Project Updates and Community Impact
5 Things to Consider Before Expanding or Upgrading Your Office Space
As developers and property managers we hear from a lot of small, local businesses looking to move into a newer or bigger space for their growing business.
If you’re looking at leaving your current space because your lease term is ending, you’re looking for a better location, or you’d like to upgrade your office, here are five factors to consider to help you be sure you make the right upgrade for your business.
- What is your current square footage?
- How many customers do you currently bring in?
- What’s your current cost for employees and overhead?
- How much are you currently paying for rent?
- Do you have reserves available if you need to front some improvements with cash?
Before looking forward to your new space and the big vision you have for what could be, it’s wise to take a step back first and see where you already are.
As a business owner, you likely have some form of a business plan already in motion. If you don’t, or if you’re finding your original plan needs a bit of an update, this moment of considering a new space is the perfect time to do so.
Knowing where your business stands, the revenue it’s realistically bringing in, and the actual demands on space that you have will prepare you to successfully take the leap into a bigger, newer space – without feeling the crunch of building too much too soon.
When you’re upgrading your space, take gradual steps forward and slowly increase your space. You don’t want to be stuck jumping ahead too far from your current structure and put yourself into a lease or agreement you won’t be able to maintain.
Take some time to review your current income and current expenses at your current location. See how your business is doing and what your rhythm of income and sales will regularly be. Do you have a pretty good margin? Are you adequately staffed? Are you seeing an increase of demand for your services? Which months are your best months and which months do you see things get a bit slow?
You will also want to be prepared for potential upfront costs when moving into a new space. Will you be responsible for any finishes in the building? Will you need extra computers, furniture, or seating rooms with a bigger office? Will you have higher rent and higher utilities? Will you need 60-90 days to build up more clientele to match your new lease rates? Will additional employees be necessary for a bigger space with more clients?
With all these figures in tow, you’ll know exactly where you stand and can work from there to see what a doable next step will be. You can see if you’re truly ready to 2x or 3x your space and you’ll know if you can spring for new construction or if for this first move you should stick with a remodeled space to get a better rate.
Either way, making your game plan in advance will help you be rock solid moving forward into your new space and help you find the perfect fit for your next location.
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Dream Design International, Inc.
18 East Kansas City St., Suite 3
Rapid City, SD 57701