Choosing the location of your company is important because it determines the visibility of your business. The decision also determines the profitability of your business because of the monthly rent costs.
Business owners often make major mistakes when choosing their first office space. The excitement of starting a business often gets in the way of making a sound judgment on such important matters.
If you are about to start a business or move your current business to a new location, here are the common mistakes you should avoid at all costs.
1. Compromising your business image
It is possible to consider all other aspects of an office space and forget the image of your business. At the end of the day, the location of your business and the outlook of your office space must give the right impression of your business.
Sometimes business owners consider the cost and forget about the brand image. The image of your business must come first when looking for office space and not the cost. Maintain the same impression or make it better to your clients even if it will cost you a little bit more than you expected. Do not shy away from shared office space if the rent rate is too high in your preferred location.
2. Ignoring brokers
In efforts to save costs or move fast, you may be tempted to go alone when searching for the ideal office space. Some people avoid brokers because of lack of trust especially after negative experiences with rogue brokerage services. However, brokers are very important in the real estate business. They have more information on commercial buildings that you can read about or get from the property owner. A broker will help you negotiate for the lowest rent rates possible.
Remember that the property owner covers the brokerage services and hence you will not incur any cost as a tenant.
3. Considering short-term needs
You move your business to a new location or building for a reason. It could be that you want to hire more employees, increase your product range, or you have issues with the current location. One of the biggest mistakes business owners make is to settle for an office space that meets their immediate needs. For instance, if you want to hire ten additional employees, you look for space that can accommodate them immediately. That is the wrong approach. Your business’ needs are dynamic and will be different in the year or even few months.
Have a futuristic or long-term perspective of the needs of your business. You can tell by the trend of business growth and expansion if you will require more space in the future. Have a similar perspective when inspecting the facilities in an office space. For instance, the internet and telephone connections should be scalable to accommodate additional employees in the future.
4. Underestimating or overestimating the required space
How much space do you require for your business? Answering this question is difficult when starting a new business because you are unsure about its rate of expansion. However, you can make the right estimate as your business expands. The best approach is to start small and expand as your business grows.
Consider all the equipment and furniture that your business will require at first and create space for each. Consider the highest number of employees you will have in the first year or so. The disadvantage of overestimating the space is that your business will incur a higher rent rate than necessary. A smaller space will force you to move soon after settling.
5. Moving too fast
Getting the ideal office space takes time, especially for a new business. Unfortunately, many business owners want to move fast and settle their business, so that they can understandably focus on other aspects of their business.
When moving too fast though it is easy to overlook important terms and conditions in the lease contract which can result in you paying more than anticipated or being tied to a lease for longer than you thought. If your search is not conducted thoroughly you can miss out on other, perhaps more suitable office solutions or you could end up in a location that also accommodates your competitors. This can work for you or against you but it is a good idea to allocate enough time to search for your business premises.
If you are unsure about the ideal location or dimensions of the office space, start your business with shared, flexible office space. As your business grows, you can make accurate decisions on the right location, size, and outlook of your business.
The purpose of seeking advice and information on renting the ideal office space is to avoid repeating other people’s mistake. You now know the top mistakes to avoid. Renting mistakes are costly especially when you discover the mistake too late. Take your time and enlist reliable brokerage services to locate the best office space for your business.