Once an entrepreneur gets their company up and running and begins to experience success, the next big challenge is finding an office space from which to conduct their work. It is a big commitment for small businesses and there are many important factors to consider, such as the location and whether or not renting an office space will eat up all your profits. Here are three questions to ask yourself when starting the search for your first office space, as outlined in the article “Office Space – The First hurdle for any Entrepreneur”:
#1 Can I afford it?
Obviously one of the most important things to consider when looking at an office space is the cost. Look at traditional office spaces as well as unconventional spaces, such as plug-and-play options, sharing a space, or subleasing. Do not fall into the trap of overestimating the growth your company will experience, which could really cost you in the long run. Be prudent and only rent exactly as much space as you think you’ll need. To avoid getting locked into something, try to negotiate for shorter lease terms, such as a one year lease with an option to extend to three years or rent adjacent space if your business experiences a growth spurt. Don’t forget to factor into your budget the cost of utilities and maintenance. You can never be too careful when making sure that you fully understand all of the charges you will be responsible for and planning for them in your budget– and of course make sure that everything is documented in your lease.
#2 What is the best location?
The location you choose might often be dependent on your budget. It might be in your best interests to rent an older space in the suburbs of the city, rather than a new space or office downtown–but make sure this does not interfere your customers or clients reaching your business. Another factor to consider is convenience for employees. Can they make it to that location? Is it safe and secure? It is important to your employees will be reasonably happy in your new space.
#3 How much space do we need?
When considering how much space your business needs, consult your business plan. Look at your total number of employees or your projected number of employees if you’re anticipating growth and new hires and plan space according to this number. To maximize your use of a small space, consider having mobile workers or flexi seating. Perhaps your employees can cut down on space and equipment by working from their own laptops or working from home some days.
Consider these three questions if you’re thinking about moving into your first office space!
If you’re trying to calculate square footage for your business, give a DDI Commercial real estate broker in Kansas City a call at 913-685-4100 and we can help you determine how much space your business needs!