5 Money Saving Life Hacks For New Business Owners: Five Part Series|
Part 2-Office Rental Hacks: Choosing The Most Cost Effective Space
Today marks the second installment of my five part series ” 5 Money Saving Life Hacks For New Business Owners”. The focus on today’s post is ” Office Rental Hacks”. Today, I will be sharing tips on how to pick the most cost effective rental space as a business owner. Let’s get started!
I have found that when many people decide to open a brick & mortar business, they decide that they want to go ” all out” and get the biggest office, the biggest square footage /space and more. However, for a growing business ( especially a business that is just starting out and building a customer base), I believe it is best to start out small. Resources and Budgets can quickly become depleted when starting a business, and a large factor affecting this involves improper planning when opening an office or storefront.
Do you need an office?
The first element that should be determined is whether or not you actually need an office. There are many reasons that people acquire office space. Some people simply desire a private place to work without the distractions of their home. Others constantly meet with clients, and seek a private location to meet with their clients ( as an alternative to restaurants). Some are in product based businesses and need a storefront to showcase their products and items. It is important to assess the need for an office before acquiring one. We will discuss this in more detail in a future post after our series ( stay tuned).
Private Office vs. Retail Space
There are some great elements to renting a private office or retail space. Overall, in relation to cost effectiveness, renting a private office in a business suite will often be more cost effective then renting retail space. In a private office, rent can be as low as $600 ( lower depending on city/region) and higher than $20,000. Location and size play a major factor in pricing. However, for businesses that are able to do so, I prefer the private office option to the retail space option for many reasons.
#1. Security is usually already included
In a private retail location, you are responsible for providing your own security system a lot of times. This could create excess fees ranging from $100’s to $1,000’s of dollars more a year. Security cameras and monitoring will also require additional money and budgeting. Most office spaces already have an in-house security guard, and patrol company that monitor the premises, and these fees are usually already built into your monthly rent. This is not to say that retail spaces do not offer patrol services as well, but security is usually significantly less.
As a new business owner, you want to keep your profits high and your expenses low. A private office provides a cost effective way to do that. Retail space ( especially in high traffic areas) can be fairly expensive. It is up to each person to discover what space will work best for them. Though a private office is cost effective, it may not be the best option for people in various industries such as the Clothing/ Fashion industry, who need to be visible to their consumers. In this scenario, a retail space may end up working out better for that person. However, even in this case, it is important to determine what the best space/most cost effective space is. Remember to research, budget and study the area you are interested in doing business in before acquiring space.
Shared Space & Co-working
Another great option for office space is Shared Space also known as Co-working. These office options have become increasingly more popular over the last few years. Wikipedia.com describes co-working as a style of work that involves a shared working environment, often an office, and independent activity. Unlike in a typical office environment, those co-working are usually not employed by the same organization. Co-working provides a cost effective way to utilize office space. Many memberships offer day rates, monthly rates as low as $75 for a few days of office use a month, as well as business seminars and the opportunity to work and collaborate with other business owners, startups and professionals. This is a great budget friendly option for new business owners.
If this post has helped you in any way, please share with others who may need this information. Stay tuned for the next post in our series entitled “Marketing Hack: Cost Effective Marketing Options for Small Business Owners”.
Until next time, stay smart cookies!