For the business owners out there who’ve never had a proper ‘hub’ to run their businesses from, the idea that you could finally get an office space for yourself can send you whirling with excitement.
You’re going to be able to put a workspace together, with a professional address, and invite clients and partners into your branded, well designed space and let it do all the talking for you.
And you’re right to be excited – this is a great milestone in your business journey! But it’s also an expensive one.
You need to have a budget for an office upgrade, expansion, or adoption and you need to have one ASAP. Here’s how to put it all together and keep your business in the green as you lock down your new office location.
What are Your Mortgage Chances?
Yes, even office owners need to investigate their chances for securing a commercial mortgage – as well as how likely they are to be pre-approved for a loan at this stage in their business life.
Because when you’re pre-approved, the process moves a whole lot faster, and that’s simply better for business.
However, it’s not an easy thing to get under your belt, as commercial loans are even harder to apply for than private mortgages on residential properties.
Office space is quite the hot commodity, for one, but it also has a much higher tenant/owner turnover than the domestic side of real estate too. And if you fail the credit check, that could impact your credit score and leave a hard search on your credit report.
But you don’t even need to contact any mortgage brokers or lenders at this point in time. You just need to put in a bit of research.
This is where you can find out who’s likely to consider your application, as well as calculate the amount you’re likely to get, the term length you’ll be working with, and whether or not that’s viable for your budget as is.
What Will You Be Paying For in this New Space?
You work from home right now. Your business has practically no overheads at all, other than a webhost you’re paying for, or an outsourced accountant you keep on a retainer. But other than that, there’s not much in the way of bills.
When you move to a commercial office space, however, this is going to change. And it could change rather rapidly. Your budget needs to account for these changes in advance, so you’re prepared for the bills that will start coming your way.
If you already have a small office with a few overheads, taking on a new location could double (or even triple) the overhead costs you’re currently dealing with. And the longer it takes you to move from one location to the other, the more severe these costs are going to become.
If you’re moving to an office, your budget needs to move with you. Plan it out with the tips above.
