You’ve negotiated your commercial property lease, and you’re ready to set up shop. Or so you think. Understanding what permits you need and how to get them is a significant step in the retail journey. In the third instalment of this ‘How to Retail‘ series, Zelman Ainsworth, Director of Ainsworth Property, provides an explainer on licenses, permits and insurance in retail.
New year, new store. You’ve finalised your lease and are getting excited about welcoming customers through the door – but there’s one thing hanging over your head. Permits, licenses and council approvals can be daunting, especially for a first-time shop owner. Getting the right advice from the get-go can help mitigate massive time delays and misinterpreted licences, which can prove extremely costly.
Understanding all your commercial business requirements is a necessary step in the retail journey. Once you’ve begun your lease, you will want to move in quickly to avoid wasting rent. By now, you should have a clear idea of what the space is approved for and how you intend to use it for your business. Filing the required paperwork will help to ensure your success and longevity.
Permits and licenses will change depending on your business and location and can vary between states and industries. The Australian Business Licence and Information Service (ABLIS) is a good starting point to assess which licences you need to run and expand your business. Registrations will differ depending on if you are a sole trader, company, partnership or trust.
Understanding all your commercial business requirements is a necessary step in the retail journey
Once you’ve applied for the business registrations it’s important to think about the right insurance. This will protect your income, assets and provide personal indemnity and public liability. Workers compensation insurance is also compulsory for most employers around Australia and will cover you in case employees get injured or sick because of work. Contact a licensed insurer and compare quotes and what’s covered in the policy.
Jason Holmes, Director at retail design and construction firm TRG, explains the importance of mitigating your risk and getting a “health check” for your asset, keeping in mind landlord obligations and issues of compliance.
“You would not leave your motor vehicle un-serviced for years on end, the same should apply to your asset,” he says. “By maintaining the essential services, your property has an excellent foundation for a prolonged life cycle.”
If you’re a tenant, Jason recommends engaging a specialist to inspect the property and prepare the scope, design and budget before you sign the dotted line.
“Investment up front will identify and manage both time and cost risk, while informing the commercial negotiations for a balanced and coordinated outcome,” he explains.
Remember that a successful business is only as good as the approval and support.
