| |
|
Eventually it happens to most successful business
owners: Your office feels cramped. Maybe your productivity is
waning because your employees keep getting in each other's
way. If that's the case, it may be time to start hunting for a
larger space.
The need for a bigger office or
storefront is a great problem to have: It means your company
is growing. But upgrading to a bigger space presents a host of
issues for small-business owners. Here are some important
factors to think about:
Where Is My Business
Headed?
Think about your company's potential growth
before you start investigating new locations. For example, if
you intend to double your staff soon you'll need significantly
more space than you will if you want to grow your business at
a more moderate pace. Either way, remember that most space is
leased for at least five years. Don't lease a space that you
will outgrow in two years.
Figure out how big an
organization you want to manage. Then consider the resources
it will take to get you there and the space you'll need.
Include the following factors in your decision-making
process:
| |
► |
Employees
|
| |
► |
Desks or offices
|
| |
► |
Factory or
production space |
| |
► |
Computers,
scanners, copiers and other major office equipment
|
| |
► |
Storage space for
inventory or files |
| |
► |
Office layout
|
How Much Is
Enough?
The following tips give you a good idea of
how to calculate your space needs:
| ● |
Call your
industry's trade association. They should be able to
calculate average annual sales per square foot. For
example, if the yearly revenue goal for your business is
$200,000 and your trade group estimates an average of
$150 of sales per square foot, you'll need between 1,300
and 1,350 square feet of space ($200,000 divided by
$150). Remember that if you plan on growing your
business rapidly, you'll probably need a larger space
than this calculation calls for.
|
| ● |
Use your head
count to calculate your space needs. Some experts
estimate that you need 150 to 200 square feet per
employee, plus an additional 15 percent for traffic
flow. You also may need extra space if you intend to
hold a large amount of inventory or if your business
requires a lot of open space in your
facility.
|
| ● |
Make sure your
facility's size meets the needs of customers and
potential customers. For example, a business with
executive clients who visit frequently may need
designated spaces for a reception area and several
conference and meeting rooms as well as a vacant office
for the visitors to work.
|
Should You Lease or Buy Space?
If
you own a growing business, you probably want to lease a
new, larger space rather than buy it. There are two
reasons why:
|
| ● |
Your business
probably will outgrow your current space, and it's a lot
easier to move if you lease. |
| ● |
Leasing means you
don't have to deal with maintenance and upkeep of the
facility.
|
That said, you may consider buying a space for
these reasons:
|
| ● |
The location is
perfect. If you find a high-traffic area for your retail
operation, for example, you may want to ensure that the
place is yours for as long as you want it. |
| ● |
You want control
over the facility. This is especially important if you
want to renovate or add on to the space.
|
|
