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 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.
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.
For many new small business owners, a home office makes the most sense. Being able to work from home is an appealing concept for women today. The cost of starting a business is relatively low and women can feel more fulfilled knowing all the hours they put into work are to build their own business instead of someone else’s. More than 60 per cent of people who start a business are now doing so from home. From fashion design, IT and catering through pet care and arts/crafts to accountancy and legal services – you name it – it’s being run as a business from someone’s home. Most cities and towns will allow you to run a business out of your home as long as you meet certain criteria. A major benefit of using your home as your business location is that you won’t waste any time commuting and you won’t incur additional costs to rent an office space. The IRS also offers significant tax deductions for a home office used for your business.
But there is also drawbacks to working out of home. A major drawback of working from home is that you can never truly leave work. Also, many types of businesses aren’t suited to a home location. 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. For some people, the chance to move into commercial premises provides a more professional outlook, greater scope for expansion and the room to accommodate permanent staff.
For some businesses, such as lawyers,accountants, insurance brokers, classes most clients either want, or need, to come in for face-to-face appointments. Other businesses, such as advertising firms, may be able to service their clients while hardly ever meeting them in the flesh. Before you move out your home office, read on to learn about the pros, cons, and factors to consider when moving to a retail space. There will be lifestyle and financial changes to your business if you choose to do so. You probably considered these factors when you decided to start a home-based business, but you will have to consider them again. If you can afford the move and want to expand your business to a larger clientele and higher production rates, then moving to a commercial location will definitely accomplish that goal.
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.
One of the things that makes starting so hard is that there’s so much to do. It’s overwhelming. Van Nuys Offices will help you to organize your thoughts and develop a business plan that puts you on the road to success. One of the main things to think about if you’re running any kind of business is where to have it located. Van Nuys Offices has many different sized offices and with different layouts. If you’re a sole trader, freelancer or someone who doesn’t have any employees then working from home is often seen as the way forward. After all, it can be a cheap and cheerful way of keeping overheads to a minimum.
However, increasingly a large number of people who have a business to run are finding that renting office space from Van Nuys Offices is a great way of pushing their business forward. The process of starting an office is complex and the decisions that you will have to make are critical to the success of your business.
Acquiring too much office space in the wrong location will have a very big impact on your business’s financial stability. Because you will be paying for office space you are not using. Acquire too little office space and you will have to move after only a short period of time if your business increases. Determining the right amount of office space in the right location will help you to reduce the risk of moving from office to office.
With the flexibility of their leases and the amount of help they that honor their tenants. This makes it a lot easier to get your new business jump-started. Even though the recession continues to rumble on, this has been good for people on the lookout for a place to work as rents are cheap and prime locations are plentiful.