New Business? How To Make Sure You Choose The Best Possible Space To Help Your Company Succeed

Starting a new business venture is always exciting, especially when it is your entrepreneurial labor of love. Unfortunately the process of growing a new business from an idea into a profitable company also creates many obstacles that must be overcome. One of the most important of these problems is that task of finding a suitable office space that is both affordable and and suitable for the business you are growing. If your new startup is ready to move from your kitchen table to a place of its own, the following tips will help you choose the right commercial office space for your needs. 

Set an affordable leasing budget and stick with it

If you have been working from your home or a small, inexpensive month-to-month rental, you will need to re-assess your budget carefully and decide what amount can be used to cover the monthly expenses of leasing permanent office space. To reduce financial stress, make sure that you also set aside room in the budget to comfortably cover any additional expenses that will be associated with the move, such as office furnishings, signage, moving costs, and any renovations the new space will require to suit your company's needs.

It is important to keep these expenditures within the confines of your company's current actual income and resist the temptation to use future income projections to determine the amount of the lease you can afford. This will make sure that your company's lease payments for office space never encroach upon other key budget areas, such as payroll, marketing, or research that are vital to its long range growth and health. 

Lease enough space to handle expected growth needs

As your new business grows it will become increasingly complicated to relocate as it becomes larger and employs more and more people. By planning ahead now to accommodate your space needs for at least the next few years, you will be able to keep your focus on growing your business instead of spending too much time searching for new, more expensive space, negotiating new leasing arrangements, and navigating the disruption that comes with moving an established business.

To determine an approximate amount of office space you will need for projected growth over the next two to five years, look carefully at staffing changes you expect to make during that time, and make sure that you can accommodate them in whatever space you initially choose. Instead of trying to find a space with enough spare offices for future growth, look for a less expensive space that can be easily adapted instead. A large open space that can be quickly and inexpensively configured into multiple work spaces through the creative placement of pre-fabricated cubicles or the use of temporary partitions and privacy screen is often the best value. 

Be Ready to Negotiate Leasing Details

As a new business, being fully prepared to meet with commercial leasing agents and building owners will help you demonstrate that you are financially prepared to handle the responsibilities of being a commercial office space leasee. To do this successfully, take time to put together all the financial documentation you will need, including:

  • business tax returns 
  • bank statements 
  • financial references 
  • bank letter of credit in the amount sufficient to cover at least twelve months of rental fees or bank letter attesting you have that amount of available cash on hand

In addition, it can also be very helpful to include a brief overview of your company, including a bit about your product or service, your clients or customers, and your expected growth. These details can be especially helpful when dealing with a prospective commercial leasing agent who also owns their own building because it allows them to determine how your business could positively affect other leasees in their building and avoid potential conflicts of interest among their tenants.