Roughly 4 million businesses are created in the US every year, with recent world events only increasing the rate of new business applications recorded by the US census bureau by 53%, but it may surprise some to learn that around 69% of US entrepreneurs start their companies from home.
As new businesses grow, taking on new clients and increasing numbers of staff, business owners can quickly outgrow their humble home offices, though finding a suitable start-up office space in such a competitive market can prove to be a much more challenging task than many entrepreneurs expect.
Finding an ideal office space will require business owners to both consider their current needs and appropriately plan for the future, all while sticking to an often-restricted budget. To help entrepreneurs to break down this task, here are our 6 top tips for choosing a suitable start-up office space.
Photo by Austin Distel on Unsplash
Location is key
One of the main benefits of setting up a physical office space is the impression that doing so will leave on your clients. Customers typically show greater levels of trust to brands operating from a physical location, especially if they’re able to interact with staff members when visiting offices and retail stores.
The location of your offices will also have an impact on your overall brand image, for example, offices situated in well-known business districts will leave clients with an impression of prestige, though the cost of renting a prime office location may not always be conducive with the budget of a start-up.
The most important factor to consider is how accessible your location will be to staff and clients, including local roads and traffic systems as well as the actual layout of the office space, above all else you’ll want to ensure that customers and employees don’t have a hard time actually finding the place. Many cities have incentives for businesses that locate in certain areas, so make sure to look into these opportunities.
Make the most of your budget
Many property owners are primarily focused on achieving the highest possible return on their investment, which is often reflected in eye-watering rent charges. To ensure that you’re getting good value for money, it’s essential to compare multiple locations and evaluate all available amenities.
Take the time to carefully read through lease contracts, looking for any hidden charges that may be buried in the fine print, and don’t be scared to seek the opinions of existing or previous tenants in order to gain a deeper understanding of what it’s like to work out of these spaces on a regular basis.
It’s also important to calculate the expected costs of moving offices before you sign any contracts, including the costs associated with renovating or installing new equipment, as if the move isn’t projected to make you more money in the long run you may need to question whether it’s necessary.
Avoid long leases
This is a particularly important consideration for smaller businesses, as you don’t want to commit to a long-term lease only to find that your scaling business has outgrown the space in a year or two. In order to avoid this, never sign a lease that doesn’t factor into your long-term business plans.
Make sure to ask plenty of questions when discussing lease contracts and business auto lease insurance. Inquire about alternative options such as sub-leases, as these arrangements may prove beneficial to long-term plans by providing a much more flexible approach that can fit more appropriately into your projected business timeline.
Remember to take your time when mulling over the pros and cons of the final lease document, and don’t allow property owners to rush you into a decision, only put pen to paper when every detail of the agreement is understood, including the costs and financial implications of each and every clause.
Think about the office layout and amenities
Not all office spaces have the same general dimensions, and some locations that seem appropriately sized when empty may actually turn out to be quite cramped when filled with office furniture and equipment, so it can be worth your time to take some measurements before visiting possible sites.
Your new office space will also need to be comfortable and safe for employees to work out of on a regular basis, so make sure to check that all lighting, air conditioning and heating systems are functional during viewings and consider whether on-site amenities are offered like cafes, lounges, and retail stores for quick errands.
Businesses in some industries will also need to host regular client meetings, so it’s essential that their office spaces can accommodate a professional meeting room and an attractive reception area, this way existing and potential clients will receive a good first impression of the company on arrival.
Consider modern trends
Recent studies show that as many as 58% of American workers have the opportunity to work from home at least one day per week, with trends indicating that alternative working setups such as coworking spaces are becoming increasingly popular across most American business sectors.
Flexible hours have also become desirable in many areas of business, meaning considerations may have to be made for allowing access to staff outside of regular office hours, including on-site security teams and advanced security measures such as video management systems and lockdown safety that staff can use without management teams being present.
For start-ups planning on scaling their operations, these trends will need to be appropriately considered, as new employees may wish to engage only in hybrid or fully remote roles, meaning the signing of a long-term lease for a large office space may result in wasted funds further down the line.
Photo by Austin Distel on Unsplash
Look for networking opportunities
Start-ups looking to quickly grow their operations out of a new office space may wish to seek out locations filled with similarly focused businesses, as a personal connection with similarly minded business leaders can help to develop mutually beneficial company relationships for the future.
Some office locations will host regular networking and social events in which all tenants are able to interact and build connections, which can prove invaluable to smaller companies by enhancing workplace cultures and helping to develop new marketing opportunities across adjacent brands.
Choosing an office location that hosts regular networking events can also help business owners to collaborate on improving the office building as a whole, with each business able to share ideas on possible new features and procedures that they wish to see implemented across communal areas.
Summary
Moving into a new office space should be approached with a great deal of care, as the location you choose will have a measurable impact on the future of your business. Take the time to draw up a budget before booking any viewings and remember that long leases should generally be avoided.
Consider how your office equipment is to fit into the new location, and always keep in mind any future office expansions that you may wish to explore. Think about how your new office can accommodate growing numbers of employees and check whether the site includes access to useful amenities.
Throughout every step of the process, you should consider your long-term business plans, and try to ensure that the new office space is equipped to meet the needs of future employees. Think about the potential benefits of networking with similar companies, and above all else. make sure that your new office space is approachable and accommodating to both existing and future clients.
Why is FinancesOnline free?
Leave a comment!