Finding the best place to situate a business seems like an issue of secondary importance to some, however, buying or renting business premises is an important investment and should be regarded as such. In fact, it is one of those decisive choices startups need to make because they cannot afford to pour money down the drain. They must secure the most affordable location, and the one that also provides other benefits at this infancy stage of their business.
A prudent businessman must consider not only things like square footage and price, but also the cultural fit and how the location will affect the sales, brand building, marketing efforts, etc. The trick is to think about the present needs and challenges, but also about the obstacles and pitfalls that await on the long road to success.
Many are not exactly looking for a suit-and-tie corporate atmosphere. One can find other startup friendly solutions such as mobile venues, co-working facilities, shared offices and accelerators. But, if you need to discuss sensitive matters with your clients and intend to welcome business partners in your premises, an office-focused space is more preferable.
Others choose to situate their operations in unconventional spaces such as a shipping container. In fact, this is a growing trend worldwide, as it offers great flexibility and cost-effectiveness. Dynamic and flexible spaces are the best fit for most startups, who are calling companies such as Royal Wolf to get their own steel box offices.
In other cases, it might be a good idea to choose an area where other startups operate, because forming connections with them could give you a boost and help you get your business off the ground. Early-stage founders can benefit greatly from knowledge and experience sharing, as well as collaboration possibilities.
This is a sound course of action for technology-minded and creative companies. Two similar startups in the shared space enjoy mutual benefits, and limit the risks associated with a traditional lease. Just bear in mind that although shared spaces may seem inviting, they can also be overwhelming and cause many distractions.
Do your homework
Some landlords are seeking to score a five or seven-year lease deals. Committing to such a long term is something that requires you to do the research and make some financial projections. Yes, it can be hard, since most startups do not know whether they will survive a year, yet alone half a decade or so. Getting locked into a long lease is something that could single-handedly ruin your business prospects.
Imagine how it would be if the number of your employees doubles or triples in the next few months? So, plan ahead and make an effort to explore all your alternatives. Renting is a more realistic option for most startups that cannot buy expensive real estate just yet. But, even when deciding to rent a workplace, one should proceed with the same caution.
Always inspect the place and see what amenities it has to offer, ranging from the parking lot to the capacity of a conference room. Ponder on your needs and wants, and determine what the acceptable monthly expenditure for premises would be. Keep in mind that there are some hidden costs like utilities and furnishing, so do not neglect a single detail.
A young, growing business should put a great deal of thought into choosing the revenue, as it should be tailored for its specific position on the market. Signing a long-term lease is a serious commitment and a decision that could make or break a startup. An office that aligns with your business goals and strategy is the only way to go. Ask yourself whether you need a distraction-free environment or shared workspace teeming with people and activity? In any case, you don’t need just any place – you want one that will ensure the prosperity of your business.