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3. Licensed Flexibility

A licensed office or workshop is the ideal solution for many start-up businesses. Usually the licence fee is paid monthly, and either the licensee or the licensor can terminate the agreement at a month's notice.

3.1 There are several advantages for start-ups.

• Simplicity - a licence is usually a simple contract which can be agreed quickly and without expensive solicitors' fees.
• Cost - some councils and Enterprise Agencies provide subsidised workshop units and business centre offices.
• Flexibility - as your needs change, you can usually take more or less space, or leave, without being penalised.
• All-inclusive - the licensor usually takes care of maintenance, rates, and most insurances, though the cost is sometimes recovered via a service charge.
• Services - reception and secretarial services are often part of the package provided. There may be a separate service charge covering these and other facilities.

3.2 There are also disadvantages.

• Lack of security - you have no legal right to stay in the premises, if the licensor has given you proper notice to leave. The licensor is also free to increase the licence fee at the end of the licence period. As long as you are a good licensee, the licensor will usually wish to keep you.
• Lack of choice - offices and workshop units are widely available, but the supply of other premises on licence is limited.
• Lack of flexibility - practical or legal restrictions may stop you from altering the premises to meet your own requirements. Nor is there much point in spending to improve premises you may soon leave.
• Neighbours - other licensees can cause problems, and may change frequently. Noise, dirt and smells from neighbours can all reflect badly on your own business.