If you are at the stage that your start-up has outgrown your bedroom and you need extra space, it is time to look into investing in office space.
Many entrepreneurs spend the first couple of years on their new business working from the comfort of their own home in order to save costs. Eventually, though, a successful start-up will outgrow the confines of the bedroom or spare room, especially when taking on new employees.
While there is nothing wrong with keeping overheads down to a minimum as you look to grow your business in the early stages, you will hit a glass ceiling unless you begin to look at commercial property for sale where you can move your business into.
One of the main aspects of investing in office space is to first decide on where you want your business to be located. There are two main options here – either in the centre or outskirts of the city.
The pros and cons related are simple; generally, the better the location, the more expensive the office space. It is recommended that start-up business should look to keep costs down to an absolute minimum, so consider looking at office blocks further afield on the outskirts of the city, rather than in densely populated areas.
You should also consider looking at transport options, especially if you are taking on a number of employees and expect to hold meetings with potential business partners on your premises.
Buy or Rent
Secondly, your next decision is whether you rent or buy your commercial property. Both have their pros and cons, although most start-up businesses, especially those headed up by new entrepreneurs, look to rent office space rather than owning outright.
Renting space will give your business more freedom to move on as and when you need to upgrade, although the lure of owning the property, and not being at the mercy of a landlord, is also appealing. When looking for a property to rent, just consider a number of important factors, such as:
- The terms of the agreement (who is responsible for maintenance repairs etc…)
- Condition of the building
- Decoration (can you re-decorate to fit your brand)
- Connectivity (what speed of broadband and how reliable a phone signal does the area have)
- Local competitors
What are your long-term plans? How fast do you see your business growing over the next five years? If you are confident that your business will continue to grow at a fast pace during this timeframe, it may be worth investing in office space that matches your ambition, at least for a few years.
For this, it is best to look at your business plan and consider how many employees you are planning to take on over the next few years and imagine where they will be placed in the property. Imagine how the office will look when you move in – if you cannot do this, it is a sign that the property is not for your business.
Furniture and Equipment
Once you have agreed to move into an office space, the next thing is to invest in furniture and equipment. Only purchase what you need for the immediate future, as you will have only just made a major investment.
Do not be too proud to avoid second-hand furniture and equipment, especially if it is still in good condition. This will help majorly to keep costs down while your business is still finding its feet in your new office space.
Moving into your first premises, that is not your bedroom, is an exciting time for any start-up business and, if approached correctly, will only lead on to bigger and better things.
About author: Vedant Goel is the Founder of StartupKafe Media & Brand Expert. He is a young Social Entrepreneur & Entrepreneur. He Believes in helping people and interact with new startups. He got felicitated by Limca Book Of Records and Government of Madhya Pradesh for his work. His aim is to help young entrepreneurs/startups in india.