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Choosing Premises for a New Business Reading Answers

Bhaskar Das

Jun 16, 2026

The answers for "Choosing Premises for a New Business" include 6 questions and are part of the assessment framework for the IELTS General Reading test. Candidates are allotted 10 minutes to complete the reading responses concerning "Choosing Premises for a New Business." This portion of the IELTS reading exam consists of various question formats, including Choose NO MORE THAN TWO WORDS from the text.

The answers for "Choosing Premises for a New Business" offer a comprehensive overview of the passage. The passage explains the important factors small businesses should consider when choosing premises. Although cost is a major concern, selecting the cheapest property can harm a business in the long run, while overspending for image can also be risky. Key considerations include location, size, accessibility, and future growth potential. Businesses should also think about flexibility for expansion and check legal, landlord, and planning restrictions before making decisions. For additional practice with similar reading assessments, candidates can refer to the IELTS Reading Practice Test section..

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Choosing Premises for a New Business Reading Answers

Topic: Choosing Premises for a New Business

What you need

Three factors dominate the priorities of small businesses looking for premises: cost, cost and cost. Nobody ever has enough money, so there is an overwhelming temptation to go for the cheapest property. It is a mistake that can take decades to rectify - and even threaten the future of a promising business.

Ironically some firms swing too far in the other direction, committing themselves to a heavy initial outlay because they believe in the importance of image - and that does not come cheap.

Finding the right premises is the real secret. That can, and will, vary enormously according to the type of business. But there are some general rules that apply to any operation.

Location

High street premises are important for shops which rely on passing trade - but these are expensive. Rents fall quickly within a few metres of main roads. Offices, however, need not be located centrally, particularly if most business is done on the phone or via email.

Manufacturing and storage relies heavily on access. Think about how vans and lorries will deliver and collect goods from the premises. Nearby parking can be important for staff, and public transport can be even more so, as traffic restrictions tighten.

Size

This is a crucial decision. Health and Safety laws provide basic guidance on how much room is required per office desk or manufacturing operation. But remember to allow for growth.

Growth

Every small business aims to become a big business, but this prospect can be obstructed if the wrong decisions are made early on. It is important to consider flexibility from the start. Can a building be physically altered internally by knocking down walls or by extending outwards or adding extra floors? Is there spare land next door to expand later if necessary?

Landlords obviously have to agree to any changes so it is important that the contract includes details of what will be allowed and how much extra will be charged on top of the costs of rebuilding or alteration. Planning rules must also be considered. Local authorities are not always open to discussion about the future of premises. They may have rigid rules about increasing density of development. The building may be in a conservation area or near housing, in which case it will be much more difficult to consider changes.

Questions 15-20

Choose NO MORE THAN TWO WORDS from the text for each answer.

15. Some people choose expensive premises because they want to create an impressive …………….. for their company.

Answer: image

Supporting statement: “committing themselves to a heavy initial outlay because they believe in the importance of image”

Keywords: “importance of image”

Keyword Location: Paragraph 1, Lines 3-4

Explanation: Some businesses spend more money on expensive premises because they think a good image is important for attracting customers and improving reputation.

16. Businesses which depend on ………….. need to be on or near the principal shopping areas.

Answer: passing trade

Supporting statement: “High street premises are important for shops which rely on passing trade”

Keywords: “rely on passing trade”

Keyword Location: Location section, Line 1

Explanation: Shops that depend on customers walking by need premises in busy shopping areas to attract more visitors and sales.

17. Businesses which produce goods must check there is …………….. to the premises for delivery vehicles.

Answer: access

Supporting statement: “Manufacturing and storage relies heavily on access.”

Keywords: “relies heavily”, “access”

Keyword Location: Location section, Line 3

Explanation: Businesses producing or storing goods need proper access so delivery vehicles can easily load and unload goods.

18. When choosing a building for your premises, find out whether ……………… could be removed to create more room.

Answer: walls

Supporting statement: “Can a building be physically altered internally by knocking down walls”

Keywords: “knocking down walls”

Keyword Location: Growth section, Line 3

Explanation: Before selecting premises, businesses should check if walls can be removed to create extra space for future expansion.

19. Make sure that the …………………. states what type of building alterations might be permitted.

Answer: contract

Supporting statement: “it is important that the contract includes details of what will be allowed”

Keywords: “contract includes details”

Keyword Location: Growth section, Line 5

Explanation: The contract should clearly mention what changes or building alterations the landlord will permit.

20. If business premises are located close to ……………….. extensions may not be allowed.

Answer: housing

Supporting statement: “The building may be in a conservation area or near housing”

Keywords: “near housing”

Keyword Location: Growth section, Final Lines

Explanation: If premises are close to housing areas, authorities may restrict extensions or changes to the building.

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*The article might have information for the previous academic years, please refer the official website of the exam.

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