Should You Rent an Office Space For Your Business?
If you’ve just started a business, you might be wondering whether you should rent an office space for yourself.
It can be an exciting time for your business, but it’s also full of risks. You don’t want to lease a building that you can’t afford, and end up losing money. You also don’t want to sign a long term lease, for a building that doesn’t let you grow your business.
This blog will cover a few things to consider when deciding whether you should lease a commercial space for your business.
For some people, especially people running their business on their own or with minimal employees, a home office is good enough.
If you are just a start-up company, and you work by yourself, renting an office space is not essential yet. Your priorities are probably with growing and expanding your business, and you might be able to do that by working at home, at a library, a cafe, or anywhere that suits your needs.
Creating a space in your own home to run your business can help reduce your financial burden, and give you more money to spend on growing your business. You don’t need to worry about making a monthly payment for your office space, and you can instead invest in improving your products or services, and marketing your business.
Once you’ve grown your business, and have a few employees, then you might want to start considering a workspace for your business.
If your business employs multiple people, having a common area to work in can help boost productivity. Working together in the same building can help you collaborate more easily, and you can increase the efficiency of your workflows.
Having a well-designed office is also shown to improve team productivity. So it’s important that you don’t just get any office space, but you get one that will suit your needs and help you and your staff work effectively.
Work life balance
As a small business owner, it can be difficult to maintain a healthy work-life balance, especially without an office to work in.
With a home office, you might end up overworking yourself and being unable to relax when your work hours are over. On the other hand, you might find it hard to focus and work because you are too relaxed at home.
Office space can sometimes help people with their work-life balance. They are able to switch on to work mode when they are in the office, and then enjoy their time at home.
The type of industry you operate in will have a big impact on your office needs. If you are a freelancer who can easily work anywhere, you have less need for permanent office space.
If you operate a customer-facing business, having a space for clients to come in and discuss your products or services can be helpful, and in some cases can even help you with sales.
Leasing a retail space to showcase your products might be a good idea once you’ve established yourself, but if you are just starting out, it might be best to grow your business online first.
When you sign up for a commercial space, there will be a lot of operating costs that come with it. Not only will you be paying for rent, determined by the square footage of your space, you will also be subject to property management costs, new equipment and even simple things such as buying coffees.
When deciding on leasing a space for your business, it’s important that you fully explore the costs involved, and decide whether you are ready to take that on.
If your business isn’t ready to handle these costs, it’s probably best that you don’t sign up for a lease, and then have your business ruined before it can even really begin.
As great as an office is, there’s no point leasing one if it means you won’t have anything left over.
Here at Englander Principal we understand that you might be ready to expand your business and grow in a new office space, but you might not be financially ready to start that journey.
We work with you, the tenant, to negotiate the best commercial lease terms for you. We are not real estate agents, we are negotiators.
How does saving 24 months of rent sound? Have your rent cut in half? Or even just having it decreased? We work to save you money on your office rent so that you have more cash flow to invest back into growing your business.
Your landlord will be earning nicely from you, especially if you are signing a 5 or 6-year lease, so you might as well get some benefit from it.
We work on a No Win, No Fee basis. If we don’t secure a win for you, you pay nothing.
However if we do manage to save you money on your rent we charge a small 15% commission on the money you saved.
If we save you $40,000 on your rent, we take $6000. That’s $34,000 you have to invest back into your business.
So if you’re ready to save, chat with us today.