How to start a business from scratchBusiness premises
In what premises is it customary to conduct business? Of course, in non-residential ones. What do you associate with the word “business”? How do you understand the phrase: “This guy has his own business”? Most people imagine a store or some kind of office with a secretary in a miniskirt. Few people think that it is possible to conduct business at home or without any premises at all. Many simply do not believe that this is possible. They remove their apartments from the housing stock, sometimes without even thinking about whether this is necessary to do this at all for this type of activity.
We optimize costs
I strongly recommend that you analyze the possibility of operating a business without premises or at home, and only then search for non-residential premises.
The fact is that:
The essence of effective management is the rational use of the budget.
Always remember this phrase when you have a desire to spend money thoughtlessly. Don't be led by emotions. In business you need to be cool-blooded - this is the only way to achieve success.
However, some types of activities are not able to function effectively without the use of non-residential premises. For example, shops, offices of legal entities, points for receiving orders from the public, warehouses, etc. I want to tell you about the features of choosing such premises. I suggest starting with the wording.
How to use unoccupied premises: 10 life hacks
How wonderful it would be if all the premises of the business center, as if by magic, were filled with tenants. However, empty spaces are not a reason to panic. We bring to your attention lifehacks that will help bring additional profit to your complex. Directly or indirectly.
"Money to the Cashier"
1. Organize a coworking space.
A mini-office or individual workplace is a Western trend that has taken root well in Russia. Its advantages for clients are budget, comfort, work not in a standard mode, but at a convenient time. There is a stereotype that coworking is necessarily a creative and underground place for young and energetic people. In practice, mini-offices are an excellent option for people of all ages and professional categories. Therefore, an equipped coworking space in a business center with a good location and infrastructure will attract the attention of visitors. To organize the space you will need workplaces, a relaxation area with a kitchenette, and a reception area with a secretary. The minimum staff includes room administrators, system administrators, secretaries, and cleaners.
2. Convert vacant spaces into common areas and enter into an agreement with tenants on the maintenance of the public space.
3. Set up a retail outlet in a vacant space. It is worth considering that the main clients of such a mini-market will be tenants and visitors of the business center - there will be no people “from the street” here. The range of products includes food and drinks, coffee, newspapers, stationery, small household items, flowers and souvenirs.
4. Rent out the premises for a showroom. The advantages of this solution for tenants are the access system in the business center and a high level of security: clients come to the showroom by appointment. To decorate the room, no special investments are required: furniture, hanging, mirrors, fitting room. But the office itself must have high-quality finishing and good insolation.
5. Advertise the business center to PR agencies as an excellent platform for events. In this case, you can use not only free offices, but also the surrounding area. Obvious advantages are safety, privacy, technical capabilities for connecting equipment.
6. Rent out space for short-term rent for video or photography . This option is suitable for presentable rooms with expensive furniture and good lighting. This is a rather narrow segment of the market, but the demand for such services is high: there is just not enough supply.
7. Set up an exhibition gallery . This is another short-term rental or event option for tenants and residents. At such an exhibition, not only paintings or photographs can be exhibited, but also any original works intended for sale (the so-called “master fairs”). CITYDEL BC and Domnikov BC have positive experience in organizing such an exhibition space.
8. Rent out premises for master classes or seminars. This is a very popular option. A good location near the metro, convenient premises, the ability to organize a coffee break - office premises are more comfortable for small events than formal conference rooms.
Increasing tenant loyalty
These two solutions do not directly benefit the business center owner, but they seriously improve the loyalty of its tenants, which means they will attract the attention of new clients.
9. Create a comfortable rest area for employees. It is clear that people come to work to work and not to relax, but a relaxation zone in a business center is necessary.
10. Set up a sports corner - an area for unloading and fitness. Here you can periodically organize team building and other interesting events for tenants.
Any free space is your potential income. Therefore, consider all the possibilities of using it - even not the most standard ones.
What is non-residential premises
Real estate objects are divided into two categories: residential and non-residential. The first category includes residential buildings, and the second includes objects that are not intended and are not used by citizens as homes. In relation to business, the following definition can be derived:
Non-residential premises
– these are real estate objects in which entrepreneurs are allowed to open shops, offices, warehouses, order acceptance points, exhibition centers, etc.
Such premises significantly expand business opportunities and contribute to its rapid development.
Restoration and cleaning of pillows
Pillows should be changed every year - these are the recommendations of experts. An alternative to a new pillow is restoration of a down product. It is difficult to perform this procedure at home using a faucet. That's why items that give old pillows new life in just 20 minutes are always popular. In large cities, such a business brings good profits.
Investment size:
Expense item | Amount, in rubles |
Renting a small space | 20 000 |
Down cleaning equipment | 16 000-40 000 |
Sewing machine | 8 500 |
Vacuum cleaner | from 3 000 |
Other expenses (napkins, etc.) | 20 000 |
Total | up to 91 500 |
As promotional activities:
- Posting advertisements.
- Flyer distribution.
- Promotion in social networks.
If you repair only 7 pillows a day, then after 4 months the business will pay off. These are the most conservative estimates.
Main advantages
Conducting business activities in non-residential premises has a number of advantages:
- Business gets its own “territory”.
For example, you can tailor clothes to order at home, or you can open an atelier by renting a small room. In the first case, the business is a “guest” on the “territory” of your home. In the second - the “owner” of the rented premises. Having your own “territory” disciplines the entrepreneur and also stimulates him to be more active. - Empowerment.
Not all activities can be done at home. By opening a store, office or warehouse, you expand the capabilities of your business. The store will increase sales volumes, the office will become the official representation of the business and the workplace of employees, the warehouse will accommodate all available inventory and raw materials. - Advertising platform (point of sale).
Imagine, there is an unknown individual entrepreneur Ivanov. Stays at home, provides accounting services to legal entities and individuals. Places a small line advertisement in the newspaper every week, lives inconspicuously, hardly goes out to people, sometimes forgets his name. And then one day his father-in-law comes to Ivanov in a dream and says: “Open an office, otherwise I’ll come to you every night!” The accountant wakes up in a cold sweat shouting: “No! Not this, Vasily Kirillovich!” In general, the next day Ivanov rents a small room in an office center and places an advertising sign “Quality accounting services” at the entrance. After some time, IP Ivanov will call his father-in-law dad for the first time in 15 years... Nothing special happened in this story. Simply, the office became an advertising platform for IP Ivanov - visitors to the office center, thanks to a well-placed sign, gradually learned about the services of this entrepreneur. The costs of renting the premises were recouped many times over thanks to the attracted clients. Six months later, Ivanov hired several assistant accountants, and a year later he opened an accounting firm and transferred all the routine work to his subordinates. As a result, it grew from a small, unknown individual entrepreneur. A similar situation exists with opening a store. In essence, you have an additional point of sale, which helps increase sales volumes. - Formation of the “correct” image of the company.
Most types of businesses operate in a competitive environment. Naturally, every sensible manager strives to present his company in the most attractive format. The premises are one of the key objects in the formation of the image. As an example, we can cite IP Ivanov, our hero from the previous paragraph. Tell me, who will inspire more confidence in you: the inconspicuous individual entrepreneur Ivanov or LLC Ivanov-consulting-father-in-law? Individual entrepreneur Ivanov lives with his wife’s family in her two-room apartment and receives his clients there. When you come to Ivanov-consulting-test LLC, you immediately plunge into the business atmosphere of this company. Stylish dress code for employees, corporate symbols, high team spirit, disciplined office furniture - all these factors can immediately instill trust and willingness in the client to cooperate. In general, image is not the last thing, friends!
So, we’ve sorted out the advantages, now let’s look at the main functions for which a business uses non-residential real estate.
What nuances are important to consider?
Saving on renting or purchasing premises is a powerful argument.
However, there are a number of costly issues that require solutions before opening a company:
- Installation of ventilation system.
- Reconstruction work - redevelopment and so on.
- A very pressing issue is lighting. In basements, windows are small or absent altogether.
- Registration of permits from government agencies for business activities in basement premises.
It is quite possible to realize the dream of having your own profitable business even in a basement. The main thing is to decide on the direction of activity. In big cities there are many options. Let's look at some of them - the most profitable ones.
Functions of non-residential premises in business activities
To solve what problems does modern business use non-residential premises? The most common objects are:
- Outlets.
Establishing sales is a key task of any business. Opening a retail outlet helps to increase sales, which, in turn, leads to the prosperity of the company. But we must remember that not all stores operate efficiently - special attention should be paid to the location of the facility. - Order acceptance points, as well as exhibition centers.
These premises are used primarily in the service sector to process orders from clients. In essence, these are the same retail outlets, only they sell not finished goods, but services for their production. For example, having come to the exhibition center of a custom-made furniture manufacturer, a client can “touch” the exhibition samples and order the production of the product he likes. The so-called stores of doors, windows, blinds, suspended ceilings, etc. work in a similar way. Despite the fact that many of them use retail space in their business, they are not involved in the actual sale of goods on the “here and now” principle. In reality, such points serve as points for receiving orders from the population. - Points for direct provision of services.
If the premises from the previous paragraph are used only for searching for clients and placing orders, then here the customer is provided with all the necessary services on the spot. For example, hairdressers, massage parlors, beauty salons, car service centers, entertainment centers, cafes, restaurants, pizzerias, gyms, service centers, etc. Such premises combine two functions: searching for clients and providing them with services. - Office
for conducting business activities. A company without an office is like a homeless person without a refrigerator box. Most operating companies have a certain staff of accountants, analysts, managers, executives at various levels, etc. All personnel must be provided with jobs, and also united into a team - creating favorable conditions for full-fledged work. This is what office space is for. - Production
can only be opened in non-residential premises specially equipped for this purpose. By the way, regulatory authorities have much higher requirements for them than for ordinary offices. Therefore, opening a production facility is associated with unnecessary financial expenses, hassle and bureaucratic delays. - Warehouses
are used to store goods, raw materials, materials and other products necessary for the operation of a business. When the need arises, companies use such real estate in their activities.
We figured out the main functions. Now let's look at the factors influencing the effectiveness of non-residential premises in performing their functions.
Waste paper collection point
Recycling waste paper is a socially beneficial business with enormous potential. Every year, Russian citizens throw away up to 100,000,000 tons of paper raw materials. This is actually billions of dollars.
Having opened a collection point for these raw materials, the entrepreneur:
- Makes a personal contribution to solving an important problem at the country level.
- Receives a stable income.
What you need for a successful start:
- Search for distribution channels - determine to whom, in what volumes and at what price the raw materials will be sold. After this, you can determine the price for 1 kg of raw materials for those who bring it to the point themselves. It, of course, will not be too large, so the main emphasis is on the social significance of this activity.
- Freight transport is required.
- Renting a room where waste paper will be received and stored. There must be a convenient access route. You will also need scales.
- Options for advertising activities: posting advertisements and placing free advertisements in newspapers.
Advantages of the waste paper business: no special education, many years of experience or large investments are required at the start.
What influences the success of a business in non-residential premises
Every city has different business processes. Some companies open, others cease to exist. So I periodically discover new shops, cafes, and offices on the streets. You know, I often manage to immediately predict their fate: “This point will not last even three months, but this one has a chance to survive with proper business organization. Well, this one will go bankrupt only if its director is a pathological loser.”
How do I make such predictions? Everything is very simple! Sometimes it is enough to verify the presence or absence of factors in the premises that contribute to the success of the business. This is what we're talking about:
- Condition of the premises.
Ragged walls, dirty windows, plaster falling from the ceiling, cobwebs, dried stains on the floor from spilled coffee, etc. – all this is alarming, and also makes you want to run away as quickly as possible. I once looked into one office and wanted to order a plastic window there. From the very first seconds the smell of tobacco hit my nose. Then, looking around the room, I saw dilapidated furniture, smoke-gray walls, “Sovdepov” dirty windows and the sad, gloomy faces of three shaven-headed managers. Already at that moment I had a desire to take a step back and leave the office, but I overcame myself and inquired about their products. One of the managers looked at me casually and smiled mysteriously, flashing a gold crown on his front tooth. He came close to me and... spoke. The powerful smell of fumes hit me in the face, my head began to spin, my vision went dark... Then I only remember how I ran out of this kingdom of darkness into the light of God, and greedily swallowing fresh air, I swore to myself that I would never come closer to this room than this 500 meters. Remember, friends: The premises and its employees are the face of your business. As they say: “you meet people by their clothes.” - Location.
What do you think will sell better in the industrial residential area of the city - luxury clothing or Chinese consumer goods? Which store will attract more visitors - whose doors face the courtyard or the main street? Is it advisable to open, for example, a furniture production facility in the city center and pay huge amounts of money every month to rent these spaces? Unfortunately, many entrepreneurs first open stores, offices, production facilities, etc., and only then, when things don’t go well, they turn on their brains and start thinking about the reasons for their failures. I advise you the following: Don’t be lazy and conduct a marketing analysis of the territory in which you plan to open your business. Remember, unsuccessfully invested money in premises often cannot be returned. But this is a decent part of the budget. - Presence of competitors.
Do you need two hairdressers on the same street? What about two car repair shops? Most will now answer: “No, Yuri!” But I will say this: Each case must be considered individually! You should thoroughly study your competitors’ business, identify its weaknesses, weigh your strengths, and only then draw final conclusions. Naturally, if the competitors are stronger, then it is better to look for a place away from them. If you feel that you are ready to “butt heads” with them, then you can not pay attention to these losers.
So, friends, I hope you are not too tired and are ready to continue learning the basics of entrepreneurship. If yes, then we move on to the next important topic: Features of renting non-residential premises for business.
Our groups:
Art supplies store
This is a retail outlet in the format of a minimarket with goods for creative development, hobbies, and handicrafts. The desired location is a 60 m² basement on a central street or in a residential area near a school, which is called “near the house.”
Investment size:
Expense item | Amount, in rubles |
Rent and employee salaries for three months | 500 000 |
Repair work | 400 000 |
Equipment | 240 000 |
Product | 420 000 |
Total | 1 500 000 |
The planned payback period is 1 year.
What is the difference between PSN and target?
Premises for free use - commercial real estate. This is either a free-standing building or rentable space in residential buildings or extensions to them. PSN has no specialization, is universal, meets general requirements for non-residential premises, and is suitable for any purpose. The tenant decides how to use it and equips it in compliance with business requirements: store, office, warehouse...
The main advantage of free-use premises is versatility. If a property is registered for a specific purpose, for example, a car dealership, then transferring it to another type, for example, a store, will require changes in the documentation. In addition, the owner is responsible for redevelopment, and there are strict requirements for objects of intended use.
Therefore, car dealerships most often open in place of closed car dealerships, and instead of one store, another. If a “free” purpose is indicated, then the requirements are common to all non-residential premises, and the new tenant will re-equip it for the purposes of his business.
Is the premises suitable?
For a store, canteen, or beauty salon, it is important how many people walk past their doors. The more often they go, the more they notice. Therefore, a good place for them is central, busy streets, or the first floors of large residential complexes. Beginning businessmen often want to rent space in large centers, in new complexes. But a beautiful, newly built area often turns out to be uninhabited and there are few clients. And rich interiors do not mean high income. Quite the contrary. The high rental price and unprofitability force you to look for a simpler and cheaper tenant (if you are still afloat by that time). When choosing a PSN, you need to pay attention not to prestige, but to the advantageous location of the property.
When organizing a production or warehouse, priority will be given to access roads, proximity to transport routes, large areas, and the possibility of expansion. Most likely, a building on the outskirts of the city, an industrial zone, will do. In the center it is inconvenient, the movement of heavy vehicles is limited.
Warehousing and manufacturing businesses often choose class “C” commercial real estate. The volume of such real estate is gradually decreasing: office buildings are being reconstructed and transferred to class “B”, and industrial buildings are being demolished to make way for new development.
Yulia Dymova, director of the Est-a-Tet secondary real estate sales office, answers:
Speaking about the common property of an apartment building, it is worth noting that any use of it, including commercial purposes, must be agreed upon with the owners. Only they have rights to roofs, basements, common halls, elevator shafts, etc. However, basements are indeed periodically used as commercial premises, but after some time they are transferred back to the owners because these transfers are carried out illegally. Therefore, it is advisable to request information from Rosreestr to find out who is the copyright holder of this premises, and also to prove that there are common communications there, therefore this property is the property of an apartment building, which cannot be commercial.
Does the HOA receive income from businesses in the building?
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