The dream of every startup is to grow fast but this comes with its own set of challenges, the main one being working space. Working from home soon becomes inconvenient and it is hard to build a company culture in this kind of environment. When you finally decide to make the big move and rent an office, there are many things to consider. Remember your office is more than working space, as it also gives the first impression of your business.
This article highlights some of the crucial factors every startup must consider when renting out their first office space.
Start With a Strict Budget
While your startup has shown signs of growth, you do not want to start spending recklessly. Caution is important when investing in long-term projects such as rentals. You need to look at your financial status including all projected revenues and expenses before committing finances to the office rental.
Remember there are upfront costs involved in renting space and consider all these when setting aside a budget. List all expected costs to determine the amount your business, can comfortably pay for an office every month. Upfront costs, in this case, will include attorney fees, furniture, parking, telephone/internet, tenant improvements, and commercial liability insurance among other things.
Evaluate Your Plan for Growth
Before you make the big jump into the market, take time to evaluate your projected growth trajectory. Take a look at the last one year of your company’s growth and use this to look into the future. You should not rent an office, you will outgrow in a few months. Look for space that can accommodate your growing business over some time.
Let Your Needs/Clients’ Needs Guide You
The worst thing a startup can do is to rent an office that is incompatible with its needs. Most real estate contracts are long-term and you might have to stick with the wrong office for months. To avoid this, sit down with your team and brainstorm on what you need in an office before going to the market.
For instance, do you need an office with a boardroom attached, parking area for you, and clients among other things? To determine how much space you need, consider maximum occupancy rates, space shapes, collaborative office furniture, and the anticipated number of future hires.
Consider Location and Amenities
One reason for moving from your home office is to ease client interactions and you should thus, rent an office space in an accessible place. Look for an office block that is easy to locate and has a professional demeanor to give the best first impression for your business. Look for amenities such as kitchens, storage, conference rooms, after-hours security, and free parking among others.
Learn the Common Lease Types
There are multiple lease types in real estate and it is advisable to learn about each before starting your search for office space in Delhi/Noida/Gurgaon. They include full service/gross, triple net ("NNN") leases, modified gross lease, and percentage lease. Make sure you understand all their cost implications before opting for any of these lease options.
Renting office space is a milestone for your startup and with these tips, you can now do it right to get the perfect working space and give your company the right working space and subsequent exposure you deserve.