Your startup business has the potential to become a lucrative career, not to mention the freedom and flexibility that come with being your own boss. However, running a startup business brings many responsibilities that must be taken care of, in order to give your business a chance of being successful. One of those responsibilities is choosing an office space for your business. Every company needs an office sooner or later, depending on the nature of the business itself.
But, this decision is not easy to make, regardless of how simple it may sound. You have to decide on the space itself, location, equipment, purchasing or leasing the space and so on. Most importantly, you have to be extra careful not to exceed your budget, as well as add office space costs to the list of business expenses. One simple mistake and your office may become a liability instead of a benefit. Here are a few things to consider when choosing a workplace for your startup.
It's no secret that many startups struggle financially. It's important to spend your funding wisely, in order to properly develop your startup business. Now, office space is an important stage in your startup's growth, but you shouldn't rush to acquire one. As long as you can do most of the work from home, you should avoid considering a workplace for your startup. The main reason to delay getting an office is purely from a financial standpoint.
As a matter of fact, getting an office for your startup requires a lot of funds. For example, costs of rent, bills, taxes and maintenance, not to mention costs of purchasing office supplies and necessities. All of these additional expenses may strain your budget significantly. That's why it's important to wait for the right moment when your startup business actually needs an office, in order to grow further.
Startup business owners don't have the funds to actually buy an office space in most cases. That's why many owners opt for leasing a workplace for their startup. Leasing an office space gives you more flexibility, but you must consider the time frame on how long do you intend on staying at one place. The fact of the matter is that startup businesses are quite unpredictable. Most landlords demand a lease to last at least five to seven years.
That's too long for a startup business to be held in one place. If you need a bigger place after a year, you'll still be bound by contract and you won't be able to look for another space. You should consider a shared working space instead of leasing an office. A good example is a serviced office in Melbourne, Australia. That way, you'll have everything you need to run a startup business and the lease won't last nearly as much.
As mentioned before, deciding on an office space is an important and a big decision. You must consider your business goals and needs before deciding on an office space. For instance, do you plan on hiring more employees anytime soon? If yes, then make sure you look for an office that has more space available, so that you can accommodate new employees.
Moreover, if you plan on holding meetings with either your employees or business acquaintances, then make sure there's enough space to fit a conference room. More importantly, you have to choose the right location. Depending on your business goals and needs, the location of your office space will play a vital role. The location of your office, will determine how functional and flexible your startup business will be.
Every business decision, including getting an office for your startup, comes down to finances. An office doesn’t come cheap; you have to pay attention to how these new expenses affect your budget. As you already know, there are costs, such as bills, taxes etc. However, the costs do in fact vary depending on the size of your office space, the number of employees you have and the amount of technology or appliances you have in your office.
Startup businesses do not always have a steady cash flow or positive revenue. Therefore, additional office space costs may lead toward financial issues. Make sure you have a detailed budgeting plan that will help you calculate all the expenses, as well as help you determine if you can afford an office in the long-run.
Choosing a workplace for your startup may not be the easiest choice you ever made. Still, if you consider all the important factors and calculate your budget accordingly, you'll eventually find an office that's ideal for your startup.