New Business owner: A Guide to Your First Office Space
As a new business owner with employees, one of the first things you’re going to need to arrange is a suitable office space. While working from home can be appropriate in the short term, as your business grows it will become vital to have a dedicated office for employees to congregate and collaborate, as well as for creating a bond between staff, or having a physical point of contact for clients.
If you’re new to running a business, the idea of finding an office space and negotiating the lease can be simultaneously thrilling and overwhelming.
Buy, rent or hire?
For many new businesses, renting or hiring an office space is going to be the only option, because buying an office requires a big chunk of capital that lots of new businesses simply don’t have. If you’re fortunate enough to be in a position to buy an office, it’s wise to hold back and think about hiring an office instead, at least for the short term. As a new business, there’s a lot that can change in the early years. You may grow exponentially and require a bigger space, or you may find that the location you’ve chosen doesn’t work as well as you’d hoped.
Hiring an office gives you more freedom to change your mind further down the line, and it also presents less of a financial risk. Hiring an office space also means any existing capital you do have is available if an opportunity presents itself, rather than it being stuck in bricks and mortar.
When buying an office you’ll also have to factor in that you are responsible for any maintenance costs or construction costs, while these are often built into a lease price, so you shouldn’t be hit with any unexpected bills when you’re just starting out.
Finally renting an office space can tie you into staying in one office until your agreement with the landlord is up, although it is a financially safer option to buying during the first few months of business, there are many factors to consider.
Location, location, location
Finding your ideal location should be a priority when searching for an office space. You’ll want to think about whether your office will be best placed on an industrial business park, on the high street, a residential location, or in a city center. This will largely be dictated by the type of business you have. Are you expecting to have clients visit the office? Do you want to have a ‘shop front’ to attract passing traffic? All of these types of questions need to be considered before you settle on a location. You should also think about the convenience of the location with regards to how close it is to home, and the reputation of the area because this could affect the reputation of your business.
Amenities and facilities
When hiring an office this often requires compromises, because an office that ticks all of your boxes will be rare. When it comes to amenities and facilities, make a wish list in order of priorities. For example it may be essential that the office has some private meeting rooms to meet with clients, or you may require multiple parking spaces for your employees.
Size matters
The size of your first office space should be big enough to accommodate your existing staff, with additional room for your business to grow. An open plan office typically works well for this, because you’ll have the option to partition the space in different ways to suit varying amounts of desks and people. Avoid choosing a space that is too big, because this can feel like an empty cave with only a few employees, while an office that’s too small can be depressing and suppress productivity. Using a office space calculator can also help you determine the size office you need.
Be clear on costs
If you haven’t negotiated the terms of an office lease before, there’s a number of things you’ll want to check before making the leap and signing up. Be sure of the costs associated with the lease, because any unexpected costs can be devastating for a new business. Are there any maintenance costs required in addition to the rent? Who will be responsible for building repairs? Is any of the furniture included in the monthly cost? Is there a cost for getting out of the lease early? How much deposit is required? Once you feel confident that you know your lease contract inside-out, you’re ready to take the plunge and move onto the next exciting chapter of having a new business: moving in and making money!