Consider These 5 Points When Looking at Physical Space for Your Startup

As you conceptualize your company, you need to think critically about the physical space that it will occupy. While not all companies need a physical space, having one can give an organization a clear competitive edge. Before you begin looking for a space, you should think critically about what you must have and what you would like to have. Likewise, you should have a sense of any points of contention as well as your budget.

Figuring out these finer points can involve a lot of work, but it will ultimately help you identify the ideal space to let your company grow. If you choose the wrong space, it could ultimately sink your company, so it is a very important decision that should not be taken lightly. Some other factors to consider include the following:

1. Space

Think about how much space you need. Consider your plans for the future and make sure you will not end up outgrowing the space too quickly. If you plan to hire a couple dozen more employees in the next two years, for example, you should plan for that now.

Alongside the amount of space, figure out the type of space you will need. Sometimes a storefront is important, sometimes it’s not. Do you need warehouse space for storage or a private office that will help you handle administrative tasks in peace? Having an idea of what the space should look like before you start shopping around can help you in your search for the perfect place.

The space could also include the lot itself. For instance, do you have room to expand the physical building if you want to do that down the line?

2. Location

Perhaps the most important thing to consider when it comes to shopping for a physical space is the location. The physical location is extremely important in determining whether a company is successful. Some companies do better in areas with a lot of foot traffic, whereas others do best in more secluded locations.

You should also think about proximity to suppliers and manufacturers, as you may be able to reduce costs if you choose the right location. Of course, paying attention to location also means thinking about the competition. Do not open a business near established businesses in your line of work unless you are extremely confident in your competitive edge. Even then, you should consider other locations.

3. Curb appeal

While you will be able to change how your physical space looks to some degree, some things are immutable. Consider these factors carefully as you look for a space. For example, a store in a strip mall sends a much different message than a standalone building. Think about the reputation of the neighborhood and who usually shops there.

Attracting shoppers far from their usual routes is a difficult prospect. Instead, you should try to find a place along those routes. Also, you should always ask about the history of a space. If the location has frequently changed businesses, that is a red flag. Figure out why businesses there keep failing.

4. Regulations

Unfortunately, regulations often play an important role in your search for a physical space for your company. Ask about any zoning rules that may get in the way of future plans or that could dictate how you run your business. Figuring out these rules and regulations beforehand is critical for having a good experience. Otherwise, you may face a string of headaches down the line.

You should also pay attention to any political disputes that are currently happening or that have happened in the past and could be reignited. If the zoning rules change once you have the company established, that could become a major problem — potentially resulting in you vacating the building. Regulations also include the lease itself. Does the property owner have a lot of rules about the customizations you can make? That could hinder your success.

5. Budget

Figuring out the budget for a physical space can be tricky. You must think beyond just rent. For the most part, you will need to invest a lot of money into the space to get it looking and functioning as you desire.

Also, consider the infrastructure of the building. Some spaces may not have the infrastructure you need to support your business, and these types of upgrades can be very expensive. Plus, ordinances, not to mention the property owner, may prohibit some of the upgrades. If the infrastructure is not adequate, you may want to look elsewhere. Other points to consider are the monthly bills associated with the space. How much do utilities run on average? Always think about how these additional costs will add up at the end of the month.