Even with the power of e-commerce, having a physical location for your startup company can make the difference between success and failure. The extra visibility that a physical location provides gives you much-needed exposure that can put you on the fast track to success.
However, the prospect of obtaining commercial property for your building can be quite daunting. To understand how to make this dream a reality, here are some insights into how small startups can afford commercial property for their physical location.
Outline Your Budget
As important as having a physical location is, this change does come with increased costs. You’ll be responsible for insurance, upkeep, and property taxes, plus the initial cost of the land and building. Therefore, before you set out to purchase a commercial property, it’s important to outline a budget to understand what you can afford. This will help keep your expectations realistic as you hunt for the perfect property and ensure that you don’t overspend, which could potentially put your business in danger.
Find an Underdeveloped Area
Due to various factors, some plots of commercial property tend to become more developed than others. If you can find a plot that is underdeveloped, especially for its location, then this lack of activity may help you score a great deal. Before you make a move on this type of commercial property for sale, though, it’s important to do some research into the level of traffic that this land receives.
Consider a Lease
Depending on your business needs, a lease may make sense, at least in the short term, as you establish your physical presence. Since you’re not purchasing the property or building, a lease can offer big savings over purchasing these components outright. If you choose to go this route, it’s crucial to pay close attention to the terms of the lease to ensure you will have some level of flexibility in the years ahead.
If you can’t afford to purchase a space on your own, it may make sense to share a space with another small company to allow you both to have the physical presence you desire. By partnering with a company whose business focus is complementary to your own, you can help both businesses succeed. You may even find that the business you share space with becomes a long-term partner with unbreakable ties. The key is to lay out clear terms for who is responsible for which costs to avoid disputes down the line.
Growing your business to the point that a physical location is a possibility is certainly an exciting time. At the same time, it’s important that, throughout this period of transition, you work to protect and preserve your business without stretching it too thin. Moving at your own pace, instead of the pace of other companies, will be key to staying patient throughout the process.