When you start a new business, there are a lot of things to think about. Before you can really get your business off the ground, you need to have a good office space.
From rental agreements to internet connections, you’ll need to think about and pay for the office to operate. This can quickly add up, and you may be wondering how you can possibly save money.
Being unable to cover office expenses could be the death of your new startup. You want to keep your costs low and productivity high.
Read below about how to make your startup office space effective and economical all at once.
1. Consider a Non-Traditional Startup Office Space
When you’re starting out, you may not need a large office space just yet. If you’re resourceful and creative, you can turn almost any space into an office.
Take a look at what you have. Do you have a house with a backyard? Could you build a small shed to turn into office space?
You can also look for spaces non-traditionally used for business. Don’t shop exclusively for office spaces.
You do need to be careful of using an apartment or similar space as a startup office. Such activities could be in violation of the terms of the lease.
If you do use residential space as an office, you’ll have special tax considerations.
2. Limit Your In-House Team
One of the biggest ways you can save money is to reduce your need for office space. Of course, you need a physical presence to operate as a business in the United States.
However, you may not need every employee in the office every day of the week. You can use the benefits of technology to your advantage and allow your employees to work from home.
This has benefits for both your business and your employees. You can save money on office space and equipment. At the same time, you allow employees to save money on childcare and travel.
When you have a remote workforce, you’ll need only consider the cost of software and network security. These are aspects of business you’d need to consider whether you have a large physical presence or not.
3. Co-Working and Shared Office Space
This is a new development in the world of business. Shared office spaces are popping up in major cities across the globe.
Instead of a signing a long-term lease agreement, you’ll pay a monthly membership fee. The spaces allow startup entrepreneurs to collaborate in a temporary office environment.
These spaces often go beyond offering space. Some companies like BE Offices give you access to conference rooms, internet access, personalized telephone answering, and more. Some shared office spaces allow your business to receive mail.
This allows you to have a physical presence in an increasingly technological world.
4. Negotiate a Deal
If you’re in business, you need to learn how to negotiate. Landlords may keep their asking prices high, but you may be able to negotiate a deal.
There are a few ways to make sure you can strike a deal with a potential landlord.
First, you’ll need to keep a straight face. This means you can’t let the landlord know you don’t have any other options left. You should make sure you have options, but you could fake it until you make it.
Second, think about the terms. While the rental price of office space is important, the terms of the lease may be more important. Think into the future about your company’s particular needs.
You may soon realize you need more or less office space with different accommodations.
Last, protect yourself against exit fees. You need to protect yourself from an event when things go south.
5. Minimize Furniture and Accessories
You want your office to be a comfortable working environment. However, some luxuries can quickly add up to cost more than necessary.
For example, you need desks, but you don’t need fancy desks made of solid oak. You don’t need a common area complete with couches, ottomans, and a television.
Instead, stick to the basics and limit extraneous office expenses. You need to think about the functionality of your office space before fashion.
Going a minimalist route doesn’t have to be so bad. You can draw inspiration from modern and contemporary design to create a sleek and economical startup office space.
6. Profit From Misfortune
Current economic and business climates force some business to downsize. This may sound like a bad thing, but it can be great for you and your startup. Downsizing and rightsizing leads to empty office spaces.
Some businesses will sublease office spaces at discounted prices. If you shop around, you may be able to find good office space at a low rate.
For example, a business may need to downsize but still have two years left on the lease. Instead of paying cancellation penalties, the business may choose to look for a subletter.
7. Get Creative
The important thing to remember about choosing a startup office space is creativity. Take the initiative to think about how you can use the money you have to create an effective work environment.
Make lists of all the things you need versus the things you can sacrifice. Good financial planning is essential to your business’s survival.
Not every business is the same. While one business can survive without high-end security software, another may need to protect highly sensitive client information.
You’ll need to think hard about the type of business you operate and what you need.
Have Fun and Save Money
Starting a new business can be an exciting adventure. However, dealing with finances can be stressful. You need a good office space, but you may be able to cut down some of the costs.
You can get creative with your startup office space. Sit down and figure out what you need and what you don’t. Consider some of the above tips for saving money on your new office space.
Do you want to learn more about tackling your business challenges? Check out our section on business endeavors.