As an entrepreneur, growing your business is probably one of the most challenging things you’ll come across in life. It involves so many different processes and complications that it can easily start to get overwhelming. However, as you gain more experience (likely through failed businesses and ideas) you’ll start to increase your chances of actually succeeding in your endeavours. Of course, this process does take time. But that’s why we’re here to help you with one of the most difficult things about growing your company; getting your first business space.
Starting your own business feels simple compared to the act of actually growing it. Most people can start a business these days with nothing more than an idea and a bit of money to get a website going. You can do it on your own as a one-person team and you’re probably not going to risk much if your idea fails. However, if you grow your business and start to hire people or offer people jobs, then there’s a lot more at stake.
So in this post, we’re going to look at five of the biggest concerns when it comes to renting your first business space. As you’re likely going to be hiring people and storing more of your products (depending on the type of business you run) we feel that this is probably one of the most important aspects of your business to get right the first time.
1. Do you even need to rent a business space right now?
First thing’s first; do you even need a business space right now? Perhaps what you’re looking for is a warehouse to store your products or an area to design all of your new products before you mass-produce and ship them out. Maybe what you’re looking for is a retail space, such as a storefront to put your products up for sale in front of paying customers. There are a lot of different types of commercial spaces that could be good for your business, so it’s important to look at all of the options available and see which one closely matches the next logical move for you.
One way to decide is to simply look at your business and how it’s progressing. For instance, if your business involves selling clothes, then you might be currently selling your clothes over the internet. However, whether you’re dropshipping clothes or creating them in your own time is going to have a drastic impact on when or why you should be renting a business space. For instance, if you’re more likely to focus on dropshipping, then you might need a warehouse to store all of your items, package them with your own branding and then ship them out. However, if you’re designing your own clothes and plan to hire others to help you produce them, then a design studio or even an office might be more applicable to your situation.
2. Are you in a good financial position to rent a space?
Once you’ve identified that renting out a business space is a good idea, it’s time to think about your financial position. In short, renting a business space needs to be a profitable venture that will eventually payback for itself. If the amount of rent you pay each month doesn’t equal or exceed that of what you’re making, then it’s going to start getting expensive really quickly. If you’re in the negative for well over 6 months, then you’re probably not doing very good and should consider switching up your business.
However, if you are in a good financial position and you are making enough money to pay for the rent for your business space, then you’re probably going to do fine. Just keep in mind that expansion means investing money to make more money. If you expand, you’re going to need staff and more products in order to pay for the costs. Make sure you’re using your current financials to try and predict how much you’ll be spending in the near future.
3. Check the history of the place that you’re renting
Make sure you’re not neglecting the history of the place that you’re renting. Some things you should look out for is damage to the walls, utility problems (such as broken power sockets or leaking taps) and also the history of the building itself in terms of who’s rented it out. If you’re renting a space that has historically been very problematic for its owners, then you may want to avoid it unless you’re confident that you can renovate it.
Speaking of renovation, you should also consider that as a cost of renting the space. For instance, you might need to contact soft story retrofitting contractors to help prevent your rented space to survive the impact of earthquakes and adverse weather effects. Make sure you get a full history of the building before you invest in renting it so that you know what to expect in the future.
4. What do you plan to use your business space for?
If you’re going to rent a business space then you better know what it’s going to be used for. A lot of people fail to realize that a business space can be used in many different ways. Even something like a dusty warehouse can be turned into a brand-new creative design studio if you put in enough effort. When scouting out different locations, make sure you do your research and try to envision your ideal workplace in the areas that you’re renting. If you have a goal in mind and spend time to draw up plans, you’ll have far more success when it comes down to look for the ideal business space for your company.
Once you figure out what you’re going to buy and where you’ll put certain items, it’ll boil down to how much floor space you’re getting in the rental and how easy it is to expand the amount of space you have. It’s worth taking the time to plan out your first business space and consult your staff members or other experts to help you make decisions in planning your office or store.
5. What are your future plans for the space?
Whether you plan to purchase it outright, expand it with renovations or move on, planning your next future move might actually be a cost-effective way to grow your business. For instance, if your business is currently growing at an accelerated rate, then you might be able to skip some early steps such as moving into a small office.
Instead, you could actually wait a while and move into a larger office later in the future while staying put in your current working arrangements. This is especially effective if you’re relying on remote workers and don’t really need an office right now. In many cases, holding off and waiting for future developments might be a smarter choice than renting a small office or retail store as your first business space.
We hope that this article has been a useful one. We firmly believe that a successful business space rental can be a motivating outcome that pushes you to try harder. It also solves many frustrations that could arise, it prevents any financial mistakes from happening and it gives you a lot of freedom. Make sure you focus on these five tips on how to rent your first business space and you’ll find that growing your business can be just a little bit easier.