How Rent-Free Periods Can Help Your Business Growth
Depending on market conditions and your business location, your commercial office rent can take up a large chunk of your expense budget, especially if you are still in the process of growing yourself.
Rent reductions can open up a whole range of opportunities for you, allowing your business to grow.
Here are some of the ways that a rent-free period could benefit you and your business.
You Don’t Have To Settle
When you are moving into your first office, you may feel like you need to settle for a cheaper office space that doesn’t actually suit your needs. Whether it’s compromising on location, building quality or other amenities, it’s not a good idea to rush into a space that’s not a good fit.
There’s no point renting an office if it’s not actually going to benefit your business, or be good for you in the long run.
With a rent-free period, you have more room to choose an office space that is compatible for your business. If you don’t have to make rent payments for even just your first 6 months, you may be able to afford a better office space while you get set up.
Here are just some of the reasons why you want to find the ideal space for your business.
Location and Accessibility
If you are operating your business from a more central location, you can increase your accessibility to your customers or clients. This could help you grow as it allows and encourages more people to visit your company in person.
Depending on your business, location can be incredibly important to your sales and visibility.
Without this accessibility, you could be missing out on this additional opportunity to grow your business.
Greater Brand Recognition
Renting the right commercial property can help with both establishing and improving your brand identity. Having a more visible space means that more people will see your name, just by passing by.
Many people will start associating your brand with your office building, so you want to make sure that it aligns well with your identity, and not settle for something that doesn’t represent you well.
Having an address to put on Google will also help with your online presence, and might look more legitimate when people search for you online. Google won’t always approve a short term lease property as an address for your business, so having a long term lease agreement helps you in this situation.
Improves Credibility and Professionalism
Having a permanent space for your business can improve your credibility in the eyes of both potential clients and employees.
It can seem unprofessional and even dodgy to some people if you don’t have a permanent space for your business, or if your office space isn’t up to a certain standard.
If you want to grow your business, having a professional commercial office to work out of can help you build trust and credibility with your clients.
Promotes Productivity & Morale
Having your own office space is good for you, and your employee’s work-life balance. Being in the same spaces enables you to work together, and helps streamline workflows and boost collaboration and productivity.
You are able to make sure that you set up your office in an ergonomic manner, to ensure everyone is being well looked after.
Working together, when done correctly, will help build rapport and bonds that will improve the productivity and efficiency of your business.
Gives You the Space to Grow
With the right office space, you are giving yourself the room you need to grow.
With your own office space, you can hire more staff and facilitate the work that you need to get done.
If you are stuck working from home, you might not have the equipment, or the space, for your business to take on new clients or orders. With your own commercial office, you can make sure you aren’t held back.
And when you grow even bigger you have the option to renew your lease or move into an even bigger space when you need to.
You just don’t want to settle for the wrong space for the sake of having an office. Commercial real estate can be tricky, but with a rent-free period, or a reduction on your monthly rent, you have more chance of finding the right space for the right price.
Free Up Cash Flow
Perhaps the most obvious benefit of a rent-free period is the fact that it frees up cash-flow for your business. With this extra money, you can focus on expanding and growing your company.
The possibilities are endless when it comes to reinvesting back into your business, and ultimately you will know where that money is best spent.
Here are just a few of the potential uses for that extra money.
Depending on the office space you choose and your business needs, some fit-out work might be required. With a rent free period you can use that money to invest in a high quality fit-out for your new space.
The fit-out could include things such as;
- Air conditioning
- Plumbing and bath rooms
- Additional mechanical, IT and electrical elements
- Office rooms
- Blinds and window furnishings
- Kitchen areas
It will really be up to what your business needs, but this is a great potential benefit from a rent free period.
A new office space may require a lot of new, expensive equipment. With a rent-free period you will free up money to invest in high quality equipment such as computers, printers, or any other type of machinery your business needs to run efficiently.
You can even invest it into quality of life improvements such as kitchen appliances for staff lunch rooms, and comfortable ergonomic chairs.
Another great way you can invest that money is in improving your product or the service that you offer. You can invest in more research and development for your product, or in high quality parts.
In the long run, this investment has the potential to really improve your businesses success overall.
With more cash flow, you might be able to invest in new staff for your business. Whether you need more help with administration, sales or industry qualified employees, this money might help you hire some new staff.
Additionally, you could offer your employees more incentives, or promote someone to a full time position.
Contact Englander Principal
At Englander Principal we specialise in negotiating the best commercial lease agreement for you and your business.
We take all the pain and stress out of your commercial real estate negotiations, and keep you informed every step of the way.
We aim to help business owners free up their cash flow so that they can reinvest back into their own company, and see greater success and growth.
We work on a No Win, No Fee basis, meaning there is no risk when you work with us.
We charge a 15% commission on a successful case, meaning if we win, and for example negotiate a 12 month rent free period worth $80,000, you save $68,000.
We are based on the Sunshine Coast, QLD but offer our services worldwide. We have years of experience, and have successfully brokered many commercial office deals, saving business owners thousands of dollars on their rent.
If you want to get in touch with us, you can learn more here.