When It’s Best To Look At Small Office Space In NYC
Written by Don Seckler on December 15, 2015 in Blog
For a first time or even a seasoned business owner, finding office space in New York City can be challenging. Concerns over business needs, company size, and budget are just a few reasons why locating office space that works for you can become a stressful and long, drawn out process. Although there are several reasons to fret over office space shopping, knowing when to look is a great way to alleviate some of the worry that goes hand in hand with this process.
Your business has outgrown its current space – Business growth is what every small business owner hopes and dreams for. However, once a business begins to thrive, its office size does not always grow with it. Since a flourishing company could mean a larger list of clients, this may also result in more employees and therefore, less office space. If your business suddenly feels like the size of a sardine can then relocation may be the answer. Consider these three signs from Blogtrepreneur to determine whether or not you have outgrown your business.
Employee retention is low – According to Ere Media, employee turnover costs a staggering $16,000 to replace entry-level employees earning $40,000 per year, or 30 to 50 percent of their annual salaries. The reason for this is due to the effort that goes into bringing an employee into the company, properly training them, and then re-training their replacement, among various other reasons. Just to put this in perspective, if retention is low and five entry level employees earning $40,000 per year quit the organization then it will cost you a mind boggling $80,000. While this sort of a financial hit may not be a problem for a larger organization, it could kill a smaller company. If your small business is losing money due to employee retention then it may be best to consider a smaller or cheaper office space until the situation is resolved.
Rebranding will soon take place – The way you brand your company is one of the main contributing factors in its success. What many people fail to realize however, is that rebranding a business in one location may not have the same effect as it would in another. If your business is planning on rebranding then it may be a good idea to consider whether or not the current location fits your new image.
Your current office is too expensive – Office space, especially in New York City, can be extremely expensive. Although base rent is a huge factor when considering an office, other costs associated with renting a space could place a small business in an unforeseen financial situation. According to SpacesNY, common office fees that include the obvious fees, such as electricity, may turn into hidden costs due to the way it is charged. Since this varies by renter, tenants may be charged “Plus electric,” or electricity by square foot; “Sub metered,” or charged for your usage plus an administrative fee; or “Direct meter,” which means that you pay the utility company directly. Although electricity is just one example, the way something is charged may be unexpected and could result in costs that are higher than anticipated. Considering a new, inexpensive location whose billing options closely match what you are comfortable with may be a viable solution.
The area does not reflect your company’s culture – Company culture says a lot about a business. The ideals, beliefs, and values that your company holds run deep into the heart of the organization and may even define the way that you brand yourself. Due to the importance that company culture has on an organization, renting or owning an office space that reflects those beliefs should be equally as important. The Square Foot explains just how crucial the right office space is to company culture. Choosing the right space to match your culture may not only improve employee satisfaction and retention but according to Forbes, it could even increase employee engagement.
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