As a business owner, you need to spend money in an effort to make money. However, there is a fine line between investing in your company’s future and throwing cash away. Let’s take a look at some of the variables that you need to think about before leasing an office building or space inside of an office building.
How Much Space Does Your Company Need?
If you are running a startup that sells goods online, you may not need an entire building. Instead, a you may be able to get away with renting a floor within it. However, if you are running a company that does millions of dollars in sales each year, it may be a good idea to rent the entire space instead.
How Much Can Your Company Afford to Spend?
The best way to keep yourself from overspending on an office lease is to know your company’s rental budget ahead of time. This may make it easier to find a space that is affordable while also helping you to structure the deal in a way that makes sense for the company.
For instance, you may want to sign a multiyear lease that comes with an out in the event that your sales decline for some reason. It may also be important to have a clause that allows your organization to pay a reasonable fee to leave if it keeps growing and needs more space in the future.
Don’t Look at Rentals Alone
After reviewing your sales figures from previous year, you may be able to determine how much space your company needs and how much it can afford to spend. However, it is never a good idea to look at rentals by yourself. At the very least, take a real estate agent or a trusted colleague with you.
This can make it easier to take the emotion out of a deal or give someone else an opportunity to review a lease before you sign it. It may be ideal to bring someone who is a shrewd negotiator or who could otherwise increase your chances of crafting a deal that is in your favor. Going online to sites such as http://sfofficespaces.com/ before starting your search may also be worthwhile.
What Happens if the Property Changes Hands?
In many cases, a lease is valid even if the building is sold or otherwise changes owners. However, it may be a good idea to negotiate an out clause in the contract that allows you to leave if that happens. This can protect your company from a landlord that wants to raise rent or otherwise takes actions that are against the law. While you may win a judgment against a landlord for taking such action, taking that legal action could rob your business of time and money that could be better spent elsewhere.
Having an office outside of the home could take a sole proprietorship or small business to the next level. Those who are interested in a dedicated office or retail space should be sure that the company is ready to absorb the fixed cost of leasing one for the next several years.