4 Tips to Help You Pick the Perfect Office Space for Your Small Business  

Entrepreneurs are brave. They’re determined. They’re risk-takers. They have a vision and don’t want to slow down until they see that vision turned into a reality. They also know that having a place to call their own is part of the dream. Getting office space is a clear, visible step that says to the outside world, “Look! I’m a real business owner!” To make it to this exciting milestone and beyond, though, some preparation is involved. Getting a business location is not as simple as finding and claiming an empty building. It takes planning, evaluating, consulting, and, when the time is right, acting.

Fortunately, entrepreneurial types are not afraid of the challenge. Smart entrepreneurs always consider these factors before renting or buying office space.

1. Analyze Finances
Scouting for office space can be overwhelming since it sometimes feels like big businesses are the only ones that can afford to expand without breaking the bank. In reality, though, the National Association of Realtors reports that 85 percent of commercial real estate transactions are made by small business owners and cost less than $2 million.

This statistic is encouraging, but the business owner must determine whether renting or buying an office space is the right move for the company. As thrilling as it would be to own an office, the ultimate goal is to stay in business. Before scoping out potential offices, the smart business owner should review the business plan, the budget and the financial reports. A second opinion is always a good idea, so most consult a financial advisor before making a move. In some cases it may be wise to keep the office at home for now. It’s better to keep the operation running than to let over-eagerness bankrupt the company.

2. Try Out a Business Roommate
When young people leave their parents’ home — whether for college or some other adventure — they usually realize pretty quickly that living alone isn’t always plausible without a good-paying, full-time job, so, more than likely, they find a roommate while working toward complete financial independence. Getting office space can be the same way. Just as with living situations, business owners have the option of stair-stepping from operating solely from home to having full ownership of commercial property. If, after looking at the budget in-depth, renting or buying office space isn’t quite feasible, the smart business owner should consider sharing an office space with another business.

Office sharing can take several forms — for instance, subletting, alternating office hours or claiming one portion of the rented space and allowing the other business owner to use the other part. Both parties will enjoy the benefits of sharing the financial burden along with the space.

3. Find a Place That Fits the Financial, Customer, and Employee Needs of the Business
Even though it’s tempting to go out and look for locations, a business owner must avoid falling in love with a place that’s out of a reasonable price range or inconsistent with the client and employee needs of the business. That’s why a smart business owner examines the budget and consider the need for a business roommate before getting too far into the real estate search.

Smart owners consider these factors that can be discovered through dedicated research and preplanning. Each could instantly change a seemingly great location into an impractical one.

• Location. A building may look gorgeous, but is it in an approachable area for customers? Reasonably commutable for employees? Too close to competing businesses? Close to suppliers and/or other business partners?
• Price. Is this office within the budget? Does it have the equipment needed, or will other expenditures be necessary? Are there any hidden costs on the property?
• Community Perspective. Maybe the building looks great and the price is right, but does this community want the business in their neighborhood? How have previous businesses done in this area? Is the product or service desirable to this community?

Realtors, financial advisors, and business centers all serve a purpose. A good businessperson uses resources wisely and does not try to go it alone.

4. Consider Applying for Grants
Applying for business grants is always a good idea. The world of business offers grants of all kinds to entrepreneurs, including grants for specific fields, grants for specific projects and even grants explicitly for women business owners.

Businesses — especially small businesses — can always use more funding. Business grants are an entrepreneur’s best friend because, unlike loans, grants don’t have to be repaid. However, when applying for grants, make sure to apply for the right ones. Grantors don’t want to give away money to just anyone for any project. They want to sponsor projects and people they believe in.

To ensure applying for the right grants and appealing to the grantors in the right ways, consult a business advisor before acting. If all goes well, the business may have a little extra help getting that first office space debt free.

Get Ready for Next Steps

An entrepreneur (or entrepreneur-to-be) should have a vision for the business. When an office space becomes a part of that vision, it should be approached just as any other business-related challenge. Plan ahead, stay flexible, maintain a go-getter mentality, face obstacles as they come, and always remember to use resources.