Having put your business plan together and secured initial funding, the next question that you will probably face is where you should locate your business.

In this regard, there are a few vital questions that you should ask yourself. Do you need a shop to sell your product or a warehouse? How big a space do you need, what rent should you be paying and what are your technological requirements?

All of these are questions that new firms must consider when starting up, according to Mr Pat Delaney, head of the Small Firms Association (SFA).

"Look locally first of all, such as your local community enterprise board, or any shared services building if you are running a service, so you don't rent the entire building or more space than you need," he advises. "It is best to start in a shared services building, as the administrative burden is shared, such as the cost of hiring a receptionist."

Once you have found potential premises, it is important to consider the costs associated with running it. These include electricity, telephone, heating and parking, Mr Delaney says.

"You should also ask yourself what type of communications and information technology do you need?"

Access to your customers is also vital, according to Mr Delaney, something which depends to a large extent on where a building is located.

This can have an impact on the rent - for example, a shop in Dublin's Grafton Street will cost a lot more than one located outside of the city centre.

Clearly, it is also important not to take on more space than you need. The location and quality of the building you choose could equally have implications for the amount of insurance you will pay.

"The lease is the next most important thing. It is a significant legal document," says Mr Delaney.

"Make sure it is signed off by a solicitor, that it is clear how long the lease is for, the amount of rent payable, as well as the cost of exit from the lease."

Other considerations include when rent reviews will take place - they are usually every three years, says Mr Delaney.

"But, as quick as you can, any business should be looking to buy, so that [ its premises] becomes an asset not a liability."

Recent years have also seen significant growth in the number of enterprise centres, which are available to entrepreneurs looking for a place from which to operate.

According to Ms Gráinne Ní Uid, who manages Enterprise Ireland's campus business incubation programme, every Institute of Technology and most universities will have business incubation spaces within two years or so.

Individuals pay rates for these spaces which are similar to commercial rents. Where they differ is in allowing individuals to rent anything from a simple desk with a computer upwards.

"It's not about the space, it's about the support which is offered," Ms Ní Uid explains.

"Individuals get mentoring, and help or training in developing their business plan, as well as access to information."

But is it necessary to have a premises at all?

According to Ms Irene Gahan of the Irish Internet Association (IIA), the professional body for those conducting business via the internet in the State, selling online can remove the need for the traditional "bricks and mortar" approach.

But there are other significant costs associated with running an online business which are worth considering, she says.

For example, hosting costs can vary depending on how sophisticated your site is.

Maintenance and updating of your website is another hidden cost, says Ms Gahan.

"You have to have a contingency plan in place. If your site goes down and the server crashes, you are not making money or sales," she explains.

"If you are an individual rather than a company, you can't be around 24/7. What happens if you are on holidays? If you are online, everything is 24/7."

Most sites also need an online payment system, which involves getting an account with a bank. This can be difficult for start-up companies.

You also will need a secure payment certificate, which can cost €300-€400, Ms Gahan advises.

Other considerations include marketing your product and ensuring you comply with EU regulations regarding how to sell a product - and dealing with spam.

Despite all this, there are significant savings to be made, she says. These include the cost of renting a space, manpower, printing and travel costs, as you can work remotely.

The type of online traders that work best are frequently those which do not have significant costs when it comes to distributing a product, she says.

Examples of such sites include those selling ringtones and CDs, insurance, and information such as that contained on news sites such as Ireland.com

"My advice is to research online and you can phone the IIA for advice," Ms Gahan says. "Look at what has worked and what hasn't worked."

Email comments and suggestions to: business2000@irish-times.ie