Overview
Deciding on where to base your studio or office can have a big impact on your creative business. A variety of factors can influence your decision, including what you can afford, availability and whether you have any specific requirements.

It is important that you are happy and productive where you are as you are likely to spend most of your working hours there. This factsheet highlights some issues that you should be aware of when choosing your premises.

Identify your requirements
Before you begin your search, it is important to make a checklist of your requirements, as identifying your priorities will help make the process more efficient.

There are a number of basic factors you might consider when making your lists, such as what do you plan to use the space for and how much square footage do you need? Do you need water and gas supplies or a good source of light?

If you are using machinery you will also need to consider whether you’ll be able to get it through the door or window and whether the floors are strong enough to take its weight. Other factors include:

• Location: In terms of geographical location, consider how far you want to travel to your home or to your clients or suppliers. Also, how far do you want your clients to travel to you? When considering location you may find there are grants available in some boroughs that you can access, or that council rates are cheaper in some areas.
• Work on your own or with others? Do you want to work on your own or with other creative people? If it’s the latter you could look for a studio or incubation space with other similar creative people who could help share the costs. Working with other creative people can also offer support and help with generating ideas and learning best practice, as well as offering networking opportunities.
• How much can you afford? Take into account not just the rental or mortgage repayments but also all the running costs such as business rates, electricity, water, heating, insurance, service charge and any legal agreements. Once you have done this you have your budget and can work from there.
• Are you eligible for any subsidies? Professionally run studios, managed by arts organisations, often offer special rates for business start-ups, or allow clients to rent space and equipment from them on a daily basis. Some workspaces are serviced with a receptionist or secretary, and some will give you access to meeting rooms and other amenities.

What type of space are you looking for?

• Professionally run studios: These often provide administrative support and training opportunities. They tend to run open studios to allow the general public, trade and press in several times a year and sometimes this will be a condition of your contract. In these cases it is important to consider whether the type of people visiting the studios are likely to want to buy your work and whether you want to open to the public.
• Setting up a co-operative: This is bringing together a group of creatives to hire or buy a shared workspace. It is important to have a solicitor draw up a contract for each person involved to sign, and to ensure it runs smoothly you should draw up a set of house rules that everyone agrees to and have regular meetings. Open a group bank account and allocate one member to be responsible to manage all the bills. It is also advisable to have a place to meet clients and have some business training in order to manage the co-operative effectively.
• Individual workshops: If you would prefer to work on your own, you can also hire an individual workshop. The easiest way to find them is usually through word of mouth so let everyone know that you are looking. Very often these are also advertised in arts, music and design magazines.

Legal Issues

What to find out from the leaseholder
It is important to get as much information as possible from the leaseholder before you make a decision. For example, you will need to know if you have to sign a lease and how long it is valid for, whether the rent includes heating and lighting, and what additional costs there might be.

You also need to ask who’s responsible for repairs and whether there are any restrictions on the type of equipment or materials you can use. Find out how secure the building is and if you can have 24-hour access. Other considerations include:

• Do they offer any administration or training support?
• Do they open to the public and if so is it compulsory to take part in open studios?
• Are there any noise restrictions?
• How will you be able to heat the space?
• How much are the business rates?

It is also a good idea to speak to other tenants about their experiences of working in the building to find out if there are any issues you should be aware of.

Tenancy agreements
You may need to have a lease or tenancy agreement drawn up by a solicitor, if the leaseholder does not provide you with one. It should cover how long the agreement will last for, who is responsible for any repairs and additional costs, and any additional points that are important to you. It is advisable to check with the local authority that the workshop you want to lease has planning permission to be used for this purpose. If it doesn’t you will have to submit an application.

Working from home
The alternative to leasing a space is to set up a workspace at home. However, there are a number of factors that you should consider before making a decision.

Planning permission and insurance
This should only be necessary if your business activity impacts on the character of the property by undertaking major structural changes, creating noise and fumes, regularly employing other people or having customers constantly visit the premises. It is always advisable to discuss your plans with the local council and they can advice you of any restrictions and how you can manage these.

You need to check if planning permission will affect your house insurance, not doing this could result in your policy becoming void. Unless your creative processes increase the level of risk through the use of chemicals or machinery, it is likely that your premium won’t increase. You will also have to ascertain if you can apply for business insurance if you are working from home.

Tenancy agreement or mortgage, plus business rates
Does your tenancy agreement, lease or mortgage allow you to run a business from your home? Check that you are not breaking the terms of agreement, or it could be terminated. If you are working from home and the property is classified as residential you do not have to pay business rates but you will need to pay council tax.

Will you be able to open the workshop to the public?
Will you be able to invite customers? Does it look professional, is it easy to find, accessible and is it safe for members of the public regarding chemicals, equipment and machinery? If it isn’t you also won’t be able to take advantage of the ‘open studio’ seasons, which are an effective sales opportunity, especially for designer makers and artists before the Christmas period.

Will you feel isolated?
Will working on your own all day suit you or will you feel isolated and lonely? This is one of the main reasons cited for small business owners moving back to employment. Also, will you be able to achieve a work/life balance? Will you find it difficult to set boundaries? Will friends and family regularly visit you during the day because you are ‘not at work’?

Claiming costs for tax purposes
Be aware that you can claim a ‘reasonable’ part of your home costs such as light, electricity and rent. You have to explain to the Inland Revenue how you have come to this percentage; you might want to measure your workspace in relation to your total space and also take into account the time actually spent in this space working. Be aware that if you claim home costs from the Inland Revenue you will become liable for capital gains tax. A good accountant will be able to advise you if claiming costs is the best option for you.

Health and Safety
What are the Health and Safety regulations that are applicable to your business and does your home comply?

Where and how to find suitable workspaces?
There are a number of ways you can find out about workplaces that will suit your requirements, these include:

• Word of mouth-– recommendations from other creative people are invaluable
• Regional Development Agencies in England can provide grants for converting redundant rural buildings for commercial purposes
• Advertisements in local papers, or magazines such as ‘Crafts’ magazine produced by the Crafts Council, Artists Newsletter, Design Week
• Local Boroughs very often publish a list of their workshops online
• Specialist creative industry websites and newsletters, such as the Cultural Industries Development Agency (www.cida.co.uk), visual arts organisation (www.Artquest.org.uk)
• Specialist workshop providers such as Workspace, Urban Space Development, Cockpit Arts, Clerkenwell Green Association, Space Studios

Further information
Check out CIDA’s Creative Space Agency website for an up-to-date list of vacant spaces as well as further handy factsheets.

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