1. Define specifications

Before starting your search for business premises, it is imperative to clearly identify your specific needs. These unique needs specific to your business will be the pillars of success of your project. Take the time to identify them to effectively guide your research:

How much space do I need?
What equipment is essential for my business?
What is the best location to attract my customers?
What is the best location for my employees?

You also need to accurately determine the area required for your business. Too small, it will hamper your organization and force you to make compromises. Too big, it will generate unnecessary costs. Think about your future organization to determine the optimal size.

By having a clear vision of your needs, you can refine your search and avoid wasting time on options that are not right for you.

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2. Choosing the ideal location

Choosing the location is a fundamental step. It must be aligned with your target customers and facilitate travel to your customers, suppliers and employees. Also select an attractive economic activity area, by first checking the installation rules in this zone.

To make the right choice, here are a few things to consider:

Accessibility and visibility: Opt for a space that is easily accessible for your customers, employees and suppliers. Good visibility from major traffic routes can increase customer traffic and strengthen the reputation of your business. Also, look at the availability of car parks or public transport.
Demographics of the area: Analyze local demographics to make sure they match your target market. Data on age, purchasing power, consumer habits, and population density can influence your decision.
Competition and synergy: Evaluate the presence of direct competitors in the industry, which could affect your market share. At the same time, the presence of complementary businesses can create beneficial synergies and attract more customers (for example, a coffee shop next to a bookstore).
Growth potential: Consider the future development of the zone. A developing neighborhood can offer long-term growth opportunities through increased population and economic activity.

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3. Predicting the Evolution of Your Business

By taking the time to plan for the evolution of your business and by integrating this long-term vision into your choice of location, you maximize the chances of supporting the growth and future success of your business. A well-chosen location can become a major strategic asset, conducive to the development and expansion of your business.

Here are some tips for integrating this long-term vision into your real estate decision:

Anticipate space needs: Consider the potential growth of your workforce and the expansion of your operations. Estimating the space needed for the next few years can prevent you from having to move prematurely, which would be costly and disruptive to your business.
Flexibility of the premises: Look for a space that offers some flexibility, allowing for internal rearrangements or expansions. Options like removable walls or additional space available to rent can be beneficial.
Assess the risks: Think about the potential risks your industry could face and how the chosen location can help mitigate them. For example, a retail business could benefit from being located in an area with a high density of foot traffic, even if the rent is higher.
Consult with experts: Consider consulting commercial real estate experts or strategy consultants to assess the relevance of your real estate choices in light of your growth projections.

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4. Determining priorities

After establishing clear specifications and identifying an ideal location, it is often necessary to realize that not all defined criteria can be perfectly satisfied due to practical constraints such as budget, availability of goods, or regulatory limitations. It then becomes crucial to prioritize your criteria in order to make effective decisions. Here are a few steps to help you prioritize:

Evaluate the importance of each criterion: Start by listing all the criteria you defined in your specifications. For each, assess its relative importance to the success of your business. For example, the proximity of suppliers may be crucial for a production company but less so for a service company.
Classify the criteria: Once the evaluation is done, rank the criteria in order of importance. You can use methods such as scoring or decision matrices to objectify this ranking.
Consider the trade-offs: Identify which criteria are essential and which are desirable but not essential. This will allow you to understand where compromises can be made. For example, a slightly higher rent may be acceptable if the space is in a high-visibility area that attracts more customers.
Analyzing the long-term impact: Consider the long-term consequences of each compromise. Opting for a smaller space may be economical in the short term, but may hinder future business growth.
Making informed decisions: With your priorities clearly established, you are better prepared to make informed decisions. This will help you navigate the real estate market while staying aligned with the strategic goals of your business.

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5. Establishing a Provisional Budget

When looking for business premises, whether to buy or rent, establishing a provisional budget is a fundamental step. This budget should not only reflect your current financing capabilities, but also anticipate your future capabilities. Here are some key steps to develop an effective and realistic budget forecast:

Determine your financial resources: Take an inventory of all your available sources of financing, including savings, bank loans, lessors, or potential investors. This will give you a clear idea of your borrowing capacity or your initial investment budget.
Estimate total costs: List the costs associated with buying or renting space. For the purchase, include the purchase price, notary, legal and transaction fees, and any renovation costs. For renting, consider rent, rental charges, security deposits, and development fees. Don't forget recurring costs like property taxes, insurance, and maintenance.
Calculate your operational costs: Add anticipated operational costs, such as utilities, staff salaries to operate the space, and equipment and supply costs, to your budget.
Provide a margin of safety: Include a financial reserve to cover the unexpected. This margin can help manage market fluctuations, unexpected cost increases, or periods of low economic activity.
Evaluate your flexibility: Compare your total planned expenses with your expected income to determine your financial flexibility. This will help you assess whether you can comfortably bear the costs associated with the chosen location in the long term.

By following these steps to establish a provisional budget, you ensure that you choose a business space that meets not only your needs but also your financial capabilities, thus minimizing the financial risk for your business.

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6. Anticipate the regulations applied to your business

When selecting commercial space, it is crucial to understand the specific regulations that apply to your industry. These regulations can affect the use of your premises and require special attention to avoid legal and financial complications. Here are some examples of regulations to consider:

Establishments Receiving the Public (ERP): If your activity involves welcoming the public, your premises must comply with ERP standards that guarantee the accessibility and safety of people. This includes accessibility standards for people with disabilities, fire safety requirements, and evacuation requirements. Make sure you understand these requirements and assess what development work may be required.
License for the distribution of alcohol: If your business includes selling alcohol, you need to get an appropriate license. The different types of licenses (license III or IV, for example) depend on the nature of the alcohol sold and the hours of sale. It is important to carry out the necessary administrative procedures before the opening of your establishment.
Health standards for restaurants: For catering activities, it is essential to comply with hygiene and food safety standards. This includes the correct management of foodstuffs, compliance with storage temperatures, and the conformity of the equipment used.
Environmental regulations: Some activities, especially those involving the use of chemicals or the production of waste, are subject to strict environmental standards. This may include waste management, emissions into the air, noise pollution, or discharges into water.

By anticipating and understanding the specific regulations applicable to your business, you can better plan the necessary adjustments to your business premises and avoid unexpected delays and costs. It will also allow you to guarantee continuous compliance, which is essential for the proper functioning and sustainability of your business.

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7. Understand the terms of the lease

The type of commercial lease can greatly affect your finances and obligations. Familiarize yourself with the different types of leases (3/6/9, precarious, professional) and their implications, especially in terms of duration, terms of termination, and liability for repairs and improvements.

Here is an overview of the main types of leases:

Classic commercial lease (3-6-9) : This is the most common commercial lease, often referred to as “3-6-9". It allows the tenant to rent space for a period of nine years. The tenant has the option of terminating the lease every three years, with six months' notice. This lease offers significant rental stability thanks to the right to renewal, although the owner may refuse renewal under certain conditions, including the payment of eviction compensation.
Short-term lease or Exemption lease : This lease is limited to a maximum of three years and offers great flexibility to entrepreneurs who do not want to make a long-term commitment. It is possible to establish several successive derogation leases, provided that their cumulative duration does not exceed three years. At the expiration of the lease, the rental relationships end automatically without the right to renewal or eviction compensation.
Precarious lease : This type of lease is characterized by an end determined by a specific cause of precariousness and independent of the will of the parties, such as the planned demolition of the building. It offers great flexibility to test an activity in a specific location, without long-term commitments. At the end of the lease, the rental relationships end without the right to renewal or eviction compensation, unless otherwise agreed.
Professional lease : Designed specifically for liberal or civil activities, a professional lease is not a commercial lease. Its duration can be adapted according to the needs of the parties and offers a certain flexibility. It does not confer a right to automatic renewal and does not provide for eviction compensation at the end of the lease, unless otherwise stipulated.

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Conclusion

As a manager, you are aware of the crucial impact of choosing your business premises. It is the base on which the performance and productivity of your business. However, finding the perfect location can be complex, especially in highly stressed areas.

We know that choosing a business space is not an easy decision. It is a real strategic choice. At IPGS Immobilier, based on our transversal expertise, our strength of proposal and our knowledge of the entrepreneurial world, we have clear objectives:

Finding the most suitable solutions
Adjusting our support effectively
Sharing our experience for an informed decision in real estate

Do not hesitate to make an appointment for us to discuss your project.