There are plenty of great reasons to set up a home office. One of the perks of working from home is being able to take breaks when you want to, spend time with family, etc. However, this can quickly eat up your day without you realizing it. There’s nothing worse than picking up the phone with an important client and having a knock on your door or your child ask for something.
But as your business expands, you might begin to feel a little cramped in your home office. If, for instance, your “office” is little more than a desk packed into one corner of your living room, then it won’t be long before your freelance life—printers, paperwork, contracts, and file cabinets—begins to invade your personal space.
That’s when you know it’s time to go out and look for a small office space for lease. Establishing an office that runs efficiently requires accurate calculations of the space needed and what is affordable.
There is credibility that comes from an office with a business sounding address. For example, you nothing about two consulting firms. You only know that one consulting firm everybody worked out of their homes and the other firm had an office in the building next to the courthouse, you were a serious buyer of consulting services, from which consulting firm would you purchase consulting services?
Finding the perfect office, in the perfect location, can have a huge impact on your business. With the average length of a commercial property lease at 5-10 years, finding the perfect space is crucial; nobody wants to be stuck in the wrong office for any amount of time, let alone 10 years!
The right office space can make or break a business. It’s not easy to find the perfect premises, especially if your experience is limited. The key factor is to take the time and don’t settle for the first one you think is perfect. Because remember, your business will have to live with it for the life of a lease.
Give yourself some time don’t rush into a lease. Though the economy is in a state that there are plenty of office spaces around, you’ll still find that the perfect office space is hard to find. But, due to the recession, landlords now have cut their lease lengths to at least a year. Making things much easier for you.
The best thing to do when you think you have found the perfect place is to determine how much space you really need. Once you have calculated this , you want to evaluate how much space you will need to expand once your business becomes successful and can hold more people. Paying too much for an office space could affect profits; paying a small amount for inefficient space is also a waste of money.
There comes a time when that basement or spare bedroom you’ve converted into an office just doesn’t cut it anymore. You need a real office space — a place where you can meet clients without your small toddler crying in the background, a place where your filing cabinet doesn’t double as a table for the microwave.
And unless your business is picking up pretty good then you probably don’t have that extra money to rent an office space. However, there are a few things you can do to help you save money without feeling like you’re cutting too many corners. Here are some tips to help you get started:
I. DO THE LEGWORK YOURSELF
Hiring the help of an agent may seem like the correct thing to do. But hiring an agent means there’s going to be fees to pay. So in order to save some money you might want to go solo on your office search. You’ll find it easier to find the perfect space, after all you’re the one who knows more about your business.
2. HOW MUCH SPACE DO I NEED?
Before you go out looking for an office space, you need to stop and calculate how much space you will need. You don’t want to end up renting a 10,000 square feet office when you only really needed 7,000 square feet. Which would mean, you will be paying every month for and extra 3,000 square feet of office that you don’t really need and aren’t really using.
3.FURNISHING THE OFFICE
With the great list of used and refurbished office furniture available today, purchasing new is most often a waste of money. Don’t go buying new furniture when there is many thrift shops or classified ads that have office furniture that is in very good condition and for a very good price.
4.PREMISES TO MATCH YOUR TYPE OF BUSINESS
Don’t underestimate the value of appearances. How your office looks can have a huge impact on business & investor relations so it is crucial that the premises you choose match with the image you want for your business.
5. NOT CONSIDERING FUTURE NEEDS
Renting office space can be risky because it may be difficult to predict your future business needs. Renting the proper amount of space, in a location that suits the business, is sometimes a great risk you will be taking. The property owner does not share in your risk-taking, and it won’t be the landlord’s problem if the office turns out not to suit your needs. If you signed a contract, it’s your space until the lease terminates.
There is real opportunity to start a business today because many, many businesses that existed prior to the recent recession have closed their doors and left wide range of parts of market with little choice . Many long-standing client relationships have also disappeared. More than anything else right now, consumers and businesses want the lowest cost, period! This presents a great opportunity for entrepreneurs who want to position themselves in the marketplace as the lowest-cost provider.
But before your jump into this roller coaster ask yourself a few questions…
1. What kind of business will I begin?
Do what you love to do. Businesses don’t just happen. They are made. Most people do the mistake in opening a business they know nothing of. Your success relies on what you bring to the business. If you love what you do then chances are your business will be successful. Don’t be tempted to start a retail store just because you find a cute, affordable space.
2. Where will I get the money to start my business?
Start up business funding and start up business grants are hard to come by. Ensuring you have the funds necessary to stay viable past the first few months, when business will be at its toughest, is extremely important. If the only problem you have is a momentary lack of funds, and you have a decent credit rating, speak to your bank about a business loan.
3. Do you know how to run a business?
Running a business takes different skills than practicing what you know or love. If you don’t have an idea on how to run a business, then start today learning how to do it, or find a friend that has same knowledge on this and can give you some advice.
Yes in fact many businesses that go under is because they didn’t have a business plan before they started. Creating a real business plan is hard work and a pain. But it is hard work that will be rewarded. It forces you to think past rationalizations that we all tend to make and come up with something real and doable.
If you are on a tight budget and are unsure exactly how long it will take for profits to flow in at a strong level on a regular basis, consider starting a business with a home office. New businesses die every day and many suffer a premature death simply because the new owner ran out of money.
It can be complicated in determining when is the right time to move your home-based business to a separate office space in. Moving too soon can result in overhead that is outside of the current cash flow ability. Waiting too long may result in loss of customers or jobs. Operating out of the home can be a big plus for many small business owners. By significantly lowering your overhead expense, you can improve your profit margins in good times and reduce your risks if the business cycle heads down. The advantages of moving out of your home office boil down to increased professionalism, more space to work and unlimited growth potential. Of course, with any advantage come a few disadvantages, but nothing that can’t be overcome.
There are a few signs that let you know it’s time to go out and look for an office space. For example:
Dogs barking and family members needing your assistance will not only minimize your productivity but can be heard on calls and conferences. While most understand the demands of juggling business and home life, constant interruptions and background noise are not necessarily helpful when you’re trying to project a professional image.
Businesses that need a great deal of space or that need bulky equipment are obvious candidates for outside offices. But some businesses that don’t need to be operated from outside offices can benefit from them. You’re struggling to fit the new printer but you’re struggling because there just isn’t room between your file cabinet and the queen-sized bed that also sits in your office. Maybe you do need a larger space that can be devoted just to your business. Piles of equipment or papers that are interfering with either your work or your family life also send a signal that it’s time to consider an outside office.
Space for Clients:
When a big portion of your business involves meeting with clients, you may need more than just the local coffee shop. When you want to present to a larger group or need a truly professional meeting space, you’ll need to find something a little more appropriate than a café. One option is to rent office space – you’ll get a set amount of hours in an office, along with access to a conferenceroom.
Most businesses with outside locations tend to be easier to sell and to bring higher prices. For one thing, the new owner doesn’t have to scout out a new location and go to the expense of moving; for another, customers and clients are already accustomed to visiting a particular office and can continue to patronize it despite the new ownership.
Some businesses operate most efficiently when they are located close to customers, suppliers, or certain other facilities or businesses. For example, law offices are often located close to the county courthouse, in part to minimize the time spent running back and forth to court. Also, many customers or clients seem to feel that a business with a permanent address other than someone’s home is less likely to be a fly-by-night operation, and more likely to be able to deliver on guarantees.
People always wonder if this is a good time to start their own business. The fact is,
there’s really never a bad time to launch a business. It’s obvious why it’s smart to launch in strong economic times. People have money and are looking for ways to spend it. But launching in tough or uncertain economic times can be just as smart. If you do some research and there’s a high need for the business you’re starting. Because many people are reluctant to launch in tough times, your new business has a better chance of getting noticed. And, depending on your idea, in a down economy there is often equipment (or even entire businesses!) for sale at bargain prices.
When you start a smallbusiness you face lots of challenges. In order to improve your chances of beating the odds, what is important is that you educate yourself about business development. Starting and running a business, or any form of self-employment, requires a range of skills and attitudes. It can be very demanding.
It’s important that you understand all the responsibilities you’ll have, and as many of the foreseeable challenges as you can. On the other hand, it’s also important to recognize the rewards of working for yourself and providing a quality product or a needed service to your customers and the community.
Working from home might seem to be cheaper than leasing or renting an office space, but in the current climate with lots of property available, office space rental isn’t the costly exercise you might think it to be. In fact, thanks to the recession, many landlords are simply eager to lease out their dead office space, and so as a result, prices are actually more competitive than ever.
You’ll be surprised at how cost effective this option can be and the extra benefit with renting an office space from Van Nuys Offices with one of their short-term contractsIt also allows convenience and flexibility, which are both essential things when a business is in its fledgling state. Shop around, take a look at the deals – it could be the best thing you’ve done to date.
Van Nuys Commercial Real Estate for Rent and Lease – Van Nuys, California
There are a number of common mistakes made by businesses when they are selecting new office spaces. From new start ups to well existing corporations the mistakes made always seem to be the same ones. If you’re considering renting office space for your business, it’s important that you study the rental process so that when you’re ready for that new office space you have the basic understanding of how it works. These mistakes can cost you and your business a lot of money if you’re not careful, so make sure you are watching out for them as you begin the rental process. Many of these mistakes are common sense and with a little planning are largely avoidable.
Mistake #1: Not giving yourself enough time
Give yourself enough time to plan the relocation or the opening of your new business. Not giving yourself time to shop around for spaces can result in unnecessary expense. The longer you wait to execute your plan to rent a space, the fewer options you are likely to have in terms of potential premises and this can then result in a loss of negotiating power. Like anything else in life, preparation always pays off in the end, and in this case, it can end up saving you thousands of dollars.
Mistake #2: Not Planning for an Exit Strategy or the Future
What happens if you have to leave the space before the end of the lease term? The rate that you negotiated for 3 years might not seem so great if you have to downsize. Negotiating a shorter term lease might have made the rent more expensive in the short run, but limited your downside expense in the longer term. Clauses that allow for subleasing can alleviate risk. What about if your business out grows the space? Can the landlord accommodate your need for additional space without you having to break the lease? This is something really important you need to ask before signing that lease.
Mistake #3: Picking the Wrong Location
What may seem like the right location might in fact not be. The choice of the location depends on your business. Is the geographical location ideal for the staff and the business? I have heard business colleagues comment on the fact that their offices are in the wrong place. Ensure that this mistake isn’t made with some thorough research into how the location will impact both the staff and the daily running of the business. Check transport, local traffic spots, the reputation of an area and so on. It’s better to be armed with all the relevant information before committing.
Mistake #4: Misunderstanding Insurance
Anyone renting office space will need to carry renter’s insurance that will cover their inventory, equipments, files, machines, computers and whatever else is stored in the office space. Make sure that the your Renter’s insurance policy works together with the lease you’re signing otherwise you might not even be fully covered. Some office rental leases will cover certain types of damage, such as those caused by the building itself being in disrepair; others cover absolutely nothing and leave all insurance costs up to the renter. This means that before you buy a renter’s insurance policy, you’ve got to examine your lease paperwork and see what coverage, if any, is offered – and whether you think it’s good enough.
Choosing office space is a crucial decision that can make or break a business so make sure you take your time, get the right advice and shop around to get the best deal possible.