Moving out of the garage: the money side of your first business premises

Every small business that starts at the kitchen table or in the garage eventually hits the point where it needs a proper home. A workshop with room for the machines. A shopfront customers can walk into. A studio clients can find. Moving into your first premises is a milestone that signals the business is real — and it permanently changes your cost base. Here’s how to handle the money side well.

Why the first move is a bigger leap than it looks

Working from home hides costs. There’s no separate rent, the power bill is shared, and you can scale back without anyone noticing. Premises bring fixed costs that arrive every month regardless of sales: rent, outgoings, insurance, utilities, maybe cleaning and security. The question isn’t just “can we afford to move?” — it’s “can we carry these costs in our quietest month?”

The upfront costs

Cost	Notes
Security deposit or bank guarantee	Often several months’ rent — ties up cash or borrowing capacity
Advance rent	Sometimes the first month or more
Legal costs	Lease review and preparation
Council approvals	Change of use, building permits, signage approvals where needed
Fit-out	From minor tweaks to a full build — see fit-out finance
Equipment and furniture	What the new space needs that home didn’t
Signage	Often a significant and overlooked cost
Moving and setup	Removalists, IT, phone and internet connection
Insurance	Public liability, contents, sometimes landlord-required covers

Our fit-out budget builder helps add the fit-out lines, and the guide to budgeting a fit-out before you sign goes deeper.

The ongoing costs

• Rent — and any scheduled increases in the lease
• Outgoings — rates, building insurance, common-area costs, passed through by the landlord
• Utilities — power, water, gas, internet
• Insurance — business, contents, public liability
• Maintenance — your responsibilities under the lease
• Loan repayments — if you finance the fit-out or equipment

Get an estimate of outgoings from the landlord or agent before you sign; they can add meaningfully to the rent.

Check the site before you commit

Business.gov.au’s guidance on choosing a business location says to check with your local council about zoning — the rules that say whether you can run your type of business in the area — and permits or approvals you need, for example before you can fit out. It also compares leasing and buying, noting that leasing generally means lower upfront costs.

Before signing, also check:

• Power, water and gas capacity for your equipment
• Access for deliveries, customers and staff
• Parking and transport for customers
• Neighbours — noise, smells and trading hours that might clash
• Condition — what you’re inheriting, and what the landlord will fix first

Read the lease as a financial document

Lease term	Why it matters to your cash
Term and options	How long you have to earn back fit-out costs
Rent reviews	How and when rent rises
Outgoings	Extra costs on top of rent
Incentives	Fit-out contributions or rent-free periods reduce upfront costs
Make good	Cost to restore the premises at the end
Landlord consent	Time and conditions for works
Security	Bond or bank guarantee amount
Assignment	Whether you can sell the business with the lease later

Retail and commercial leasing rules differ between states and territories. Find out what applies where you’re leasing, and have the lease reviewed by a lawyer before you sign.

Weighing up a move? Talk to a specialist about funding the fit-out and setup — there’s no credit check to enquire.

Will the business carry the new costs?

This is the big one. Build a simple 12-month cash flow forecast with:

• Your current revenue, plus any realistic uplift from the new premises
• All new fixed costs — rent, outgoings, insurance, utilities
• Repayments on any finance for the move
• Tax dates — BAS, PAYG and super

Then look at your quietest month. If the forecast shows the business can cover everything with a buffer, you’re on solid ground. If it’s tight, consider a smaller space, a shared tenancy, negotiating a rent-free period, or staging the fit-out.

Illustrative example: A furniture restorer has outgrown his double garage. He finds a small industrial unit with three-phase power and roller-door access. Before signing, he confirms zoning with council, negotiates two months rent-free to cover the fit-out period, and forecasts the new rent and outgoings against a year of past sales. A dust extraction system and spray booth go on equipment finance; his savings cover the bond, legal costs and signage.

Funding the move

Need	Common funding
Bond or bank guarantee	Savings; sometimes a facility
Equipment for the new space	Equipment finance
Fit-out works (established business)	Unsecured business loan
Fit-out works (newer business or larger project)	Property-secured loan, $20k to $5m
Moving costs and first months’ buffer	Savings or a line of credit

If you’re opening for the first time rather than moving an existing business, see finance to open a small business.

Timing the move

• Overlap carefully. Paying for both home setups and new premises is expensive; plan the cut-over.
• Allow for approvals. Council and landlord approvals take time.
• Tell customers early. New address, new hours, a reason to visit.
• Keep trading during the move if you can — a weekend move protects weekday revenue. Update your Google Business Profile, website, invoices and email signatures on moving day so customers and suppliers are not sent to the old address.

A pre-signing checklist

1. Council zoning and approvals confirmed
2. Site capacity checked — power, water, access
3. Outgoings estimate received
4. Lease reviewed by a lawyer
5. Incentives negotiated
6. Fit-out and setup budget complete, with contingency
7. Cash flow forecast shows the business can carry the new costs
8. Funding arranged in principle

Questions to ask the landlord or agent

Before you negotiate, gather the facts:

• What were the outgoings for this tenancy last year?
• When was the air-conditioning last serviced or replaced, and who pays if it fails?
• What works will the landlord complete before handover?
• Are there any planned building works that could disrupt trading?
• Why did the previous tenant leave?
• Is there flexibility on the bond or bank guarantee amount?

The answers can change both your budget and your negotiating position. It’s also worth walking the street at different times of day and on different days of the week. Foot traffic at 10am on a Tuesday can look very different from Saturday afternoon, and neighbouring businesses are often happy to share how trade really runs in the area — useful evidence for your forecast and for any lender reading it. A landlord keen to fill a space that’s been vacant for a while may agree to a rent-free period, a fit-out contribution or a smaller security deposit.

Make your move with funding in place

Moving into your first premises is a proud moment. Make sure it’s well funded. Tell us what you’re moving into, what it will cost to set up and how the business is trading. A real person will suggest the right mix of equipment finance, a business loan and your own funds. There’s no credit check when you enquire, your enquiry isn’t parcelled out to a group of lenders, and clear, honest figures help us match you properly from the start. Get your premises move funded.