When you are starting your business out, you will need to obtain office space to work. Rental costs and other leasing expenses have gone up in recent months, and it might seem intimidating to get a space, but there are ways of understanding the expenses around these costs. This can help you reduce your expenses.
How Much Space Can You Afford?
You should take some time to determine how much space you are able to afford. Just because the space itself seems perfect does not mean you should spend so much money on it. Usually, you will want to spend around two to 20 percent of your business income on the rent. Your industry and situation will likely determine exactly how much goes toward your rent. If you are finding you can’t afford office space with this amount of money, you may want to look for other sources of funding as well. If you want to put any of your own money into your organization, you might try lowering your own expenses to free up business funds. One option would be to refinance your student loans to a new one. A student loan refi often gets you more favorable rates and better repayment terms, and can free up extra money along with careful budgeting.
Pick the Right Size
Consider the square footage, as this is one of the most important factors in what your monthly rent will be. You should aim to have about 125 to 225 square feet of space for each person who will be working in the office. You will usually pay a certain amount of rent per square foot. Ensure the space is not so big the extra space is going to waste. You also want to make sure it is not too small, as employees might not have enough room to work, and this can affect overall productivity.
Consider Amenities and the Layout
A good layout can help you make the most of every square foot you have. If you need dedicated work areas, large conference rooms, or an open floor plan, make sure the place you are renting meets all these specifications. If you have an inventory on hand, ensure there is enough storage to hold everything. Security and parking are also important. Think about how easy it will be for customers to get in and out of your spot. This will also affect employees and might be one of the things they consider when deciding if they want to work for you or not.
Think About Location
The area you are in determines the cost of rental, but it can also determine how successful your company is. If the area is high-traffic, more customers will likely stop in. If a high concentration of the target audience lives in a specific spot, this could be ideal for your startup. Of course, these can be hard to find, and when you do find them, you will likely pay a premium. Do your research when looking for an office rental for your startup. Think about how you want to balance location with amenities and price.