Starting up a business can be exciting. There are a number of people that are opening up their own business. Based on information from the Global Entrepreneurship Monitor, as much as two-thirds of Americans are thinking of opening up their own business. They think it is a wise career move.
There are as many as 27 million entrepreneurs that have started a business or are about to start up a business.
These people are working from many locations including their homes, cafes, workplaces, and even their garages. Others are getting commercial space to allow their business to have additional credibility.
Is leasing space a good thing to do early in the business? This is not always wise. if you want to leave your own office space you should take a couple of minutes and look over these five important questions.
1. How much will it cost?
When you are looking to lease space for your office, the cost per square foot is something to consider. It is going to cost money each month to have this space. There are some additional costs that go along with this office space in addition to the lease or rent.
They include:
- Insurance for your business and assets
- Liability coverage
- The cost of supplies
- The cost of electric
- Office furniture and decoration
- Utilities including water and waste removal
- Maintenance charges may apply
The overall thing that you need to take away is that office space is an additional expense and something that will have an impact on your profits. This is important to consider when you are looking to raise your capital.
It takes more time to see a profit than most people think. Richard Dean who is the managing director at Caffeinated Projects recommends planning ahead for these expenses and look to buy office furniture online to save on the overall cost.
2. What is your projected growth?
The length of a lease for a private office will vary. It will range from terms as short as three to six months to long term which can be several years. Commercial properties owners often do not want their businesses coming and going. This can have people view their properties in a negative manner.
You need to think about how much your business is going to grow before renting office space. Your business may explore or it may do nothing. If you enjoy the success you will need to add staff members.
If you think you need a private office space to think about how much space you are going to need. You do not want to be locked into a lease where you will not have enough room to grow and expand.
3. Will private office space help your bottom line?
This is something that needs to be carefully examined. If your business idea will not help with a profit then you do not need it.
Is your business going to benefit from private space? Will it improve your workflow and client experience?
Commercial space can add credibility in the eyes of the public as well as investors. Is this really needed during the startup phase? Do you need it for your business or do you need it to boost your ego?
Andy Hughes who is the CEO of the PBN Pilot warns people to keep their ego in check and to not get cocky. There is always going to be someone more successful.
4. Is privacy needed for the business?
Every business needs some privacy to operate. You will be working with client records, taking phone calls, and storing personal information of employees.
Office space only allows for private meetings with clients. Some clients will prefer to work in private and do meet in a public place.
Office space will allow both hard and electronic records secure and safe. If security is not a big concern you may be able to operate in a less secure area.
5. How will office space affect the workflow?
Having a private office can bring people together and change the way that your team works. It can also change the way employees work, change the way reports are done, and change the way that people communicate with each other.
This may not be a bad thing. There are many benefits to having the employees in all one place. This may help out the workflow but you will need to plan accordingly.
If working in one place will bring your team together and reduce any errors that are made during the startup this may not be a bad thing.
If you know your business is going to need an office space then you should begin to search for space. This may have an impact on your workflow. It may also help the progress you are making and will help increase the flow of your work than office space may be a good idea.
Office space should not be treated as a search for a dream home. You need to look at the features that you need to have for your business and how it will have an impact on the growth. This will help you make your choice for a location and if you really need this space.
