Start-up companies often work out of garages, attics, basements and dorms, but most businesses will eventually outgrow those small spaces. It can be hard to find the right office space while balancing your budget and your goals, and as the founder, you’re responsible for creating a work environment that attracts top talent. Below, you’ll find some tips on choosing the ideal office space.
Coworking offices have become more popular in the last ten years; this arrangement allows smaller businesses to share expenses while retaining a dedicated workspace. For new companies, it allows owners to get out of the cramped home office, and for smaller businesses, it just makes more sense. Here are some of the other advantages of coworking:
- A more energetic work environment
- Ease in collaboration with like-minded people
- Infrastructure is already in place
- Flexible leasing terms
- Higher adaptability
Now, some of the disadvantages:
- Cost rises along with number of employees
- Lack of privacy
- Inability to change/customize your office
Subleasing Office Space
Sometimes, larger companies end up with more office space than they need, and then sublet the extra space to other smaller businesses. Subleasing allows you to rent per room, making expansion much easier. Costs are lower, technical infrastructure is almost always there from the beginning, and you’ll have greater flexibility in expansion and lease length. Of course, you’ll have to deal with other people as you share their space, and you’ll be limited in the changes you can make.
Leasing a Building
As your business begins to grow and you start hiring more people, you will likely need to find a bigger workspace. Finding the right offices can be tricky; it’s expensive and it will undoubtedly take much longer than you would think. You’ll likely be responsible for the installation of tech hardware and for furnishing the space, which drives the cost up even further.
You won’t be as likely to find a lease deal as you would a sublease, and you are likely to be locked into at least a three-year term. There are disadvantages to leasing your offices, but the flexibility you gain more than makes up for them.
When moving into your new offices, expect the unexpected. Deduct 18” from every room measurement you make, and if you’re having construction done, add an extra week to your move-in date in case of delays. If you’re nearing the end of your current lease, start your search early; you don’t want to be evicted before your new offices are ready!
Like many of the business decisions you make, choosing an office space will probably be a matter of price. Don’t make the jump from home office to leasing, subleasing or coworking too quickly, and don’t move more often than necessary. Know the jargon. There are a lot of expenses involved in a relocation, and those costs only grow as your business does.
Make sure you do what is right for you and your business – you need to make sure that you don’t get in over your head – but you have to make sure that your employees are comfortable.