This month we focus on the reasons to buy your business premises and we meet our latest square pegs Troy Carelse and Hilikia Jacobs.
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Buying your premises: good for business, but also for the heart

Business decisions should almost always be based on careful calculations and not mainly on emotions, but that doesn't mean that matters of the heart should be ignored. When it comes to the question of whether to rent or buy business premises, there are powerful psychological arguments in favour of buying, says David Morobe, regional manager at Business Partners Limited (BUSINESS/PARTNERS).

The pure business case for buying premises for your business as opposed to renting is well known (see article). In the longer term it works out cheaper, and minimises the risk of losing the goodwill that you would have built up in a particular spot when the landlord wants you out.

But it is plausible that the psychological aspects of owning your own business premises also hold powerful advantages for a business owner, says Morobe. It happens time and again that business owners who rent their premises for years suddenly clean up the yard when they buy the place. The workshop gets a good make-over, the signage is renewed and the whole business sparkles with a new lease on life.


The top five reasons to buy your business premises

Renting your business premises from a landlord makes a lot of sense when a business is young. Even though most entrepreneurs start out with loads of optimism, nobody really knows just how big a premises they will need or will be able to afford.

But as soon as the worst of the start-up days are over, the business case for owning your own premises becomes overwhelming, says Shane Padayachy, area manager at Business Partners Limited (BUSINESS/PARTNERS), who outlines the top five reasons:

Your business escapes rental escalations

To the certainties of death and taxes, you can add rental escalations. Your rent will go up every year, and most probably by a rate higher than inflation. It means that the longer you rent a premises, the more expensive it is going to become for you to be there.

July 2016 / Vol.7.7


Are you a
square peg?

This quiz is not scientific but serves to highlight some of the key attributes of entrepreneurs or “square pegs”, as we at Business Partners affectionately call them. The quiz should give you some idea on whether you “possess” entrepreneurial qualities, or not. However, please remember that a positive outcome/score is not a recipe for success.

Take the quiz

Ace entrepreneur pulls through after hair-raising start

Ten years ago Troy Carelse was going through an agonising wait. He had resigned from his high-powered corporate job, he had a mortgage to pay and two sons to put through university, and his financial survival depended on the success of his application for finance to start a factory from scratch.

“I hit the roof,” says Carelse of his reaction when the call finally came from Business Partners Limited (BUSINESS/PARTNERS) to say that his application for no less than R8 million had been approved so that he could start his own foam rubber factory.

He had staked his whole career on this one business plan, and Carelse admits that it is highly unusual for a financier to invest any money in a business that has not been started yet, let alone R8 million. Even by the standards of BUSINESS/PARTNERS, which prides itself as the leading risk financier in South Africa, backing a business purely off plan was extraordinary.


Difficult but exhilarating journey from employee to entrepreneur

When rumours of retrenchments start circulating in a corporate environment, they herald some of the worst times in many people's lives, but for three engineering colleagues working at the South African subsidiary of an international electronics firm, it turned out to be the start of one of the most exciting periods in their lives.

Four years ago Michael Jele, Hilkia Jacobs and Cliff Aylward, three telecoms engineers who had known each other since their apprenticeship days, were facing certain retrenchment. The multi-national firm where they had worked all their lives was shutting down its telecoms network-engineering division because globally it was not profitable enough, despite very good prospects in South Africa.

Today the three friends run a thriving telecoms firm, BlueTel Communications, employing almost two dozen highly qualified engineers and are fast making a name for themselves...

Industrial Park
Location: 289 Grahamstown Road, Deal Party, Port Elizabeth.
The park is located within 15 minutes of the Coega IDZ, 20 minutes drive from the PE CBD and within 1km of the N2 off-ramp.

Description: 598m² space available to let (Unit 3), it can be used as warehousing facility or factories.

Sharon Lines
041 367 1082

Office space to let
Location: 60 Sir Lowry Road, Cape Town. Located near to Cape Town CBD, N1 and N2.

Description: Three units are available to rent: 160m², 142m², and 88m²

Adnan Chogle
021 464 3658

Aldo Park
Location: Greenbushes Industrial Park, Gate 2, Old Cape Road, Port Elizabeth

Description: 598m² space available to let (Unit 9). The unit consists of one garage door with access to factory, an open plan reception, offices, toilets and showers. It includes 24-hour security with guards at the access point and electric fencing.

Rent:R28 800.00 excl. VAT pm (Prepaid 3 phase power & water charged separately)

Sharon Lines
041 367 1082
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