Renting a first office space is a huge step for a first time entrepreneur. It’s a great step, but also one involving quit a bit. When your company is big enough and has a bright future perspective, it may be time to expand. Decided to take the plunge? Then it’s time for action. But how do you know for sure it’s the right time?
Legitimate reasons to rent an office space
Renting an office is something you do for a well-considered reason. First and foremost to create a space for staff to do their job. But this is not all. Many activities can now also be carried out digitally. What is the real added value of a physical office space? An office space offers a wealth of possibilities. Think of the following ones:
Face-to-face contact. Depending on the industry, face-to-face contact can be very valuable. A restaurant for example, cannot function without this contact. On the other end of the spectrum there are graphic designers doing computerwork 99% of the time. This can easily be done at home. How valuable is direct contact with potential customers or partners for your company?
Collaboration. Renting an office space is not just about physical growth. Creating a culture of collaboration also provides quality incentives. By keeping the rope tight, you can take action swiftly. This has a positive effect on both relationships and the degree of work improvement.
Focus. A place where you can work on a certain project with your full concentration. That’s the idea of a productive workspace. Little distraction ensures everyone can let their creativity run free. Combined with hard work, this results in a positive future outlook.
So are you looking for one or more of the aforementioned benefits of a physical office space? Then the motivation to rent an office is present. It’s time for the next step: to see if you are financially able to make such decisions.
The possibilities in renting an office space
When renting an office space, finance is obviously a major part of the decision. The fixed costs of the company will increase. In most cases, a fixed amount must be paid monthly. It is therefore important to take the following aspects into account:
Presence of financial resources. It is a wise decision to create a complete overview of the financial resources your company has. A lease contract should not pose a huge risk to the company's continued existence. Listing all financial aspects is something many entrepreneurs forget in their enthusiasm. By checking all financial details beforehand, you’ll put yourself in an ideal position for finding the perfect options.
Determine the budget. After you have a clear overview of what is financially possible, it’s time to determine your budget. Renting an office space can be seen as an investment. However, a huge gamble might not be the most sensible option. So find out well in advance what the extra costs mean for the company and whether this is within the company’s budget. This way you ensure that your company will remain financially healthy in the future.
A footnote: some companies simply grow very fast. The moment you’re sure this growth is continuous, taking a risk may be the right thing to do. In that case you may have to go over your budget regarding renting an office space.
It’s a good thing to take future growth into account, always. Renting an office space that is just enough for the current amount of staffmembers isn’t a very wise things to do. More often than not you see a company needs expansion after a while or worse: move to a bigger office after just a year. Make sure you know how large the expected average growth is. When doing this, you prevent unnecessary stagnation of the company. At first glance, this does not seem to be a risk, yet many successful entrepreneurs admit that they were too conservative. If the right indicators of a bright future perspective are present, then it just may be a matter of courage.
Taking the big step
Renting an office space is a momentous step for a young company. By doing this the right way, you look back on it as something extremely positive. With the right knowledge and a well-prepared checklist, you’ll increase the chances of success. Try to use and implement the aforementioned information in order to start your office adventure in a responsible way.