Choosing an office space is a hugely important decision for your business, and can have a major impact on your business’s success and financial state. The first step in choosing a location is to determine your business’s needs, allowing you to quickly evaluate properties and decide whether or not to pursue them based on if they meet your business’s criteria. The next step in finding a commercial space involves taking a look at what you can financially handle:
Evaluate Your Budget
Besides determining what kind of space you can afford, there are a few other financial considerations to be aware of:
- Hidden Costs – Spaces are rarely ready for your business to move right in. These hidden costs might include things like repairs, decorating, technology upgrades, etc.
- Taxes – Make sure you are aware of the income and sales tax rates for that state. Are there property taxes you will have to pay? Could locating your business across a nearby state line save you some money in tax payments?
- Government Incentives – Often there are government economic business programs in an area that can provide you with state-specific loans for small business or other financial benefits.
- Minimum Wage – While there is a set federal minimum wage, many states have a higher minimum wage in place. You can determine the requirements for your state by looking at the Department of Labor’s list of minimum wage rates by state.
Being aware of unexpected costs and what your budget can accommodate is an important step in determining if a business location is a fit.