Not every company will need office space in the first year of starting. However, once you have the kinks and culture worked out and are hiring employees, you’re going to need a real base of operations. Here are just a few benefits that rented office space offers for companies that are still working to rake in the customers.
Cheaper Than Buying
It can be difficult for a new company to break even. However, you will be able to minimize your financial burden finding an office space for rent. as opposed to buying the real estate yourself. While renting, the landlord is the one responsible for building maintenance and grounds upkeep. That leaves you free to focus on marketing and actual business expenses, with only minor monthly payments to cover the rent of the real estate.
Stay Flexible
You will have to sign a rental lease before you move into your office. Rental leases are typically flexible. If space works for you, then you can renew the lease at the end of your term or move elsewhere if the place isn’t working the way you’d like. This means that you can grow to larger and more comfortable offices as your company revenue grows without having to worry about selling off the property you started on.
Avoid Major Loans
Renting an office requires only monthly payments and a small security deposit while buying commercial real estate requires a massive downpayment on a business loan. This means that your business, in its most financially vulnerable years, will be working while in debt for that loan. Small companies shouldn’t be taking out major loans, especially when they can’t guarantee that they’ll be in business long enough to pay it off again. It is better to start off with a small, rented office than to put the financial burden of buying real estate on your business.
An Appearance of Permanence
Many people who do not have an office space either run their business from a home office and/or coordinate with their employees and customers online only. Unfortunately, this gives off the appearance that your company isn’t going to be around long and even suggests you may be a scam company. Showing your permanence as a company to your customers increases their faith in your services and gives customers greater confidence to trust their money with you.
People with small companies should consider renting an office space. This will help you save a lot of money. You will also have a hassle-free experience because you will have everything you need. Because you will save money, you will have access to more working capital. Additionally, you will have a flexible leasing option and maintain a professional image.