Choosing the right office space when a business is just starting out can be a daunting task. Especially when everything is uncertain, and you are really tight on the budget. Choosing the right location for the base of your business operations is very important. It will have a big impact on the performance of your employees and the profitability of your business.
In this ever-changing economic landscape, you cannot afford to invest large sums of money in a workplace that is not the right choice for your start-up. Business centers provide a lot of choices in terms of the types of office spaces they rent out. We are going to look at five types of office spaces that you can choose from for your start-up. Four of these office types are provided by business centers.
Types of office spaces
Here are the five types of office spaces that are recommended for start-ups:
Permanent office space
In the current situation, owning permanent office space is the riskiest. Even then, businesses that have a clear idea of what they need can still opt for a permanent office space. Permanent office spaces are beneficial in the long run. They provide a solid base for your operations. And you have complete control over the space that you own. In most of the other types of office, you have limited control to customize your space.
Leased office space
Leased office spaces are the most common type of office. However, that does not mean they are the best for start-ups. They are less expensive upfront than permanent office spaces. However, that does not mean they are cheap. They are still a big investment for businesses that are just getting started. They come with fewer responsibilities because they are still owned by the business centers you will lease them from.
Coworking spaces are the most popular type of office space nowadays. They are affordable, have a good ambiance, and provide a lot of perks. They were popular among freelancers, entrepreneurs, and start-ups before, and now even settled businesses are opting for them. This is because they are versatile and minimize losses caused by economic turmoil. However, since you have to share the space with others, complete privacy can be an issue if your business needs it.
Virtual office space
Virtual office spaces are popular among businesses that can work from home or remotely. Even if you work remotely, you will need a business address for several reasons. It is always important to seem professional in the business world, and virtual office spaces offer just that to businesses that cannot afford other office spaces. They also provide receptionists and meeting rooms to make your business even more legit.
Residential office space
As start-ups often lag the necessary fund, most of them start from someone’s basement or garage. These start-ups usually move out of the residential spaces after a few months into their life, or never at all. If you are looking to seem professional and attract investors, then residential offices are not the best choice. However, nothing beats the cost of residential office spaces because they are free.
Tips for choosing the best office space for your start-up
Now that you have an idea about the types of office spaces you can choose from. How do you go about settling for one that is best for you? Here are a few tips to help you make this decision:
1.) Consider the nature of your business
A tech-based start-up will have different needs than a start-up in the transportation sector. For example, an IT company can prioritize remote working and make do with a virtual office. However, a delivery business will need a solid base for its operations. You should consider which of these types of offices will be suitable for your start-up. Consider the number of employees you will need to accommodate. Take the machinery or equipment you need in your office into account as well. Check with the tenants if they will allow the required equipment on the premises or not.
2.) Consider the location of the office space
The location of your start-up will make or break your business in certain sectors. You need to consider two things when choosing a location for your business. Office space in a reputed business center located in a reputed business district will always win more clients. You also need to keep your employees in mind when choosing the location. You need to pick a space that is within the vicinity of a good public transport system.
3.) Consider your budget
Consider the office space you choose as an investment. If you do not get value from this investment, then it is not worth it. Office spaces that require less upfront payment may seem preferable most of the time, but if you think long-term then leasing or buying is preferable. However, for start-ups, the cheaper option is almost always better. This is because you will be better off spending the money to perfect your product or service.
4.) Consider the future of your business
During these fickle times, you may need to upsize or downsize your business at any moment. Consider these risks when moving into a permanent space. If you have to let hire more hands after already making a long-term commitment, then there will be cluttering. Or worse, if you have to let some employees go, then you will be left with empty office space. An empty office is an expense that is not providing any return.
5.) Read the contract carefully
Last but not the least, do not sign the contract without going through it several times carefully. After finding the perfect office that meets all your needs and is also within your budget, do not rush the contract. There may be hidden charges and terms that will complicate things after a month. Double-check the lease or rent period as well.
The bottom line is that do not rush into a new place without taking all the things we discussed so far into consideration. Take your time and evaluate all your options carefully. Even if an option seems favorable, check the other options as well.