Starting and growing a business is a journey whose success will depend on the key decisions you make. According to the Bureau of Labor Statistics, it estimated that 20% of new businesses fail in the first two years. Well, while many factors contribute to the stats. One of them is picking the wrong premise for your business! You are perhaps wondering what makes a good business premise. Well, this guide is for you. We have detailed the process of choosing the best business premise to help you make better decisions.
Look at your business plan
The first step in choosing the best business premise for your business is looking at your plan. What does your business plan look like? Where do you see your business in five to ten years? Will you have scaled to an agency, gone global, or, maybe multiplied your workforce with numerous departments? Such plans and goals do affect your choice of a business premise. It influences other major factors such as the office size and the decision as to either rent or leases property.
Consider the Location
Imagine setting up a business premise in an isolated place or street? It would be detrimental to your business. This is why choosing your business location is a very crucial aspect of your business. In fact, it has a huge impact on your finances, employees, and customers, etc. You are better off asking some critical questions as you hunt for a good location:
For example, can your customers and staff access the place? What is the future of the location, what is the competition around that place? What are the ordinances and other restrictions that might affect your business? Asking all these questions will ensure that you don’t move to a place then move out a month or two later.
Now that you have found the perfect location, you can now start considering the size of the space. The size that you need is determined by several things. For example, look at the number of employees that you have, future hiring needs, budget, office needs, inventory space, etc. As a general rule, it is always recommended to have 70 square feet per person.
So, as you look at the size, you need to ensure that you can get at least that for your employees and more. You also need to ensure that you can get some meetings, and rest space for both your employees and clients. Keep in mind that a cramped office reduces productivity; the choice of your office space impacts your employee’s well-being. Try not to skimp on the floor space for Budget sakes. Strike a balance, and get something that works perfectly for everyone.
The cost factor is inarguably the elephant in the room. Almost everything we have discussed comes down to the budget. Before you sign any contract, you need to do some research on bill costs, rental prices, and the local tax. The goal is to find something that you can afford in the long haul. When it comes to hiring your office space, there are two options. You can decide to either lease a commercial space or rent a serviced office.
As you might know, leasing a commercial property tends to have a bigger liability or obligation as compared to renting. If you are a startup with limited finances, it is always advisable to consider the latter. This is where it is better to engage a business brokerage firm to discuss your options and determine the perfect fit option for you. A professional will help you avoid many costly mistakes that might haunt your business later. They will also match you to the right property meaning the process will be much faster for your business than if you tried doing it on your own.
Another important factor that is linked to location is security. You do not want to put up your business in a place where you are constantly worried about the safety of employees and equipment. Do some research on the area. Is the place conducive for business, or you will have to incur high costs to safeguard your business premises? You need to keep in mind that if you consider a place that has a higher chance of being affected by crime, you will pay more premiums. It is another cost you do not want, especially if you are a small business.
Consider the Competition
Looking at the competition around your potential business premise is very crucial in the process. Pay attention to the office space's proximity to competitors. With any business, it is vital that you learn to strike a balance when it comes to competition. Interestingly, having competitors close can work for, or against you. Think about it, if you are in an industry where comparison shopping is popular, having your competitors nearby is a win as it allows you to catch the overflow from existing businesses. However, if the area has stiff competition, that is going to make your marketing job tougher.
Another factor that is tied to the location of the business premise is accessibility. There are many advantages that are tied to working with an office space that is accessible for everyone. It is not just for you, but for everyone who will be using it; from your customers, employees to suppliers. Ask these questions:
- How easy is it for cars to get in and out of your parking lot?
- What sort of deliveries do you receive? Will the suppliers have a hard time bringing it in?
- What about people living with disabilities, is the office accessible for them?
- Can your office be accessed by private and public transport?
Asking the right questions will ensure that you find a place that is accessible to all stakeholders.
Being in the hunt for office space should be carried out with diligence. Well, the choice of your business premise not only affects your day-to-day operations but also affects your employees, customers, and brand image. While there are many factors to be considered, the ones discussed above are crucial in the process.