Small Business Doesn't Have Just One Address
I recently started my own company, and though I have years of industry and management experience, I found the process frightening and overwhelming.
All the planning in the world couldn’t have prepared me for the many variables and decisions that had to be made. My inbox was flooded as I worked my way through selecting the right business software and support people.
I was receiving so much information that I literally couldn’t think straight, let alone make prudent and timely decisions.
Now that the most significant decisions have been made and implemented, I’ve realized something — learning how to work on your business while also working in your business is tough. This experience has given me a fresh perspective on how my clients and fellow small business owners feel when planning a move or upgrading their space.
Start with a Plan
When designing and furnishing your office, understanding the process is the best way to prevent overwhelm and the fear of getting a bad deal.
I don’t mean you spend hours researching and building an elaborate plan. Getting educated and creating a move plan is as easy as answering four simple questions (and none of them involve measuring).
1. What Are You Currently Spending and How Does That Compare to the Market?
Start by considering your current square footage and price. Office space is marketed by price per usable square foot (USF); before deciding what to spend, you should know what you are currently paying. It’s easy to calculate:
- Find your square footage in your current lease agreement.
- If you don’t have your lease agreement, call your property manager, and ask them to send a copy.
- Once you have the square footage, calculate your current price per square foot by dividing your rent by the USF.
- When looking at new spaces, ask about other costs outside the price per square foot. Unexpected costs are the most significant reason small business owners feel that they got a “bad” deal.
If you’re not sure what or how much you should be paying, do your research. Commercial real estate firms publish market reports that provide all the information you need:
2. When Do You Need to Make Decisions?
Most office leases require a minimum 90-day notice to renew or terminate, so plan accordingly. Since you already have a copy of your lease from answering question one, read it and confirm whether it follows the typical 90-day window.
Even if you’re considering a move, it’s best practice to request a lease renewal option from your property manager. The terms they provide will give you an idea current market rate for your property.
How long will it take if you own your building and want to buy, sell, or update it? Research the market to allow adequate lead time to achieve your occupancy goal.
3. Who Does Your Real Estate Support? How?
- Is this space for your employees? Strategic partners? Community? Customers?
- Will it be used only for business-related purposes? Does it also need to function as a living space?
- If you’re offering dispersed or hybrid work arrangements or want to in the future, is that factored into your plan?
- If the goal is to conduct income-generating activities, how will you support your people and protect their quality of life?
4. Why is Real Estate Important for You?
Does it improve operational efficiency, increase sales, reduce expenses, or improve or support your brand, image, and culture? Is it purely a financial strategy that enables you to appreciate or depreciate assets?
Before deciding on the ideal strategy, understand better how growth in your company and its workforce translates into the need for space.
The Keys to Feeling Confident
Most business owners will tell you they are excited to find a new office, industrial or medical space and sign on the dotted line. And they will also tell you they are afraid to get ripped off or miscalculate what’s needed.
Who wants to pay above market for real estate, interior design, or office furniture? Or worse, make a huge investment and not get what you want and need for your business?
It’s impossible to remove all the fear and overwhelm, but you can reduce it. When moving or upgrading your office space, you need someone:
- who can help you answer important questions;
- who has experience and resources;
- and who uses your objectives to create a space that supports your purpose, priorities, brand, and vision.
If you are an owner or manager planning or thinking about a move or update, contact me for a free consultation. We will help you breathe easier.
