Thinking of taking your startup business to the next level? Think commercial office space! Sure, that’s a massive unnecessary expense, right? Not when you consider the benefits to your reputation and the increase in potential revenue, it isn’t. Read the article for more information.
Here, we dive into the pros and cons of investing in commercial office space for your startup and cover everything from income potential to building better business relationships and networking. Why not give your business the base it deserves and establish your brand as an industry name.
Income Potential
Although it seems like a larger upfront investment for your fledgling startup business, buying commercial property or office space can boost your income potential. How is this possible? Firstly, It gives you a space that your can tailor to your business and advertise on the outside.
This can bring in additional revenue that can offset the costs of the rent and maintenance. But there’s more. Owning a commercial property changes the optics of your business, making it appear more professional. In turn, this increases the chances of investment and your valuation.
Professional Reputation
Owning a commercial property as well as having your online presence well optimized is the best way to ensure that you get the investment you need to drive the business forward. When investors see that you are established in your niche, it adds confidence and takes away the risk.
If you want your business to be successful long-term, then establish a notable presence in your industry online and offline. A commercial property gives you the opportunity to invite business partners to the office and conduct interviews in a professional environment, ideal for reputation.
Business Relationships
Business relationships are one of the foundations of modern business success. Whether it’s a partnership with a wholesaler, an accountant, a supplier, or even a competitor, the relationships are valuable and worth investing in. However, they take time to cultivate and make them strong.
There are many ways to cultivate successful business relationships – you don’t need commercial premises, but it helps! When you have a space to invite your partner for special events, occasions, and conferences, you create an environment for partnerships to develop.
Easy Maintenance
Something that might put a startup business off investing in brick and mortar premises in the annual maintenance costs. Like the rent, the annual maintenance cuts into the overall revenue and reduces the profitability of the business. But remember, these costs can be offset by profits.
Still, a commercial property will require some maintenance, such as cleaning services, boiler service plan, and energy expenses. But as with any property, you can reduce costs and save money where possible; one example is using an affordable commercial boiler repair service.
Bigger Business Valuations
The higher the valuation of your business, the more competitive you can be with your investment negotiations. For instance, if you go to meet a venture capitalist for investment to launch a new product on the market, you can give less equity away with a higher valuation.
If your business has infrastructure like a commercial premise, it shows you are established. It carries less risk for an investor. This is slightly different from a startup with no infrastructure offering the same deal. The chances of it succeeding are bigger with an established business.
Better Productivity
When it comes to productivity, there are two schools of thought. One school suggests that employees work best on their own terms, organizing their time and workload around their personalities and personal lives. Others disagree, they think office space is a better idea.
In many ways, it depends on your philosophical outlook; it also depends on the nature of your business and the industry you operate in. However, there’s no doubt that most people work better when they are in a working environment, whether it’s a home office or office space.
Final Thoughts
The question of whether you should invest in office space is certain to arise at some point in the business meetings of your startup company. There are advantages and disadvantages to commercial properties, and the decision you take should be in the best interest of your profits. Remember that commercial spaces can improve the optics and viability of the business.
While it might seem like a business expense initially, you have to think about commercial space as a business investment that improves the reputation and viability of your business, especially when it comes to investors. The good news is office space is more affordable than you think.