Now that you’ve come up with your million-dollar business idea the fun has just begun. With a fundraising strategy and business plan in hand, you’re ready to start a business and welcome potential customers.
There’s just one problem. You don’t have an office space yet. If you choose to lease a commercial office space, how will you determine which part of town suits your business? This is just one of many things to consider.
Here’s a look at four things you will need to think about before you sign your office space rental contract on the dotted line:
Office Space Rent
While business owners don’t want to admit it, the cost of monthly rent for the office space plays a major role in determining where a company sets up shop. If the rent is too high for the area, the business will spend too much on overhead, potentially driving customers away. If the rent is too low, maintenance issues may become a problem as the landlord may not be invested in maintaining the property. You may want to first consider the percentage of revenue you should spend.
Tech entrepreneur David Cummings suggests, “For office space costs, focus on the type of environment you want to have and the projected number of employees. Here are some examples: (a) Co-working environment or scrappy sublease — $100 – $250 per employee, per month (most desirable if it works for your startup); (b) Creative office or decent class B office building — $300 – $500 per employee, per month; or (c) Swanky office building with nice finishes and great views — $500 – $1,000 per employee, per month.”
Let’s face it, parking can be considered a premium perk in many cities. Parking for employees and customers is an important consideration — particularly in downtown business districts. If employees or customers have to pay for parking to visit your office, they are less likely to shop or work there. Meanwhile, if it takes more than five minutes to find a parking space, or if a person has to walk more than 1/10th of a mile, the odds of their patronage also decline. So, when choosing the best office space for your small business consider parking costs and availability.
Square Footage and Amenities
Office space size is an important issue to determine before signing a lease. You need to consider how many employees you’ll have working for you (or if you open a retail store, a forecasted number of patrons). You’ll need to think about storage space for inventory if you sell products. Meanwhile, every office should be equipped with a break room area, restrooms, space for computer tech and fixtures, and other necessary equipment.
Take into account your equipment and fixture needs including office desks, office chairs, office shelving, office cubicals, and composite rack cases. Don’t forget about office-wide equipment such as printers and copiers as well. Meanwhile, consider the ease of moving new equipment into and out of the building.
Erika Remmington is a freelance writer from Santa Cruz, California. She attended UC Berkeley while majoring in linguistics. Erika now lives in Vancouver, British Columbia with her husband and German shepherds.
© YFS Magazine. All Rights Reserved. Copying prohibited. All material is protected by U.S. and international copyright laws. Unauthorized reproduction or distribution of this material is prohibited. Sharing of this material under Attribution-NonCommercial-NoDerivatives 4.0 International terms, listed here, is permitted.