Starting a small business is neither easy nor simple. There is no foolproof step-by-step guide to successfully starting a business because every industry is different. Along with every business owner’s vision for their new venture! However, one of the questions that almost all business owners will ask themselves at some point is… “Should I move the business into a dedicated commercial space?”
Small Business Space
The good part of this question is that it shows your business is expanding and succeeding. This is a feat in itself considering 8 out of 10 entrepreneurs fail within the first 18 months. However, just because your business is doing well at one time, it’s still important to think through the decision. Expanding into a workshop or purchasing storage space without a well thought out plan could be what breaks your business, so always consider your options first.
Saying this, if you do decide to expand your business and move into a workshop or purchase some industrial storage space, there are a few things to consider before selecting your desired property.
Rent or Buy?
The first question you should always consider is are you going to rent your new space, or purchase it? Renting is the usual option for most small business owners because it offers flexibility and low upfront costs. We rented an office within a business centre for a couple of years, and it was a great option for us then. When renting commercial space, leases usually come with clauses that allow you to end the contract early, if you want to cease using the space.
For a small or new business, this is essential. Even if you’re experiencing rapid growth and success, it’s impossible to be confident that you will remain in a profitable position in the near future. Furthermore, most small businesses don’t have lots of spare income that can help them during drought periods. In this situation, being stuck paying for commercial space can condemn the business. This is why flexibility is so important.
On the flip side, purchasing your small business’ commercial space usually comes with lots of freedom to do as you please. Though it also has a fair number of disadvantages. Along with requiring a lot more upfront capital than most small or new businesses have access to, buying some storage space or a new workshop for your company forces you to stick with your ownership until you can sell the property off.
When experiencing a difficult period for your business, you might want to leave your commercial property because it is no longer affordable. If you own the space, you must sell it before you can leave and stop paying the mortgage. The time taken to make the sale can often be the difference between your business surviving and failing.
I’ve only touched on the advantages and disadvantages of each option, today. So if you want to learn more about purchasing commercial property click here. Or if you’re interested in discovering more on renting, you can click here instead.
After deciding whether to buy or rent, the accessibility of the property should be essential in your thought process. Consider who will be spending time in your workshop or storage space. Will you have staff or clients visiting? Then you need to make sure that the business space is easy to get to and has suitable parking services nearby. It’s these fine details that can improve employee satisfaction by making the commute to work much easier.
Finally, one of the most important points to keep in mind is any specialist facilities that you need for your business to operate. A great example of this is three-phase electricity. This is a requirement for certain heavy machinery to work, but isn’t available on all business properties. Make sure to write a list of specific needs for your small business that you can refer back to during your property search.
Overall, the most important thing to keep in mind is research. A small business is a fragile thing, so as a business owner you must plan every step in advance! With any luck, this will help you make the best decision for your business’ situation. Let me know if you have any tips of your own.