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Ten Greatest Ideas for Planning Your Business • 25

• What are the terms?
• If it is a renewable lease, how much will it be to renew it?
• If it is rented when is the next rent review?
• What are the business rates?
• What insurance will you need?
• How long will this space last, and would it be better to allow a bit more for

expansion?

Remember that premises do not need to be huge and plush to impress people. Some
customers will like to support a startup that is using professional but not flashy
accommodation. Some of my customers loved visiting me at my office in my home
because they found it a bit of a break. The key is professional - put a lick of fresh
paint on and keep it tidy.

There are some exceptions to this rule. You must not look second rate or the
'local firm.' If your aiming point is the top league in advertising, you will need to
start with enough finance to have good premises from the start.

Idea 15 -Add up the equipment and start-up costs

Whereas 'premises' is a cost item on which a lot of successful startup people would
economise, they tend not to do this in the case of equipment. Investing in the latest
technology and making full use of it will probably be worth it in the end. Try doing
a cost/benefit analysis on it. Look at the alternative and try to cost that as well. If
buying a piece of accounting software means that you or your spouse can do the
bookkeeping, then think of the saving that will make at your accountants. The more
you can do yourself in terms of printing plans in colour, doing your own copying
and having your own Web site, the more control you have over your business and
the lower are your running costs. It is the running costs becoming fixed that threaten