Most startup founders get pumped when launching a new business however searching for office space may not be at the top of their list of exciting things to do. Unfortunately renting office space is necessary if your startup wants to grow and hire new employees. There are many things to consider when leasing startup office space such as size, location, amenities, employee needs, timing, etc. however the FIRST question is when should the founder of a new startup company start looking for office space to rent? The simple answer to this is much sooner than you think. There is a lot that goes into renting office space and below are some general guidelines.
- 6-12 months before you need office space start gathering information – Which city do you want to have your office in and in what location? Which class of space makes sense for your startup (class A office, B, or C), What types of amenities do you want or are interested in? Which commercial real estate agents can help you and which have good reputations? Which office buildings or areas of town? What will your growth needs be in 2-5 years? Are you willing to sign a long term lease or as a startup prefer short term office leases?
- 3-6 months start actively searching for office space – Every city is different as some have less vacancy than others. Also some spaces may need more improvements than others which can take more time so you want to make sure you have plenty of time to look at and compare your options.
- Moving into a new office has an impact on company culture – So many startup founders underestimate the impact office space has on their company culture. Moving into a new office gets the team excited and gives them a sense of future. The company is growing so there is momentum and it gives the employees something to look forward to. Communicate the office space search and final space 6-12 months before the move in date and give your employees something to get excited about.
- Have your financials in order 2-4 months before you rent office space – Landlords will want to see your financials so make sure you have them in order. You also want to review them to ensure you can afford a new office or larger office. If you can afford to rent office space then go for it, however keep in mind you do have alternatives such as coworking spaces, executive suites, etc if you are not ready. Bottom line just make sure you have your financials in order months before you are ready to lease office space.