Risk is fundamental to entrepreneurship, but you must be aware that your risks are yours to bear and it is up to you to understand the nature and degree of risk you are taking.
You should not invest in any business unless you have conducted your own thorough due diligence and you are prepared to sustain a total loss of the money you have invested plus any interest or other transaction charges.
Purely by way of example, and not as an exhaustive list, here are some potential sources of uncertainty in our analysis:
- Rental value (assessed): based on Valuations Office Agency National Non-Domestic Rates assessment (i.e. the official, but not necessarily market-related, valuation) and may differ substantially from that offered by a landlord;
- Implied rates: based on the standard business rates multipliers (i.e. before any exemptions or reliefs for which the business may qualify);
- Employment costs and numbers: based on the Employment Density Guide produced by the Homes & Communities Agency, complemented with data from the Office of National Statistics on regional salaries; this assumes a particular salary point and number of staff that may vary significantly from the needs of a particular business;
- Estimated breakeven: based the ratio of Rent + Employee Costs as being about 20% of total business input costs; given the uncertainties in the source data, and the extreme variability in business requirements, this can only be a guide;
- Revenue: based on a calculation of business profitability derived from ONS Gross Value Added and then apportioned to properties by the estimated number of businesses; the apportionment approach means that business revenue approaches an average which will not take into account businesses that are highly profitable, or those which struggle;
- Occupation status: based on individual responses from Local Authorities declaring whether properties are occupied and is, in many cases, extremely lagging - meaning that properties listed as empty may already have tenants, and vice versa; not all Local Authorities are prepared to publish such data, and not all such data is of high quality;
In all cases, use your discretion and common sense when evaluating our analysis, and review our Frequently Asked Questions for further guidance.
Note: This website and the information provided to you has been prepared solely for informational purposes and should not be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any rental property or business activity. The data and analysis are based upon, or derived from, information generally believed to be reliable, although no representation is made that it is accurate or complete and Whythawk accepts no liability with regard to the user's reliance on it.