Financing an Office for a Family Business: How to Manage it Like a Pro
Starting a business is a tremendous challenge in itself, today’s world is unforgiving and any mistake could end up being your last. However, the businesses that do manage to rise above the rest face even greater challenges, the first being – finding an office. While the general rule of thumb is to cut corners wherever possible – that may not necessarily be the case. Like in business, knowing which corners to cut and where to invest will mean the difference between a company’s continued growth and its hindrance.
Create a workable budget
Before even considering anything even remotely close to looking for offices, make a budget. It is imperative to know exactly how much you can spend, down to the dime. Creating a solid budget and keeping everyone involved will ensure that you do not bury yourself down the line, making promises you cannot keep. It may sting knowing exactly how much money you’re able to allocate but it will give you a realistic idea of what to expect and look for. This will ground any stray thoughts and keep all involved parties’ heads in the game.
Consider a co-working space
One of the aforementioned corners worth cutting is the actual acquisition of office space. Co-working spaces essentially function like a public library, providing everyone with the basics to kick their business off. This greatly cuts down on costs while planting you dead-center into a community of like-minded individuals undergoing the same challenges as you. This provides a healthy environment to exchange ideas and face different problems together. Besides helping you bide your time until you have what’s needed to set off on your own, it provides something even more valuable – diverse business contacts.
Look up local business incubators
Expanding on the idea above, another options for fledgling companies is a so-called business incubator. This is a specialized organization that provides young businesses with cheap office space, equipment, management training, furniture and much, much more. Think of it as an office with a safety net, ready to catch you should you trip up and get you back on your feet. With seasoned experts working around the clock to make sure your company doesn’t tank, there really is no reason why this shouldn’t be considered an option. Just be sure to bring your A-game, the competition is stiff.
Sharing is caring
If these ideas are enticing but sound way too crowded for your idea of an office space, there is the option of sharing an office with just another party. This can effectively reduce your costs to a fraction of what they would be, provided you play your cards right. When still gaining a foothold, renting an office space with one or even two other businesses can be an immense quality of life improvement if you can get your schedules in order. Keeping out of each other’s hair is paramount in this setup, all and any tension must be dealt with right away to keep the gears turning.
Invest where it matters
Now, when actually procuring the office itself, never save money on agents, security and hygiene. If none of the above suit your needs and you opt for an agent, take extra care that he is experienced and that he’d secured good office space for someone you personally know. The same goes for security and maintenance – a business is an investment, as such it needs to be secure on all fronts. Investing in professional security measures or maintenance like Cleanworks might carry a heftier upfront cost, but prevents any hitches down the line, which could ultimately tank the entire thing. The last thing anyone needs is for his/her business to be considered a security risk or a health hazard.
As one might have noticed, there is a plethora of pitfalls when moving into office space, the major one being – costs. Quite simply, office space is expensive, and with little to no income, fledgling companies have an almost impossible task ahead of them. Luckily, there are the options mentioned above that allow small family businesses the opportunity to grow and leave the proverbial nest when they’re ready. This leaves a hefty sum leftover for funneling finances into the areas that will make a difference not only tomorrow, but even years from now.