As your business begins to grow, choosing the right commercial space can present a host of problems – problems that are often greatly exaggerated when a business owner believes that the most important factor is the cost of the space. Yes, you want to find a space that is affordable. But the space also has to be the right space—the space that will allow your business to thrive. A space that works well will have a direct, positive impact on your employees, customers, and the overall bottom line. A space that does not work well can have just the opposite effect. In the end, finding a space that works well can take time, but the end result is well worth the effort. In the following pages, we will go over several things to consider when looking for a space and how to approach choosing the space for your growing business.
When a business starts out, they typically don’t have all of the funds available to buy or rent a large amount of commercial space. But they also want to make sure that they have enough room to grow as the company progresses. In order to find a good amount of space without overspending, the business needs to carefully select the type of commercial space for business to buy or rent and plan out the spaces within the building for optimum use.
The first step to selecting the right commercial space for your business is to plan. There are several aspects to consider when planning the Commercial space for business. How you plan the space will help to decide how you will use the space, how flexible the space will need to be, and what additional costs there will be that may not be immediately apparent.
1. Start With Your Company’s Operational Needs First
Many business owners start their search for a new space by trying to figure out how much space they need. While the amount of space you need is an important part of finding the right space, it should not be the only factor that you consider when searching for a new space. A more important starting point is to figure out how your business actually functions on a day-to-day basis.
A retail business would typically require a retail open area to serve customers as well as storage rooms, offices, display areas, and parking. A warehouse requires loading, high ceilings, wide openings, and efficient inventory flow. A restaurant or brewery would require production space as well as seating for dining and drinking, storage for supplies, good ventilation, and customer-friendly design. A service-based business (e.g., auto repair, medical/dental, etc.) will typically require a combination of an office, a workshop, storage for vehicles and equipment, and client-facing space to meet with patients/clients.
The right facility is one where the processes and procedures of your company reduce to their basic elements and allow your employees to succeed at their jobs with as little friction as possible. The ability of your company to service its clients must be made as obvious as possible to your customers. The same can be said for the flow of product through a warehouse. Inventory must be stored in a manner that makes it easy to retrieve as needed. The areas in your company’s facility where your employees work must allow for the safe storage and deployment of all equipment. Delivery times and schedules should allow for product to arrive at your facility without interfering with the time that is spent serving your customers.
2. Compare Construction and Facility Options Early
Next, a business owner must compare the options for securing or creating a commercial space. These can include leasing an existing building and renovating it, or building a new building from scratch. A company with specific needs for a layout, for storage, for equipment, or for future expansion may find that building a new Commercial space for business is the smartest choice in the long run, even if it costs more initially.
Construction costs and the level of customization desired are two of the factors that owners should compare when deciding between the different types of commercial construction options. In addition, owners must also take into account the amount of time they have before they need to occupy the building and the expected lifespan of the building.
There are several different types of commercial building designs and structures that can be used for different types of businesses and for commercial facilities in different locations. Understanding the different types of commercial building construction can help a Commercial space for business owner to make an informed decision about which building design and structure will best suit the needs of the business and the commercial facility. For example, retail businesses, warehouses, showrooms, storage facilities, and mixed-use commercial buildings can all be made of traditional commercial building materials or of steel or of post-frame building materials.
Do not make the mistake of determining whether a building is affordable based solely on its initial price tag. While it is tempting to select a building that has the lowest up-front costs, it must be realized that the cheapest option may ultimately turn out to be the most expensive. Also, a highly complex building may require a significant amount of the company’s capital to complete construction. Once complete, the building may not have the desired operational characteristics, and the funds that were used for the building could have been put to better use, such as hiring more staff, purchasing equipment, advertising, or purchasing additional inventory to support retail sales.
3. Plan for Growth Without Overbuilding
A building that is too small can become a financial drain as a business expands, while a building that is too large can be a financial burden due to increased maintenance, extra space that does not bring in revenue, and debt that was not necessary.
When looking for a business space, it is common to look at the square footage of other buildings. However, this does not guarantee that your business will fit well in the new space. Look at your business’ daily operations and draw out a floor plan of how the space will be used. Map out the areas where products will be stored, where equipment will be, and where employees will work. Don’t forget to include peak hours and times when there will be the most traffic through the space. The end result of your drawing will allow you to see if your business will fit well in the space for sale or for lease and help to give you an idea of the pros and cons of the new location.
Commercial space for business wants to space for grow in, but growth planning is tricky. If you build a space that’s too small, it can cost you in lost efficiency. If you build a space that’s too big, it can cost you in wasted money and maintenance. A better approach to growth planning is to map out your current needs and then determine how you can make your space more flexible to meet future needs. This can be as simple as creating an open floor plan with adaptable storage or as complex as planning out a number of different office configurations that can be used as needed. The key is to plan for growth in a practical and thoughtful way, rather than trying to guess at what your business will look like in the future.
A small manufacturer will require space for their initial production lines but have the ability to add more production lines as the business grows. A retailer may only require a small showroom but will need to have backstock storage to handle their online sales. A service company will require space for their service vehicles but have the ability to add office space in the future.
Growth planning should focus on practical flexibility, not guesswork.
4. Understand the Hidden Costs
The price of commercial space for business is rarely limited to rent, purchase cost, or construction. Many expenses appear later, and overlooking them can create budget pressure.
In addition to the price of the facility, there are typically many other site preparation, construction, and renovation costs that businesses do not expect to pay. These include connection to water, sewage, and utilities; required permits; inspections by various government bodies; site drainage; on-site parking; signs; outside and inside lighting; heating and air conditioning; insulation; security systems; landscaping; and any physical disability access requirements. In some cases, during the renovation of an existing facility, hidden problems may be uncovered, including problems with the electrical system, plumbing, roof, and structural elements of the building.
5. Involve Experts Before Final Decisions
In making decisions about Commercial space for business, an owner must remember that there are many more factors than his or her own business preferences to consider when selecting a commercial facility. There are zoning restrictions, building codes, lending terms and conditions, access to necessary utilities, traffic patterns, and environmental conditions, to name a few. Further, a business owner must be aware of all of the local, state, and federal permitting required for construction and prior to opening for business. All of these elements must be taken into account before deciding on the best option for your business.
Ultimately, the right Commercial space for business in your company is one that allows you to continue to run your business efficiently while also having the ability to protect your cash flow. Also, don’t forget that the best commercial space for any company is one that will allow for adaptation to future situations. By following these steps for choosing the best commercial space for your company, you will be able to find the perfect commercial space for business without spending too much money on a space that doesn’t meet your needs.
