Regardless of what area you work out of finding the right kind of office space for your firm is very important. Where you choose to locate your business has a significant impact on how your company is perceived and how easy it is for you to grow your business as well as how profitable it is.
Below we explain more.
In business, perception is important. Before people will place an order with you, they need to feel confident that you will deliver a good product at the agreed price and to the right timescales. How they decide whether you are a trustworthy firm or not is complex, but one of the factors that helps them to decide is the area you are based in.
Opting to lease office space in Monument or a similar well thought of area is a good business move. Basing your company in an area that has a good reputation, and is perceived as an area where other well-established and trustworthy firms operate, is a good business move. Your firm can benefit from being associated with companies like this.
It is far easier for someone to trust a firm that is based in a good neighbourhood than it is for them to have confidence in one that has its headquarters in a rundown part of the city. This holds true in Michigan, London or Tokyo.
Whatever part of the world you operate in always try to base yourself in a good neighbourhood. You may have to pay a bit more rent, but usually you will easily cover that additional cost because you will get more customers.
That brings us to another important point. Your firm can only grow its customer base and become more successful if people have enough confidence to order from you. Without a good address and offices or business premises growing your customer base becomes very difficult.
Naturally, the more sales that you make the better your chances are of being profitable. However, that does not mean that you should automatically go to the most expensive part of your neighbourhood and lease an office.
You need to first assess how much you can afford to pay for your office space and look for business premises that are within that budget. Working out what your competitors are charging for a similar product or service is a good starting point. You can then work out how much it costs you in labour, materials, plant and power to produce each unit. What is left over is your profit minus taxes. Multiply that by your average throughput and you will be able to see how much you have left over. Some of this cash is what you can use for business premises. If there is a lot in the pot, be bold and rent in a good area. On the other hand, if money is tight look to rent in a cheaper, up and coming area instead.
Taking the time to find the best business location for your firm within your budget will make it easier for you to be more successful.