Your little startup business has grown into a productive small business. It’s now time to get moving into a commercial location where you can have some space to work and house your new employees. Knowing the costs that are associated with this move can help you to financially prepare for it.
One of your biggest expenses when you first move out to a commercial location is the rent. Since you likely won’t be able to pay cash to buy the location, you’ll need to figure out what the average rent for a commercial space of the size you need is. It’s best to talk with a local commercial realtor and/or look at online listings for spaces with your desired square footage.
Most cities will require you to purchase an occupancy permit. This is on top of your business license and is necessary when you move to a commercial space. You should check with your city to figure out the price for an occupancy permit and how often you have to renew it.
At home, you’re in a routine where you regularly clean your home office alongside your house. However, when you get to a commercial location, you’ll need to plan for cleaning. You have two main options. First, you can hire your own in-house janitor to take care of the space. Or, you can hire an experienced commercial cleaning company to do the job. Take pay, health benefits, and costs of cleaning supplies into consideration before making a decision on which route to take.
You’ll need to get your commercial space up and running before operations start. This means having utilities like water, gas, trash pickup, phone, internet, and electrical. It’s important to realize that these utilities tend to be more expensive when it comes to a commercial setting. For example, your internet provider will charge more for the same service package when you have it installed for a commercial space than if you were to have the package installed at home. This is likely due to the need for quicker response times for issues and more demand on the system.
When making the decision of whether or not it’s time to move your business to a commercial space, there are many things that you’ll need to consider. The costs associated with that move are one of the most important factors. The above are just some of the many expenses that you’ll need to budget from when making your overall decision.