Q: I have outgrown my home office and need to find office space for me and two part time employees. I am really excited about opening my first official office, but never having rented commercial space before I don't know anything about how this process works. What are some things I should consider before signing a lease? I'm really eager to get started! -- Jay P.
A: Congratulations on the growth of your business, Jay, and I understand your excitement. Putting your name on a commercial lease is one of the first tangible commitments an entrepreneur makes to his or her business and searching for that first office or retail space can be a truly invigorating experience.
We entrepreneurs like to imagine ourselves as modern day explorers, going out into the cold, cruel, commercial world to plant the company flag in our own little piece of rented real estate. I remember that feeling of triumph when I rented my first office so many years ago. Funny how you never get the same feeling when laying claim to future office space. For us old timers searching for new office space is about as exciting as watching paint dry on a new office wall.
For entrepreneurs who have never rented commercial space before, however, moving into that first office or storefront serves to validate their membership in the Official Entrepreneur's Club and makes them feel that they have arrived.
They are like business-minded debutantes at a grand cotillion. They stage an elaborate ribbon-cutting ceremony that involves the mayor and a pair of giant scissors. They invite the entire membership of the chamber of commerce, all their customers and vendors, total strangers they meet on the way to work, and all their friends and family. The more the merrier!
There's a big cake with their logo on it and they hand out twenty-five cent pens that have the company name screened on the side and a good time is had by all.
Then reality sets in and they realize that they used one of those twenty-five cent pens to affix their name to an ironclad lease that is invariably slanted in favor of the landlord. By the time they use that pen to sign the next month's rent check, they often find themselves sitting in a leased space that does not suit their needs, staring at a 5 year lease that they really don't understand, wondering just what the hell they have gotten themselves into.
Many entrepreneurs get so caught up in the swell of their first commercial space that they fail to look beyond their immediate needs. You can't predict the future, but the biggest mistake you can make when leasing space is to put very little thought into whether the space will suit your needs for the long term.
So my first advice to you is to curb your excitement and call in a professional to help you find the perfect space for your business. A good realtor or commercial leasing agent can not only save you time and money, but can also help you avoid mistakes that can cost you thousands of dollars over the course of your lease. They can help you locate property, negotiate with landlords, and possibly spot problems with the space or neighborhood that you might have missed.
My second bit of advice is this: once you find a space that suits your needs have an attorney look over the lease agreement before you sign it. A commercial lease is a legally binding agreement that should not be taken lightly. I have found that many entrepreneurs never even take time to read the lease until they try to get out of it, which is always impossible to do. When you sign a lease on behalf of your business, you are the one on the hook for the remaining cost of the lease should your business decline and no longer have revenue to cover the rent. It's worth the money to pay an attorney to make sure you that your interests are covered.
My third bit of advice is to imagine your needs down the road, not just in the here and now. Rarely will you find a landlord willing to grant a one year lease. Most leases are three to five years in length, which means you must take future growth into consideration when looking for space. It wouldn't be wise to sign a 5 year lease on a 1,000 square foot office if you think you might outgrow the space within a year or two. That's why it's a good idea to request a clause in the lease that gives you an out if your company outgrows the space.
Here are a few other points to consider when shopping for commercial space:
Location, location, location. Is the location convenient to your customers? Is the neighborhood growing or going downhill? Are there major improvements or renovations taking place or are businesses moving out in droves? Also make sure the property is zoned for your kind of business.
Is there sufficient parking for customers and employees. Parking is especially important for a retail store, but also for any business that may have customers coming and going. Very few customers will park four blocks away and hike back to your door. A lack of parking can drive you out of business.
How many employees do you have? The amount of bodies inhabiting the space will help dictate the amount of space needed. Employees get awful grumpy when stacked up like cordwood (trust me on this one). You should have enough space for everyone to work comfortably.
When leasing commercial space the devil is often in the (overlooked) details. If you will be using computers and lot of electronics, make sure the building's electrical system will support your needs. It's a terrible feeling to turn on your computer and blow every light bulb in the place.
If you like a quiet work environment and your office windows are twenty feet from the street, you'll be in for a rude awakening when the rush hour traffic hits.
If the air conditioning in your office is controlled by the thermostat in a neighboring suite that is inhabited by an old lady who freezes in ninety degree weather, you will be in for a very long, very hot summer.
Since locating the perfect space is only half the battle, we'll look at the specifics of a commercial lease in next week's column.
Here's to your success!
Tim Knox
Tim's latest book is "The 30 Day Blueprint For Success!" We asked 58 Top Internet Money Makers: If you lost is all tomorrow and had to start from scratch, what would you do to be back on top in the 30 days? Their answers just might make you rich!
Related Links:
http://www.prosperityandprofits.com
http://www.prosperityandprofits.com
Q. I am a former pastor who left the ministry... Read More
Why does consistency in the message have an effect on... Read More
A tongue-in-cheek look at the skills required to operate a... Read More
So it's time to invest some finances into advertising your... Read More
Here are just a few ways to increase and diversify... Read More
The following are six essential skills to business success. You... Read More
When is advice free and when should you charge for... Read More
Are you thinking of starting a small pressure washer business... Read More
Pet Transportation Services are needed as the number of pets... Read More
So there I was ? sitting in the audience of... Read More
Most new small businesses won't be in business this time... Read More
The FTC, Federal Trade Commission, is considering modifying the franchise... Read More
The easiest way to lift profits is to cut the... Read More
We are noticing an increase in the length of time... Read More
To have one of the popular in home daycare businesses.... Read More
Today required franchise disclosure documents are over 200 pages generally.... Read More
Someone new to business ownership recently told me, "Before I... Read More
Here are some useful tips on what to consider before... Read More
If you're organized, smart, capable and willing to work with... Read More
This morning, I went to take a short walk outside.... Read More
Macon, GA goes after garage-gas station conversion detail/hand car washes... Read More
How many hours do you work a week? When was... Read More
Purchasing a franchise has become one of the most popular... Read More
A thing worth doing is worth doing badly. Yes I... Read More
Habit: A consistent behavior you perform so frequently that it... Read More
car service from Midway Alsip ..The American system of business management has been admired and... Read More
As the owner or an employee of a small-to medium-sized... Read More
Small business owners often enter their field with great expectations.... Read More
All cities have a purchasing office and/or a procurement officer.... Read More
Before you read any further in this article, I'd like... Read More
"Inch by inch, row by row...that's the way my garden... Read More
It is an American dream to own a business. But... Read More
Obtaining a business credit card enables the small business owner... Read More
As a franchisor I am always asked by new and... Read More
-- The One Pager Shortcut Series --An effective and compelling... Read More
There is a continual trend we are seeing which I... Read More
If you run a pressure washing company in a rural... Read More
Unfortunately for all buyers, each selling organization and their individual... Read More
"What do you do?" It just might be one of... Read More
You've heard marketing and advertising gurus quip, "Sell the sizzle,... Read More
I ran a franchise company for many years, a car... Read More
The air in my client's office nearly crackled with her... Read More
Is this you?You dreamed of owning your own business, doing... Read More
Here's why 'WHY' is such a profit-making marketing trigger."Stop taking... Read More
How do you find groups that are in need of... Read More
What image do you and your people portray to your... Read More
If you own a mobile truck washing, pressure washing or... Read More
If you're starting your own business or currently work for... Read More
Grow your Professional Organizer business by branching out into related... Read More
KEEPING INTEREST HIGH: Supervision is key to the success of... Read More
Small Business |