Expanding your Business: 3 Things to Consider

Many business owners hear the term expansion and assume that we are talking overseas, and yet expanding even within the same town carries many different duties with it. For a start, there is finding the right property and deciding what makes it a good space to expand to.

New office space

There are different factors which will affect what kind of property you might want to go into, such as its location and proximity to conveniences for staff. This makes the building seem more attractive to staff and can help with longevity.

Buy or rent

When it comes to finding industrial property, you will need to think hard about whether to buy or rent. Ultimately, renting affords more freedom, since committing to a buy, particularly in the early stages, can be daunting and you might not be sure as to expansion needs. In either case, many industrial properties to rent will carry a long term tenancy. Whichever space you decide you’ll need for your growing business, we’ve prepared a few questions about what exactly you are looking for, to help you think it through first.

Location, location, location

One of the most important things about procuring property for your expanding business is the location. For example, is it accessible by bus routes or will staff need a driver’s license to work there. In terms of accessibility, there are further questions you’ll need to ask, including the logistics of goods being delivered and/or collected. How centrally located in the country does it need to be? Is it near a motorway? Are there amenities close by to ensure staff can easily pop out to get lunch? These are all things that can contribute to finding the right industrial unit for your business.

Office or warehouse?

Once you’ve decided where to go, and found a place with decent accessibility for both staff and couriers, you will also need to think about what type of physical space is going to be best.

As an expanding business, you’ll need to consider what space might be needed further down the line. Are you looking to grow your workforce, and if so, where will you ‘house’ them all, in terms of office space, meeting rooms and other facilities? A popular idea for this is to lease a space that has a little surplus and sublet desks or smaller rooms until your business, and therefore workforce, has grown substantially enough to accommodate the whole building.

Takeaway

While you’re considering the above factors, make sure that you focus on practicality.  Ask yourself these questions: “Is buying this space the best decision for I can make for my company?” “Is it necessary to setup an office in city centre?” “How big would my company be five years from now?” – and more questions that you should ask yourself before deciding on anything.

The idea of doing the above is to make a well-informed decision, rather than deciding based on hunch, gut feeling or any other (groundless) predictions.  It’s the future of your business we’re talking about!

This post is a collaboration with Andre Jackson, writer and finance enthusiast.

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