Is it worth investing in your own business premises?

12 months ago Haughton Design bought, refurbished and moved into our new offices. So was it worth it and has such an investment been worthwhile?

In the 20 years since HD moved to our previous address, the Business Innovation Centre, we got close to moving a couple of times but each time we stayed because the overall costs involved, disruption to the business and the ongoing costs to keep things running meant the risks were too high. This time we were more established, had funds in reserve and weren’t reliant on finance. So how did that process work out?

Not having to rely on external funding and being more in control of dates was a huge help. We could focus hard on the refurb and physical move rather than satisfying the agenda of financiers. The property we bought was in good condition so we thought new toilets, a couple of new kitchens and new finishes to modernise it, would be all that was needed. Based on experiences of domestic refurbs we worked out budgets and went for it. However the final cost was actually 3 times our initial guesstimate from when we first started the purchase process!

Much of this was down to us wanting the working environment and facilities to be efficient, inviting and comfortable for our staff and visitors. Although a significantly large overspend, we figured it was worth the investment and to do it immediately rather than limp on with a set up which was just ‘ok’. Although it was painful and rather scary, that investment has been well worth it on a number of levels.

Firstly, our team feel valued and their time spent at work is respected. Secondly, it gives a great impression to visitors who can see we are an established outfit and are well set up for their work. I can’t say for definite it’s helped us win a particular project but it’s given everyone in the team more confidence and pride in the company they work for.?

Fortunately we have had our best ever year, we’ve grown significantly in turnover and profit whilst our team has developed strongly. However if it had been more challenging a year then HD not being over financed would have meant there was no extra pressure from having to pay off the finance. Personally I am comfortable in taking risks, but I don’t think it’s worth risking over 20 years of incredibly hard work by over stretching and ending up in trouble. With such a good year it’s easy to say it was worth it but we have been very lucky.

From the experience, there’s lots of general advice for anyone considering a move and refurb. Here’s a few things which come to mind:

1. Make sure your whole team are aware of your plans and are involved in the process.
2. This means ensuring they buy into a move to the new premises and so they can have some input into the new set up and refurbishment.
3. Make sure you have enough cash around or can quickly access more decent value finance.
4. Be patient - there will always be another property which comes along if the one you want isn’t 100% right for your business.
5. Be financially prepared for delays and overruns.
6. Create a detailed plan for all activities required to prepare the building for your specific needs
7. Create a detailed plan and fully prepare for the physical move. This means ensuring your team are fully aware of what needs to be done, when and who is responsible for it.
8. Be brave, get your team involved and go for it!
9. Obtain feedback from your team once settled in, make sure snags and hassles are sorted quickly.
10. Take time out to celebrate the achievement, everyone’s efforts and appreciate that a move involves everyone in your team.

There’s obviously lots more to consider so please get in touch if you need any advice from our experiences - or you need help with our area of expertise - Medical Device Development.