Small Business Expert
Your resource for informative videos, articles, and tools to save you time running a successful small business.
Small Business Documents & Forms
Starting or already running a small business? We have fully customizable business forms and legal documents that will help keep you organized and well-documented. Available for immediate download after purchase.
Visit The Form Center
Five questions to ask yourself before hunting for office space
Many small business owners have launched companies out of their homes. But if you're going to be the leader of a world-class organization, you can't operate out of a guest bedroom forever. You need a real office, with a reception area and a breakroom with decent coffee. But before you commence the hunt for your future world headquarters, take some time to consider these points.
Should I buy or lease? Most small businesses in startup mode opt to lease space to minimize their debt ratio. However, don't assume that leasing is the smartest route.
"The market should be a factor in your decision too," says Lise Wineland, an office specialist with NAI Commercial Industrial Properties Co. "For instance, if you have a small business in California and you're relocating to Austin, Texas, where prices are much lower, that could present a great investment opportunity for you."
How much space do I need? While a professional space planner can estimate how much room you need to run your business comfortably and efficiently, Wineland says it's helpful to know the answers to these questions:
- Do you prefer a cubicle system or hard wall offices? Cubicle systems generally require less square footage.
- Do you prefer dedicated restrooms for your employees or are you willing to share with other tenants in the building?
- Will you need conference rooms?
- Do you want to provide a breakroom or kitchen for your employees?
- Will you have many visitors? If so, your specifications should include a lobby or waiting area.
- Will you need on-site storage for supplies, inventory, or office equipment?
- Do you plan to increase your workforce in the next few years?
Where should I look? In these days of high gas prices, location can have a huge impact on your budget, and on your employees' pocketbooks. Take into consideration commute times for staff, as well as driving distances to vendors, customers, and other routine business destinations. Also, be mindful of public transit systems if many of your employees use these services.
What should I look for in an office building? Office buildings come with a plethora of features and amenities. Keep in mind the following when you're touring properties:
- Is there dedicated parking for staff and visitors?
- What safety, emergency, and security systems are in place?
- Is the building compliant with the Americans with Disabilities Act?
- Is there appropriate infrastructure to support my company's technology needs?
- Does the office incorporate energy-efficient systems that could lower my operational expenses?
- Is there ample room for growth if I need to lease more space in the near future?
What kind of expertise will I need to hire? You don't have to embark on this journey alone. There are professionals out there who can help you. A financial advisor can assess what you can afford. Once you find a property, an attorney can review the lease or purchase agreement to ensure that the terms are in your best interest. Also, a space planner can help you make the best use of your new office - from electrical logistics to productivity flow.
And when it comes to finding a broker, Wineland says referrals are your best bet.
"Ask around your professional network to find out whom others have used," she says. "You want to find someone who is a good listener and who understands your needs. A broker will sift through the inventory, tour the properties with potential, and guide you through negotiations. They are there to give you the plan you need to find the right space and help you stay in it."
