Starting a business can be an exciting process. It’s exhilarating to take your ideas from the conceptual stage into reality. Before you can get your company off the ground, you’ll need to figure out your office strategy. And there are more options available to small business owners today than ever before. Here are five different commercial spaces to consider for your small business.
There has been a lot of talk about the decline of brick-and-mortar retail. While many of these proclamations are true, there’s still a need and demand for stores with physical locations. Most small businesses will need to enter some form of lease arrangement to move into a storefront spot. There are a few ways landlords might calculate your rent:
- Base Rent: This is simply a sum you pay every month (or other time period) to the owner of the leased property. This is the most basic form of payment plan.
- Net Lease: The store owner will pay rent, plus some of the other expenses associated with the property. These might include taxes and maintenance costs.
- Fully-Serviced Lease: Landlord covers net lease costs; but the tenant will likely have to pay a higher-than-base rate.
Many businesses need to have a physical store in order to find any form of success. It’s critical you take care in calculating lease costs versus projected profits if you go this route.
Many companies are transitioning to a remote working model. This means that employees telecommute from their homes or other location with an Internet connection. There are a few distinct advantages to this setup. First, you don’t have to pay for a physical location, which can save small business owners thousands of dollars per month. Remote office setups also typically require lower expenditures in other areas. Compare small business insurance quotes to see how utilizing a remote format can lower your monthly rates. One of the downsides to a remote office plan is that not all individuals can self-regulate their workflow. Distracted workers can cause you to fall behind on deadlines.
Co-working spaces are one of the hottest new trends. Essentially, these spaces allow individuals or companies to share a communal office space. When done well, co-working spaces can be an invigorating, collaborative environment. You may even meet new people there who can help with certain aspects of your business. The obvious drawback of co-working is the lack of privacy. Even private conference rooms can feel public when the people outside aren’t your own coworkers or employees.
Sure, a warehouse space doesn’t make sense for all businesses. They are often isolated from the most traveled streets, which can really deter people. It also reduces the chance of someone visiting the business on a whim. On the other hand, warehouses can be great for specific types of companies. They work well for niche stores because people will travel to these establishments regardless of location. Warehouses usually offer better value per square foot than prime real estate. This can be extremely useful for businesses that have an inherent need for a large inventory facility.
This approach obviously isn’t viable for all small business owners. However, for individuals with a bit of available capital, purchasing a building can be a smart move. Instead of paying rent to a landlord, your company will be building equity with its own property asset. It’s essential you choose the right location if you’re going to buy a property. You want its value to increase over time. You need to be confident in your ability to make money if you’re going to assume this a significant amount of debt like this. Small business owners have many options for finding the right fit for commercial space. Individual needs and budget restrictions will determine the best path for your company.