Looking for premises for your stationery business? Read this first!
Last August, we moved from a serviced office, to a newly built warehouse. We needed more space, couldn’t do another Christmas out of boxes, and needed a ground floor premises for pallet access. I barely regret anything in life - it’s just not my thing, but I do regret this move. I wanted to share the precious learnings I’ve made from our decisions here because, well, nobody was there to hold our hand.
Moving premises can make, or break your business. A wrong decision can put pressure on your business like no other. Here are some of the things we’ve learned as a paper products business.
Paper products need stored in very particular conditions.
Just after signing our lease, we had a conversation with a fellow stationery publisher who mentioned keeping the paper dry. We heard it was bad, we just didn’t realise how bad. Humidity for paper goods has to be at a maximum of 55%. Our warehouse sits at 70-85% humidity when there are no dehumidifiers on. We still cannot get it lower than 60% for most of the year, so products have to be stored away in their boxes - which means packing hasn’t got any easier. Printed tape needs stored in warmth, due to the gum. A warehouse is not conducive to these conditions; heating one, is extortionately expensive, and unsustainable, and keeping one dry means you need industrial dehumidifiers, on 24/7.Think about what you’re doing most of the time
We do not use a fulfilment business, as control over the packaging and quality, is our thing. It’s something we receive lovely comments on all the time. This means at any one time, someone is sitting, folding cards, and wrapping planners. This person needs to be warm in the winter and cool in the summer. Warehouses are absolutely freezing until May (you are packing in thermals and puffy jackets and gloves), and then due to lack of insulation, they suddenly (especially the mezzanine) become unbearably hot. The solution to either of these problems is again hugely cost heavy and very unsustainable. You can build an office inside your unit, sure, but be prepared to outlay huge amounts of cash. They are far from a comfortable office or studio and the size of heating/air conditioning unit you need will cost you at least £10,000.Get somewhere with basic facilities such as a kitchenette
Sounds silly as you would think it would be easy to get one fitted - but again we’re talking another few grand. That’s grands out of your product-buying cashflow you just don’t need.Light
Light was very important for us in getting a new place, so our original thoughts about the warehouse skylights were positive. The problem is, they are overhead, and nothing like windows. It’s like trying to work on your computer outside - exceptionally bright. This is also a problem with UV sensitive, uncoated stock (tends to be the more sustainable stuff)…it can bleach easily if left in direct light - which in our warehouse, is almost everywhere, bar a small alcove.Business rates
We asked, and asked again about whether our unit was eligible for business rates - to which the answer was always no. Then there was a national re-evaluation in April this year which has doubled the property’s valuation and thrown us a huge rates bill. The UK gov are trying to better redistribute the burden of rates away from the high street and place it more into online retail which means warehouses have been hit. Be mindful of this cost and that it will be reevaluated every 3 years nationally. Get your agents to set, in writing, whether it’s liable; even then - calculate for worst case scenario because you could be talking an extra £1000 on your rent bill.Ground floor access
We had a problem in our previous premises in which pallet deliveries or preparations were horrendous. You had to do them out on the step in the lashing rain, often. If you fufill your own orders, make sure you have access - or a goods lift for such purpose.Lease Length
It obviously suits landlords to try and persuade you in to 10 year leases, but in today’s world - that’s crazy, in my opinion. The world changes too fast to commit to something so hefty for so long, so push back! It’s important to pay attention to your lease length, because getting out of a lease is nearly impossible, unless you want to pay huge estate agent fees and try to find someone who will take the lease.
There are so many things to consider when choosing premises for a stationery business - but hopefully these points will help. We’re putting our warehouse back on the market, and will try to find something warmer and insulated on a ground floor for our lovely paper goods.