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Common Mistakes Made when Renting Office Space

Van Nuys Commercial Real Estate for Rent and Lease – Van Nuys, California

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Mistakes People Do

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.

Virtual Office for my Business

When you’re a new business start-up, or an entrepreneur with a great idea of starting your own business  but with limited resources, then the best way to start your idea, while still maintaining professional appearance to your clients, is to lease a virtual office.

The benefits of setting up a virtual office for a new business is apparent.  Not only do you save the company money in rent and rates , you achieve a appearance of professionalism and it gives you the freedom to work not just from home, but literally anywhere, meaning you can get out on the road and do some much needed prospecting.

A virtual office is like a traditional office it provides all those services that you expect from a real office without the cost of a traditional office.  Even the tiniest of offices can run several hundred dollars a month plus the cost of commute, the furniture and computers , and at least one telephone line the cost of doing business can become overwhelming.

Setting up a virtual office can seem a bit intimidating at first, but once you get the idea and get a feel of the benefits,  it’s really quite easy. With today’s technologies and the use of a virtual office, there really are no boundaries. With a virtual office you can spend more time with your family, work from almost anywhere, and your clients never need know you don’t have an office downtown, if you prefer them not to know.

SHORT TERM OFFICE SPACE

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New Business Success

Short term office space is an excellent solution for companies that need a temporary place to conduct business. By renting a small office your company can save funds and use them towards other things. This could mean the difference between turning a profit and not turning a profit. . If a company’s staff is small, then it makes sense to rent small offices rather than whole floors or buildings. Size isn’t everything when it comes to business. A group only really needs a professional setting that has a enough space for desks and filing cabinets, among other company-specific items.

Renting an office is a smart thing to do when a business is still growing, but it is not obligatory.  Renting an office helps out a lot in the first stages of growing your business.  If your business would need to apply for a small business loan and having a commercial address would help out a lot.  Many banks take small businesses with a commercial address more serious than those businesses that are running their business from home.

Privacy, client confidentiality, personality traits, etc. can all factor into one’s ability to benefit from a small office space.   Small office suites provide small businesses with the space and professional image they need without breaking the business’s budget. You do not have to buy or rent out a whole building or entire floor to operate your business. Instead, lease a small office suites that has just the right space you need for your day to day operations. This is an affordable and effective to get your business idea going.

A Commercial Address Required For Some Business Licenses

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Starting Your New Business

To run your business legally, there are certain federal and state licenses and permits you will need to obtain in order to conduct your operation.

Virtually every business needs some form of license or permit to operate legally. However, licensing and permit requirements vary depending on the type of business you are operating, where it’s located, and what government rules apply.

You can expect to secure the maximum amount of credit available if you set up your business in a commercial office location. A physical location that is zoned for business speaks volumes for your company and its operation.

If you’re determined about having a commercial address but renting office space is out of the question then you may want to consider the following 3 alternatives:

  • Commercial Address – There are many leasing companies liken Van Nuys Offices that offer you the ability to have a qualified commercial address for your business for the purpose of only receiving mail and packages.
  • Virtual Office – A good way of saving money and at the same time still maintaining a professional image is to have a virtual office.  A virtual office will give you the right impression at a fraction of the cost of having your own office. With a virtual office you have the ability to run your business out of your own home and at the same time building a professional image for your business.
  • Dedicated Office – You can obtain a complete turn-key office operation which includes a private office with your own phone, fax, internet, full furnishings, meeting room and much more. Some turn-key offices give you the privacy, security and professionalism of a workplace that is not in an open environment or room-share. You will have your own suite number, own mailbox, and your own phone line. You may choose from one single private office or several offices with many options.
  • Five Important Steps to Start Your Own Business

     

    Start your own business today
    Start your own business today

    1.    WRITE DOWN A BUSINESS PLAN

    The main biggest mistakes a young entrepreneur makes is not writing down a business plan. Not only is it a good planning tool, but it also the key element that will help you raise money.  Include research into things like how much you can charge for your product/service, how much it will cost to produce or deliver.

    2.    FIND A LOCATION FOR YOUR BUSINESS

    Although the idea of starting your business at home is money saving there is many factors to look at when starting at home.  Will the kids interfere? do you have space? If these in fact are going to be a problem.  Then go out and look, for an office space.  Remember

    3.    SIGN A LEASE

    Ask for a copy of the form lease from your potential landlord. Read it and try to understand it. If you don’t understand the legalese, find an attorney. Start-ups should look for flexibility and try to sign as short-term a lease as possible. Understand the details of what you’re committing to when signing the lease.

    4.    MARKET YOUR BUSINESS

    Even though social networks are essential, don’t underestimate the old ways of marketing.  Your business is barely kick starting so you need to get the word out, let people know of your business, what products or services you provide. Embrace and use the most effective online tools (Twitter, Facebook, YouTube, LinkedIn) available to broadcast your news.

    5.    KNOW YOUR COMPETITION

    Many businesses fail because they underestimate the competition. Often, it is not necessarily the quality of that competition, just the mere presence of it. You may think that you can drive your competitors out or at least steal some nf their business by offering a better price or better service, but many businesses can breed an intensely loyal following of customers.

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