Written by Elizabeth Anderson of Jumpstart: HR
If you are considering moving your small business from a home business to an office then consider the following advice from Commercial Real Estate Advisor Dave Sciamarelli of The Mackenzie Group.
REASONS TO MOVE
An industry that knows all too well of the ins and outs of relocation is Real Estate. It is the precise livelihood of helping others to move out and to move in. David R. Sciamarelli, of MacKenzie Commercial Real Estate Services, helped to shed some light on the process of deciding whether this move is made for any one company. There are some key reasons as to why a small business would consider relocating from a home-based office to a more corporate setting. David gives the following reasons:
- Fewer interruptions and distractions
- More professional atmosphere
- Increased office space
- Validation of company
- Contract requirements
- Enhance image
He also details that any small business owner must pose and answer this question: Does your growth require you to add employees? These factors will help determine whether relocating is a current need. He stresses that there are major elements to consider when making this decision: What’s your contingency plan? What happens if the economy changes or if your growth predictions don’t pan out? Do you have capital to cover expenses? Have you considered all of the expenses that you need to put in your budget (liability insurance; furniture, fixtures, and equipment; data systems, such as phones and IT). This process requires you to identify your needs, survey all the options available which meet those needs, and select and tour your most desirable options.
Once you decide that relocating is a need, you should evaluate all of the considerations involved into making the move a legitimate one. David states that size considerations are a crucial element. You must know how much space you need. Consider whether an open work space, cubicle, or work station would best serve your company. Do you need a reception area or a conference room? How about a kitchenette, bathrooms, or storage? Also, the location of your new-to-be relocated business is crucial. David says that you want to look at areas that are in proximity to your home, your clients, and your employees. Also, consider what are the nearby amenities (restaurants, shops, entertainment), the available parking, and the access to the building. You will also want to seek advice and professionally align yourself with others that will assist you in making the choices that will ultimately help your company, ensuring stability and growth. These professionals are accountants, attorneys, insurance brokers, architects, and real estate agents.
TO BUY OR LEASE
Another aspect to relocating is what entrepreneur.com refers to as a classic business decision: the business owner’s consideration between buying real estate and renting or leasing a space. In considering the option to rent or lease, David affirms that there are important benefits that come from having a landlord. Having a landlord can alleviate certain stressors involved in owning property, such as maintenance repair and response time, snow removal, landscaping, and building appearance. There are also additional services and amenities that can sometimes accompany certain leasing options, including on-site property management and fitness centers. In David’s experience in the Real Estate industry, he has seen that, generally, larger landlords offer greater flexibility to scale and more move within their portfolio. Some vital factors to think about in making this important decision are costs, capital resources, and flexibility. In speaking about flexibility, David asserts that business owners should try to determine their projections for growth in advanced, which will accurately project managed costs.
About David R. Sciamarelli:
David R. Sciamarelli, of MacKenzie Commercial Real Estate Services, LLC, is a Real Estate Advisor with specialization in the sale and leasing of commercial office space in the Baltimore Metropolitan area. He holds a Bachelor’s Degree in Business Administration and Marketing from Salisbury University and a Master’s of Science Degree in Management from Colorado Technical University. He also has more than ten years of marketing and sales experience.
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