A poorly planned move takes you from bragging about your amazing new location to trying to sublet it in a matter of months.
In fact, the wrong move kills businesses in all sectors every single day. What’s more, it doesn’t matter if you’re opening a new law firm, a factory, or a restaurant.
Therefore, don’t let the lure of a flashy new space fool you. Take a step back and make sure none of these business killers close your doors forever.
1. Look Out for Unfavorable Lease Terms
A lease can sink your business if you sign for something that isn’t exactly fair. Also, you need to be careful not to sign for something you’re not exactly clear on. In broad strokes, we include here are a few tips for negotiating a commercial lease in your favor. This can ensure you’re getting a fair shake.
2. Work with a Professional for Your Move
Always work with a lawyer, a broker, or a commercial lease expert. This is especially true if the landlord says you don’t need one.
3. Give Yourself Some Options for More Leverage
Whether or not you work with a broker, you should always make it clear that you’re entertaining other options elsewhere in the market. This can create a bit of urgency on the landlord’s part to give you a good price and fair terms, because they don’t want to lose you.
4. Beware the NNN Lease When You Move
The triple net lease, sometimes called the “NNN” or net-net-net lease, basically puts you on the hook for paying all of the taxes and maintenance costs. Typically, building owners offer the triple net lease in exchange for cheaper rent. However, you could find that you’re ending up with all of the responsibility of ownership and none of the benefits.
If you’re opening a small industrial space and your staff has the skills and equipment needed to maintain the building, this can work. However, if you’re opening a law firm and will have to outsource everything, this can cost you thousands.
5. Don’t Put Too Many Eggs in One Basket
Are you looking at a new space because you landed a huge client and you now need to expand your team and the space to accommodate it?
Nobody wants to think about this, but what will happen if this client leaves? Too many firms and agencies make this mistake. They hire a big team and move into a big space. Then a short time later, their big client moves on and leaves them with a big hole to fill.
If that were to happen, you would have a lease you can’t afford and a staff you can’t pay. Therefore, maybe it would be better to move into a more conservative space while having some of your people telecommute?
6. Think About Your Company’s Long-Term Team Culture
Speaking of commuting, don’t base your new space on where your staff lives today. Of course you want your location to be a short commute for your current staff. However, ask yourself what your future dream team will look like. Where do they want to work?
If your staff is currently made up of older employees who live in a suburban area, make sure this is the life stage your future employees will be in. On the other hand, if you foresee a demand for an influx of younger employees in the future, a downtown or urban location could be more attractive to them.
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Call in the Experts and Make Your Move the Right Way
These are only a few of about a thousand things you should be on the lookout for when you want to move your business. And this is why you should always bring in an expert.
Is it possible to overthink your business’s next move? Yes, but only if you’re doing all of that thinking yourself. Again, we highly recommend you work with someone.
Further, do the due diligence to ensure that this space comes with fair lease terms, isn’t too much for you to handle, and is suitable for your future needs.
Otherwise, a dream location can quickly become a nightmare.