During the infancy of any business comes a difficult question one must ask themself: when should you expand your space to meet rising demands? And this isn’t a trivial question, either. As an up-and-coming entrepreneur knows all too well, money and budgeting is something that can stop growth in its tracks and cause an entire business to come crumbling down. If you’re on the fence about leasing an office space, here’s what to consider.
The Pros of Leasing an Office
To put it simply, working out of an office makes you feel good, but more importantly, it helps you stay on task and focus on actionable items that will move your business forward. With the sudden influx of remote workers operating out of their homes during the pandemic, a large portion of those employees finds the office environment more conducive to productivity and focus.
Think about it: is it easier to make sales calls and perform customer acquisition strategies when you’re seated in your office or when you’re in your pajamas and watching YouTube videos? Hey, we don’t judge; those pajamas are pretty cool!
Moreover, leasing an office space makes you appear more credible and trustworthy to outsiders instead of buying it. In a world where we’re told not to judge a book by its cover, we often choose to do business with people who present themselves in a “professional” light.
And being the entrepreneur rockstar that you are, acquiring new business and clients is essential for personal and professional growth. When you hold meetings, conference calls and presentations inside your office, clients are more likely to return in the future.
The Downsides of Leasing an Office
Realistically, the only downside to leasing an office space or the Coworking Space in Melbourne is when the monthly overhead surpasses your revenue. In a basic analogy, if you’re spending $3,000 per month on rent, utilities, landscaping and so forth, but you’re only bringing in $3,500, you’re setting yourself up for failure. Not only is this unsustainable, but you have no budget remaining for marketing, outreach, hiring new employees or market research.
Similarly, many newfound office tenants find that their rent prices aren’t static and are subject to change at random. Here are some scenarios you may experience that could lead to increased rent coming out of your pocket every month:
- New ownership
- Property upgrades
- Cosmetic changes
- Annual rent increase
Should any of these events occur at the time of your lease, you can expect to pay for it in subsequent months. If your business is in a position where cash flow is hard to come by, this could cause the downfall of your organization.
But there’s good news for business owners who want to lease an office space! If your organization has consistent cash flow every month, and you can set aside 6-months to a year’s worth of rent, you’re golden. If you’re struggling to keep your business afloat and desperately need to expand your workspace, consider shared suites, coworking offices and “pay-as-you-go” leasing options, like this coworking space in Melbourne. This sort of space can work for a mostly remote work type of business that infrequently needs meeting spaces for sales or corporate events.
Shake up the World
In the realm of entrepreneurship, timing is everything, so get out there and make a dent in the universe. By strategically timing when to lease an office for your ever-expanding business, you’re giving yourself the best chance of success in subsequent years.
At the same time, don’t feel like the difference between “making it” and “breaking it” comes down to the type of office you have. Time and time again, we see billion-dollar organizations that started with a hope, dream and minimal space to manifest their products and services. So, what are you waiting for? Let the world witness your greatness. Keep in touch with quintdaily for better informative ideas all day.
