I have an idea for a business and would like your thoughts on its viability .I have not fleshed it out yet but in a nutshell I want to :
1. Find Offices of whole factories near good transport links that have been lying empty for years.2. Contact the landlord or owner telling them I can find them multiple tenants for their large empty unwanted building and suggest that we work in partnership sharing the rental income 50:50,all they need to do is provide the building,maintain it and pay the rates.3. I would carve out workshops and offices at no cost at all by marking out lines on the floor.I could hire out p/t receptionist,secretary and tenants could pay as they use their services.A commercial estate agent could find tenants and mange it for a fee which leaves me with next to nothing to do.What are your thoughts on this ?critique it so that I can sharpen the idea.Regards,EastfieldServcorp? and others (but not aware of any doing factory space).
But seriously – unless you leased the property off me at a below market rent and had a turnover clause, strong makegood provisions and a decent bank guarantee in place you won't get too far.
I don't particularly care what you do inside the leased space, provided that it is legal however as this would require fire safety compliance, council approvals (there may be a zoning conflict with what you want to do).
Agents managing serviced offices charge like wounded bulls – this is best done in-house (r e licence is required for onsite property manager).
What accounts are classified as Factory Overhead?On a Cost of Goods Statement other that Indirect materials and indirect labor, what other listings are classified as factory overhead??? What about Factory Rent, Heat, Light and Power, Land, Factory Supplies, Factory Supplies Expense, Prepaid Factory Rent, and Depreciation on Factory Equipment?
Vijay, most of the costs you have listed above are the costs of operating the business occupying the premises not of owning the premises – building insurance, land tax, rates, sewer charges, building management, plant maintenance are property costs, heating/lighing/materials/supervision/stock/materials etc are costs of the occupant making goods/services to pay for rent & other inputs.
SNM
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