Save Money on Commercial Space with These 10 Helpful Tips

Save Money on Commercial Space with These 10 Helpful Tips

For every successful business, there comes a point where you outgrow the kitchen table or garage.

Getting a bigger space becomes essential for growth.

Growth
Source: Abbi Waxman

The question is, how do you find a perfect space for your business to thrive?

  1. Know your budget. Do not go over your budget.
    • Get a space that will allow you to continue growing. Be economically minded when space shopping.
  2. Know your businesses needs.
    • Different businesses will prioritize different factors. Trucking and distribution will have a different priority set compared to an IT company.
  3. Leave wiggle room in your operating budget.
    • Know the issues that may arise for your unique business.
    • Keep a rainy day fund for vital equipment replacement.
  4. Know your personal AND business credit score.
    • Especially vital for newer businesses.
    • In lieu of business history, a personal guarantee can sometimes gain lease approval.
  5. Do NOT sign a lease that does not make sense for your business.
    • Consider the needs of your business a timeline. Why sign a 54 month lease when you may need more space in 36 on your current growth rate?
  6. Read. Your. Lease.
    • This contract is going to be a vital piece of your business going forward. Know it inside and out.
    • Ask questions! Never leave anything to an implicit meaning, ask for explicit clarification.
    • Negotiate! Until you sign, many things are up for negotiation or discussion. The worst the leasing firm can do is say no.
  7. Calculate your moving and logistics costs.
    • Moving trucks, personnel, tech installation, etc. all come into play here.
    • Consider moving mid-month to minimize downtime once paying rent.
  8. Secure all items of value.
    • Don’t leave tools, electronics, and other valuable items visible from the outside. Especially do not leave them in any company vehicles.
  9. Know your subletting rules.
    • Subletting from another business is a great way to get the space you need without paying the full market rate.
    • It can also make you some good money if you have space to spare.
    • Check with your leasing company to make sure you are permitted to do so in your lease.
  10. Have questions? Ask them!
    • The last thing a property manager wants is an unsure or uninformed tenant.