Moving the startup from home to an office space is one of the most important decisions you will make. It signals that growth started and that your idea is becoming a reality. Simply put, you want to start seriously thinking about moving to the office space whenever there are finances available for that. Obviously, this is not as simple as it may seem. One of the really common mistakes made, as an example, is improperly calculating expenses and an ability to pay the new office space. There are also office supplies that will be needed, together with expenses associated with transportation, furniture, office supplies, internet, phone, electricity and much more. A rent that you initially get at $2,000 every month can become $2,500 per month when factoring in all the extra expenses.
Besides having to figure out costs, it is important to determine exactly what can be afforded and what cannot be afforded. Additional fixed costs have to be added to the financial model in order to be 100% sure that office space can be afforded. This is something that varies from one industry to the next but generally speaking around 10% of revenue should be spent on office space as tops.
Can You Afford The New Business Office Space?
If you believe that your finances are in place and you can move to an office space there are some extra things you will need to consider. For starters, you have to realize what office space is the right one for you. The modern market offers so many different options. Leasing out a regular office space is just the first one. Being a member of a special office network built under a coworking agreement is an opportunity.
Coworking spaces are normally perfect for startups because of the affordable monthly rent price that usually ranges between $500 and $2,000, all based on how many amenities are going to be available like internet support, phone support, conference rooms, office supplies and concierge. This is an option that is normally not good for the startups that grow really fast or that are going to hire many in the near future. Also, various rules would have to be respected and some additional fees may have to be covered for some premium services.
You can also opt for a traditional office space. It will be more expensive and you will spend more time managing than using the office network but the control that you are going to gain is a lot higher.
Finding A Traditional Office Space
Eventually, even if you opt for the office network, you will surely want to transition to your very own office space. In this case you should discuss with specialized real estate brokers that know the area where you are interested in renting. Think about how much office space you need now and in the near future. Growth should be factored in but being realistic is very important. Do not rent out more space that you are going to need in the following year or two. The broker can find various office locations that fit the criteria you offer. Visit the space and always sign deals with the help of attorneys to be protected on all fronts.