For every successful business, there comes a point where you outgrow the kitchen table or garage.
Getting a bigger space becomes essential for growth.
The question is, how do you find a perfect space for your business to thrive?
- 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.
- Know your businesses needs.
- Different businesses will prioritize different factors. Trucking and distribution will have a different priority set compared to an IT company.
- 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.
- 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.
- 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?
- 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.
- 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.
- 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.
- 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.
- Have questions? Ask them!
- The last thing a property manager wants is an unsure or uninformed tenant.