Whether you're thinking of making the move from a home office to
leased office space or you are establishing your business in a
commercial environment, renting office space is a big decision – and one
that requires careful thought and forward planning.
The good news is finding your first office space is usually a sign
that your start-up is beginning to expand and flourish, and means that
you're ready to take the plunge and find a more productive environment
from which to run your business. But there are both monetary and
strategic issues to take into account, and these 10 golden rules will
raise important issues for you to consider before leasing your first
office space:
1 Make sure you're in a position to commit
Leasing office space means committing to a commercial office lease -
and this is a legally binding agreement that will tie you in to a
contract for a given period. You must ask yourself whether the move to
leased office space will enhance your business and the services you
offer, and that it will enable you to be a more profitable and
productive business. An office lease is a big responsibility to take on
and as a small business you need to make sure you are clear about the
commitment and at the right stage to move on to a “real” office.
2 Ask yourself – can I afford it?
It goes without saying that a new office will tie you to regular
monthly costs that you may not have had to consider until now. These
will include rent, service charges, business rates, maintenance costs,
insurance and the day-to-day running costs. Make sure you are fully
aware of all the costs from the outset and that you don't overstretch
yourself financially.
3 Don't try to do it yourself!
Finding the right office and then negotiating the right terms for
your business is a time-consuming and complex process, so you should
never attempt to take this on yourself. Use a commercial property agent
in your area who knows the market inside out and can “hold your hand”
throughout the process to ensure a profitable outcome for your business.
4 Make sure the lease is on your terms
Every office lease is different, yet they are usually drafted in
favour of the landlord. Decide what office lease terms are best for you
as a tenant; consider issues such as lease length, rental increases,
options to renew, break clauses, etc. Clarifying these issues at an
early stage will save lots of upheaval at the negotiation stage.
5 Do your homework
Do your homework on your shortlist of properties; tour the building
several times; investigate who the landlord is and other properties they
own, traffic patterns, who the previous tenant was (and why they left)
and who the neighbouring tenants are.
6 Evaluate the building
Evaluate whether the geographical location, space and type of
building is a good fit for your business. Your choice of office space
says a lot about you as a business and you want to make sure it gives
the right first impression. Use our office space checklist as a guide to evaluate each office building.
7 Consider future growth
Make sure that any space you’re considering is big enough for both
your current needs and your foreseeable growth. Be realistic and don’t
under- or over-estimate your true needs.
8 Get professional legal advice
Hire a property solicitor who not only specialises in lease
negotiations, but who also has dealt with start-ups before. A lease
negotiation can cover hundreds of terms, often with confusing jargon,
and you want someone who will represent your best interests and
clarifies anything you don't understand.
9 Take advantage of the opportunity
Moving into leased office space provides you with a great opportunity
to find the right office suppliers and install the right business
communications systems that will enable you to operate efficiently and
provide the best service to clients.
10 Don't rush into anything
Don't be rushed into making a decision if you're not fully
comfortable. And if the lease negotiations don't quite come out as you
planned – be prepared to walk away. There are always other properties
that may better suit your needs.
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