Start a business

Setting up a business takes research, planning and legal know-how. Whether you're going it alone or setting up a small company, look no further for your business basics.

Where to work

It's very important to get your working location right, whether it's the place you actually work from or the place that your business operates from. You should devote as much time to making sure it suits you both practically and emotionally as you would when choosing somewhere to live.

Working from home

For anyone giving up a regular job that involved a long commute on a crowded and often late train, working from home sounds wonderful. Breakfast to boardroom in three strides, and no boss or colleague to hassle you. However, working from home has as many problems as plus points.

How to get it right

Ask yourself if it really is you. Will you miss the cut and thrust and gossip of an office environment?
If you do decide to work from home, will it be full-time, or could you work in an office part of the time? Will you be out on the road much and where will you get that human interaction?
Which part of the house will you work in? It's best to have a separate room, or office, but if that isn't possible, have an area in a room that's an office area.
Calculate what part of your utility and phone bills, and so on, are down to you working from home, since that proportion can be offset against tax.
People take office equipment for granted. You'll need to work out what you need for your business and look professional. You'll almost certainly need a computer, printer, phone and possibly a separate phone line. You'll need connection to the internet, possibly broadband, and maybe a fax machine.
When choosing your equipment, such as a computer, ask yourself what you really need, rather than what the sales people want to sell you. Spend wisely. Remember you get tax breaks on purchases too.
Check with your insurance company that you're properly insured.
If you do have a separate room for your office, ensure you'll be uninterrupted by family. If you give yourself office hours it'll make you feel more professional. If you're in a main house room and you've got young children, you'll find it very difficult to work and may find that working from home isn't right for you.

Where to locate

Deciding whether to buy or rent is an important consideration. Renting is practical because you may need to move as you expand, you'll have fixed costs, but none of the overheads of running a building. However, there are other points to consider:

Location. If your business is high profile, such as a shop, then being where you can be seen by your customers is very important. If your business is storage of spare parts, for example, then it can be out of public view.
Transport. If you're going to be moving goods around, access to motorways may be important. If you yourself will be out on the road, or travelling a lot, proximity to rail and air links might also be worth considering.
Cost! Cost implications have to be considered but it's better to look at value. A sandwich shop at a major railway station will obviously cost more to rent than in a back street of a small town, but the sales and therefore takings will be much higher. On the other hand, if you're not in retail, but do most of your work on the phone or by email, it doesn't make sense to pay top dollar for premises.
Business rates are worth looking at too. The local council or landlord will be able to tell you what the business rate of a certain property is. Knowing that fixed cost can help you to decide where to put your business.
Grants. Poorer areas can offer grants to encourage investment and therefore jobs. If you just want a warehouse, or a small factory, that could be very useful as well as giving you the feeling you're helping the community.

Renting

When you're selecting a property you need to know that your business will be safe there and that it will be able to succeed. So you should check the following points:

How much is the rent, when's it due to be paid and what's the deposit?
How long is the rent period and what notice is required? Imagine how awful it would be to invest in a shop, win customers just to find you had only signed up for a year.
Do you have the right to renew your tenancy should you wish to when the period is up?
What are you responsible for and what's the landlord responsible for? Are you allowed to decorate to your taste, can you move things around inside, and so on?

Serviced space

Another idea is to rent fully furnished and staffed offices. This can be a good option if you just want an office and don't need a full-time secretary. You have someone to answer your phone and meet clients at reception. And the leases are usually much more flexible than traditional leases. The downside of serviced space is that it's about 25 per cent more expensive than traditional office rent and therefore isn't a long-term option.

Expanding your business

Starting a business and guiding it through the first few years is the hard part. Getting bigger isn't necessarily going to make things more difficult. However, it usually means more space is needed, so it's wise to think about this from the outset of renting your premises.

Is there spare capacity in the premises to rent extra appropriate space? Appropriate space is important, because there may be space that wouldn't accommodate new machinery, vehicles or even staff.
Are there premises nearby that would be easy to move to if you couldn't stay where you were?
Is the place you're considering going to be a millstone if you expand faster than you thought? How easy would it be to move quickly?
Can you negotiate cheaper rent rates the more space you eventually rent?
What are the service charges likely to be if you rent more space? Would it be cheaper to move elsewhere?

Buying a property

Advice for first-time buyers, on viewing, and putting in an offer.

First-time buyers

Judging by the headlines, you could be forgiven for thinking it's all doom and gloom for today's first-time buyers. But there are ways to make it more affordable, such as buying with a partner or friends. The obvious advantage of buying with someone else is that it allows you to buy a bigger and possibly better home in the area of your choice. However, it's always advisable to rent together first for at least six months first; if there are too many disagreements, it's much easier to walk away from a tenancy agreement than a joint mortgage. No matter how well you get on with your co-owner, there are risks to be considered. If one of you can't meet your obligations, it will fall upon the other(s) to make up the balance of mortgage payments. You must also consider what you'd do if either of you couldn't work due to illness, lost their job, wanted to move out, or died. You should seriously consider taking out private health insurance or critical illness cover. It is also worth drawing up a legal contract to cover any eventuality.

Viewing properties

It's important that the estate agents regard you as a serious applicant. Show willing and be eager to view, and you'll be top of the list when something new comes on the books. Call them regularly - they'll think of you first when a property comes on the market. Many estate agencies now have their own websites, where you can browse available properties. Be aware, however, that many don't update their sites as often as their shop windows. Here are some useful tips to keep in mind when looking for the house of your dreams:

View the properties as soon as possible. Leave it too long and you could lose the house.
Make good use of your lunch hours or make appointments on the way to and from work.
If two of you are buying and you have children, decide which one of you will be the chief viewer, whose job it is to weed out all but the strongest candidates.
Don't be afraid to make numerous visits with tradesmen to find out what you're letting yourself in for.
Check the history of any scruffy - and therefore cheap - property. If it's been rented it may have had a succession of landlords, all of whom may have done the bare minimum in repair and upkeep.
If you're tempted to buy a run-down property to renovate and sell on, check how long it's been on the market. If it's been there a long time, it suggests there isn't a lot of profit to be made.
New carpets, bathrooms and kitchens can be signs of a superficial renovation that is hiding more serious work to be done.

Putting in an offer

It's human nature to try to strike a deal, but if you find your ideal home and it seems to be priced correctly, consider offering the full asking price. This means you'll be taken seriously, there won't be any time-wasting and it will lessen the possibility of another party stepping in (see Gazumping, below). All offers should be made with the stipulation of taking the property off the market. Getting a 'Sold' board outside is a good way to dissuade others from looking.

Chains

Most house are sold as links in a chain but, unfortunately, one in three property chains fall apart. This can happen for numerous reasons, from one party not having their finances in order, to an unpleasant surprise in the survey. Under present house-buying and selling practice, little can be done to alter the process, although the Government is proposing a legislation that will require home owners or their selling agents to provide a Home Information Pack (sellers pack or HIP) to prospective buyers on request. The best way to ensure a chain progresses smoothly is through good communication. Stay in regular contact with your solicitor and estate agent to make sure everything possible is being done to speed things along. It can also help to stay flexible. Be prepared to move in with your family or rent as a short-term measure if it means you can keep the chain going.

Gazumping

Gazumping - outbidding rivals at the last minute - is a horror estate agents are powerless to stop (even if they wanted to!). Unless you're lucky enough to live in Scotland where there are laws to protect the buyer. Under the Estate Agency Act, estate agents are obliged to pass on all offers they receive, although a determined buyer will probably go straight to the vendor.

There's little you can do to repel a determined bidder, but there are ways to lessen the chance of it happening, or at least reduce the impact if it does:

Offer the full asking price and request the property be removed from the market.
Be flexible with the vendor and don't quibble over minor points.
Make it clear you're willing to complete on their timescale, not yours.
Be nice to the vendor - if you've established some kind of relationship with them, it should be harder for them to let you down.
Take out insurance - you must do this before you instruct your solicitor, but then if you're gazumped, you can be refunded the cost of your various fees.

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Beginner's guide to buying at auction

Auctions are a great way to buy property competitively. But be warned, there is more to buying than just turning up and landing yourself a bargain.

Preparing for auction

The main attraction of buying at auction is that you avoid the conventional drawn out process of house buying. At auction it's condensed into a matter of minutes rather than months and when the hammer falls, you own the property. Consult our handy guide before you attend your first auction. Top tip: "If you're new to auctions, sit in on one first before you join in - bidding isn't for the fainthearted!"

Contact the relevant auction house and request their catalogue. Most auction houses hold regular auction sales with a catalogue printed some weeks in advance. You can also subscribe to catalogue mailing lists.

Go through the catalogue carefully, read the details thoroughly and identify the properties you are interested in.

Do arrange a viewing of the lot(s) - viewing arrangements will be listed in the catalogue.

View any properties you are interested in.

Research the property thoroughly and ask local estate agents and neighbours for their opinions.

Check the description of the lot in the catalogue is accurate.

Carry out the usual property/land searches.

Carefully read the conditions printed in the catalogue. Always get legal or professional advice from a solicitor and, in appropriate cases, a chartered surveyor.

Make financial arrangements to ensure you have a 10% deposit ready for payment on auction day, when the contracts are signed and access to the remaining 90% within 28 days.

Plan ahead if you need mortgage assistance. It's wise to arrange a mortgage in principal with a bank or building society before buying at auction. You could lose your 10% deposit if you fail to complete within the time given (normally within 20 working days).

Be aware that buying at auction is a binding commitment and carries the same legal implications as a signed contract by private treaty. In most cases, auction offices have copies of legal documentation provided by the seller's solicitors which can be sent to you.