On a daily basis, there are a number of new businesses that start from the ground up. One of the primary requirements for these companies is access to infrastructure. Now when we think of this word, we assume glass buildings, centralized air conditioners, and excellent facilities. However, we forget that Multi National Companies occupy these places.
Their Infrastructure Budget
Every company has a fixed budget for different activities. When it comes to deciding on an office space, this aspect takes up close to seventy to eighty percent of the budget. They have certain expectations from the property. For every type of company, access to the main road is important. Easy access to different modes of transportation is also important. However, the area they setup their business is decided by the budget. If the budget is not that high, then they will look out for areas that are not considered prime real estate. On the other hand, if the business demands that frequent client visits are a norm, then they will have to splurge on a high-end location.
More on the location aspect
There are areas classified as commercial districts. There are also residential areas with the ground level locations reserved for shops. The cost of the property in both these areas may vary. If the commercial district is located in, the heart of a city the cost will be higher. The same applies to the residential location. However, if it is located in the extremities of the main city, the cost will depreciate accordingly. However since there is no regulation concerning the amount that can be charged, it depends on the whims and fancy of the owner of the place.
Rental or Outright Purchase
This is one of the main questions any business owner has to ask. It actually depends on the cash in hand. If they decide to go for an outright purchase, then they have to factor in the cost of stamp duty and registration. They can choose to go for the rental option to ensure that they save on the in hand cash and use it to further other aspects of their business. However, they have to be ready for the possibility to move to another location once the agreement runs its course. In addition, they will have to accept whatever furniture and facilities are provided to them.
Direct Approach or Middleman Needed
Middle Men or Brokers are very helpful when it comes to short-listing the property. However, this help comes at a price. This cost can be saved by the direct approach. This involves approaching the owner directly and striking the deal. This may involve a greater amount of legwork. Nevertheless, at the end of the day, they will be able to save a huge chunk of change in commissions. They can still opt for the intermediary if they have a lesser amount of time on their hands.
Blank Canvas or Fully Furnished Space
The cost also depends on the fact if there is any furniture as part of the deal. For example- If the rental space comes with furnishing, the per month cost will be on the higher side. On the other hand ,an empty space will cost a lower amount as the person renting it will have to spend on furniture. Hence they need to decide if it makes more economic sense to invest in a furnished property or not. The other point to consider is that an empty space can be personalized as per the needs of the company. On the other hand if the need is for generic furniture, then a fully furnished rental space is ideal.
Choosing a rental space is by no means an easy choice. Each of the above points play an important role in making that choice. The cost factor while being important cannot be overlooked for location choices. At the same time, aspects like furniture and brokerage are also important. This is by no means an easy choice to make. The business owners will have to give up on certain points in order to be able to balance needs, cash in hand and long term sustainability.
The office space will be the location that will help them grow the business further. Hence, they need to make the right choice at the right time.