The decision of buying or leasing out an office space is even more challenging than starting the business itself. A single wrong turn,from choosing a wrong locality to investing in a space without keeping the future of the company into consideration, can have unamendable repercussions on your business.
Considering the fact that a usual lease period can go from three to five years, it is unquestionable how important it is for entrepreneurs to consider following factors before signing the office space deal.
Type of office
This one factor changes every equation of the things that you need to consider. From co-working space, executive or an office suite to virtual office, there are a number of options available for modern entrepreneurs. It is imperative for you to decide on the arrangement that you wish to enter in, even before worrying about cost, locality and space.
For example, in case of a virtual office, the need of space and locality becomes secondary while a space that is technologically independent takes the driver’s seat. Likewise, in case of an executive office suite, space and locality become more important factors when compared to the amenities’ considerations.
The right locality
The first and foremost thing that comes into mind when looking for an office space in a city is the locality. The area where your office space is located sends out more signals than you can guess. If in a posh locality, it gives the impression of a financially sound company and when in a developing vicinity, the question of growth potential and longevity comes into the mind of the key stakeholders.
When we talk about the locality, the decision should be taken from three perspectives –employees – in terms of commutation, and clients - how accessible it is for them and other stake holders to visit the establishment. If you are blessed with the choice of having an office space in Chennai, for example, the Indian city known for its entrepreneur friendly offerings, the worry of finding the right locality automatically lessens with the planned connectivity and localities growing with an equal pace.
Total cost of the space
The total cost includes both the lump sum amount it took to buy or lease the space and the various costs that comes attached with it. Some of those costs that comes over and above the X amount that goes into buying/ leasing the establishment are –construction cost, moving expense, restoration costs, parking, electricity, food and beverage expenses etc.
Make a list of all those factors along with their subsequent expenses that you will need to have in place before the employees move in to get the actual picture of the cost that you will need to bear.
Room for your company to grow
When looking for an office space it is very important to see whether it has enough space to accommodate your present manpower and the technologies needed to carry on the business or not. Also, see if the space is sufficient tooccupy the demands a growing business has – both in terms of physical and technical additions.
These factors play a major role in considering what image your company is projecting to the key stakeholders. Over the lifetime of the company the signals that both employees and clients get from the locality, the office space, and even the interiors, is what the company starts getting known for in the market.
For an entrepreneur to have a long-term gig, it is important that these factors or questions are answered well in advance.