Small business owners tend to have a lot on their plates. In the early stages of building a brand, those in charge must deal with hiring’s and firings, internal development, finance, sales, customer service, and more. As a result, real estate often falls by the wayside. But as many financially savvy business leaders know, and the property experts at The FLH Company corroborate, it’s all about “location, location, location”. Read on for four moves smart business owners make when it comes to choosing a property and establishing office space.
Most small business owners rent their real estate needs – whether that is office space, retail space or industrial space – rather than own it. Whatever type of property you rent, you should consider renewal options at pre-negotiated, reasonably priced renewal rates – rather than fair market value. These negotiations can save you money over time and boost profits.
Choose The “Best” Location You Can Afford
If you are in retail or retail food service, generally you want an “A” location or the closest you can get to that at a rent you can afford. “A” locations typically have the highest visibility and foot traffic, which is most necessary for restaurants and shops. But you also must focus on the demographics of those who are your customers or most likely to be your customers. Are those people living or working near your location? Find a space near your customer base; don’t force them to seek you out.
Plan For Growth
For more traditional office users, you want to have options to expand at your location; if possible – on the same floor or within the same building. This way, if you are as successful with your business as you hope to be, you can grow the company and add personnel without too much disruption. It’s also smart to think about co-working or desk sharing when investing in property for your business needs. A lot of employers have staff that travels and rather than lease enough space for 100% of their personnel, they lease space for just a portion of that, knowing that there will always be 25% on the road or telecommuting or working from a remote location. You can easily research the trends in this area and rent space accordingly.
Though less traditional, there is always the virtual company. Depending on your industry, there might not be a need for a physical location for employees and vendors to congregate. If this is the case, you can keep costs down and see profits sooner. Working remotely entirely minimizes your real estate needs. New business owners should evaluate the best course of action for their company and determine what is affordable and practical for their situation. Once a business takes off there will be bigger real estate decisions down the line. It doesn’t hurt to work directly with property managers or real estate experts like those at the Frank Haney Company to discuss options and purchase space in the optimal location for your business.