Leasing commercial space for a growing business is all about forward thinking.
You might have detailed your business plan, growth strategy and profit projections, but chances are you may not have considered planning your business expansion. However, a little planning is vital to ensure you can continue to build your brand in the years to come.
If your business is growing in size, not just in profit, be sure to have sufficient floor area space to accommodate your increasing plant and equipment, as well as stock.
Lease the space next door
One way of expanding your business without losing your existing customers is to lease a neighbouring commercial space. That way, you don’t need to break your existing lease or wait for it to expire before making your next big move.
Create your own network
If you’re looking to grow or franchise your business across multiple locations, research your expansion strategy wisely.
Look for new growth suburbs that offer effective public transport options, local shopping hubs and growing residential areas where you’ll be able to find new customers and they’ll be able to find you.
Have an option to renew
By setting up your initial lease agreement with an option to renew for say, three years, you can plan for the future without compromising rent, legal costs and other out-of-pocket expenses.
Find the right agent
Take the time to find the right commercial real estate agent that you not only feel comfortable with, but who has the requisite knowledge and experience to source the right property for you. Agents with local-area experience are invaluable as they can provide insights about popular suburbs, roads, business parks, turnover, upcoming developments and existing clientele.
Cost versus benefits
Consider not only the cost of leasing a commercial premises, but also the vacancy rates and turnover in the building and the surrounding businesses.
Weigh these up against the benefits, such as your location, expected profits, customer-friendly amenities such as a car park or toilets and any incentives offered by the lessor.
By examining these factors and doing a little forward planning, you can make sure your business continues to grow in the years to come.
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