иметь в виду совместное использование мастерских и офисов, использование своего собственного дома, а так- же размещение в научных центрах.

3.Прежде чем начать осмотр каких-либо помещений, со- ставьте перечень того, что вам требуется для вашего биз- неса.

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