Money Talks | Advice to get your New Shop Approved
Opening a new shop can be a daunting task if you’ve never done it before. It can also be complicated if it’s your third or 13th shop. Considering the volatile state of the Australian retail industry, it is especially stressful for people trying to run their own retail businesses. Other issues faced by retailers include finding the right shop, negotiating a lease, dealing with the landlord, fitout costs, employing staff and the growing threat of the online marketplace.
Considering retailers are investing so much time, money and effort into opening a new shop, it’s essential that the planning approval requirements are properly understood.
In 2012-2013 it took NSW Councils an average of 73 days to assess a Development Application (DA) for a commercial development. However, it took Councils an average of only 18 days to determine a Complying Development. It is therefore strongly advisable to check what type of approval (if any) is required as this will significantly benefit your business time frames and save you money.
1. Understand the Fast Track System
Did you know that not every new shop fitout requires Council approval? The NSW Commercial and Industrial Code permits low impact changes to shops to be fast tracked. Under this system, the proposal can either be considered Exempt Development (no approval necessary) or Complying Development (approval required by a certifier).
If the proposal does not fit in to either of these categories, you will need to lodge a DA which needs to be assessed by Council. The time frame for the DA process is unfortunately lengthy but it is often the only way to get your new shop open for business.
2. Check the Previous Approval
I recommend you check whether the previous business operating from the shop obtained planning approval. It’s imperative to check this because it will determine what type of approval (if any) will be required for your new shop. The approval may contain operational conditions such as the hours of operation, number of staff and customers.
3. Accessibility
In 2011 the Federal Government introduced strict regulations for shops to be accessible for people with disabilities. When inspecting the shop check if there is a disabled toilet, a ramp at the entrance and whether someone in a wheelchair could access all public areas including the bathrooms.
These regulations do not always apply to all new shop fitouts, however I recommend you obtain professional advice to establish whether they apply for your proposal. Not being fully aware of your responsibilities to upgrade the shop may break your budget.
4. Consider New Signage
Some signage can be installed without Council approval. If you’re planning to install new signage make sure it’s all covered in the proposed new shop. The last thing you need is to get the shop approved and then realise down the track that you want to add new signs.
5. Dealing with Real Estate Agents
When dealing with the real estate agent, remember they are only trying to lease or sell the shop as quickly as possible. Ensure you are well informed about approval requirements.
If approval is required, I recommend you negotiate a lease-free period while the application gets assessed. This is an essential step because it can take a long time for the new shop to get approved. The last thing you need is paying for an empty shop while your proposal is assessed.
6. Asking Council for Advice
I recommend you avoid contacting Council for free advice regarding your new shop. Sounds extreme? I’ll tell you why; You get what you pay for. Council staff are often bogged down with other customers and their own work, and they often don’t have the time to properly assist you. Some Councils rely on a roster system, so if you call Council in the morning and afternoon, you can end up speaking to two different town planners and receive two different answers to the same question.