It can be financially tough to operate a startup, especially if you need to rent office space. Here are some money-saving tips for leasing office space.
Did you know that nearly 50 percent of all small businesses fail within the first five years?
The problem can be linked to several factors including poor business planning, improper market research, not having enough financing, etc. However, no matter how you dice it failed businesses all have one thing in common - they've got too much money going out and not enough coming in.
One way to combat this problem involves learning how to be savvy when it comes to leasing office space. Property and all property-related costs are some of the biggest expenses for business owners.
Keep reading to learn how to save big on leasing office space.
How to Save Money Leasing Office Space
As a small business owner, you have to learn how to compromise. Your business, location, and operation may not look how you envisioned yet, but that doesn't mean it'll never happen. When leasing office space, think about what's best for the longevity of your business's survival.
1. Be Creative
First, be creative and ready to improvise with space. Aside from being highly important skills for a business owner, creativity and improvisation will help you save money now and in the future.
Depending on your type of business, you may want to consider colocation to streamline your server operations. Colocation pricing can be quite attractive, especially for new business owners looking to save money.
2. Don't Rush
Next, when leasing office space, take your time. Don't make rushed or impulse decisions. Far too many business owners tank their business by jumping the gun and overcommitting without proper analysis.
Shop around and find the best office space that meets your needs and your budget.
3. Keep Build-Out Costs in Mind
When considering lease prices, don't forget about the work that needs to be done after you've secured the space. Additional construction and build-out costs to make your business functional need to be included while calculating your budget.
There's no point in having a beautiful space you can't use.
When leasing office space, you need to learn how to stand up for yourself and push back a little. Like you, landlords are trying to make money. However, that doesn't mean their prices or terms are set in stone.
Try to negotiate costs, renewals, price escalations, etc.
5. Know the Terms
Finally, make sure you know the terms and conditions of the contract like the back of your hand when leasing office space. You don't want to be caught off-guard by any surprise expenditures.
- Do you have to pay CAMs (common area maintenance fees)
- What utilities are you responsible for?
- When does your contract end?
- Can you extend your contract or renew it?
- Is their rent escalation each year?
- Who's responsible for repairs/maintenance, and damages?
Want More Knowledge?
Knowing how to save money when leasing office space is vital to the success of any startup or veteran business owner. However, there's also a lot more to it than that.
If you're looking for more entrepreneur advice or business tips, check out the rest of our articles. Knowledge is power, after all!