In the decision to move your small business from your home to an office space, a major factor is the financial cost and opportunity cost of the move, which can be pricey and time-consuming.
Read on for some tips on streamlining this process and making sure you get the best deal for the time and money spent.
1. Less is More
More and more landlords are dividing up larger spaces to accommodate tenants who don’t need a whole lot of area. This means more options for tenants to consider, and thus could be an advantage for entrepreneurs who want to spend as little as possible. Some businesses simply don’t need a whole lot of square footage. Keep in mind that if you have a smaller space, you’ll probably spend less on furnishings as well.
2. Negotiate Lease Terms
As a start-up business, you’ll probably want to have a shorter lease rather than a longer one. It shouldn’t be difficult to negotiate a longer-term commitment later down the road, so for now, stick to a shorter lease term. Firstly, you can’t be sure exactly how long your business will stay afloat or, better yet, how fast it will boom. However, if your business is established and doing very well, consider signing a longer lease to lock in a cheaper rent.
3. Prepare for a High Security Deposit
Security deposits on office spaces tend to be more than security deposits on homes. Moreover, landlords will often ask for a letter of credit, as well as a written personal guarantee, to pay the deposit. An exception is subleases, which generally won’t be more than a couple months’ rent.
4. Look Up Your Landlord
It seems strange to reverse the tables and look up the landlord, but times have changed, and it’s important to make sure that the building owner is a creditworthy individual.
5. Negotiate The Rent
Depending on where you are renting, you might be able to swing a better deal than the one you are offered. This may not be feasible in populated areas where the real estate industry is highly competitive, like New York, San Francisco, or Boston. In less populated suburban areas, try negotiating the upfront price, or even asking for a cap on future annual increases.
Biz2Credit can help you find your way in the small business world. Loan specialists can help you navigate through any array of options and find the one most suited for your small business. Visit our website or call (877) 861-2210 for help today!