Managing My Business, Growing My Business
Things to Consider When Leasing a New Location for Your Business
Date:24 May, 2021
Finding and securing a location for your business can be a major undertaking. The factors you need to consider when leasing commercial space touch on so much more than just the monthly rent. For instance, if you operate a retail business, the part of town you choose is critical because you are dependent on walk-in traffic. Service businesses are usually less location-dependent for customers, but location can still play a key role in creating the right team environment and your ability to retain top employees. Additionally, it is important if the service is dependent on customers coming to the location, such as salons, hair stylists, dentists, etc.
Here are some other things to think about:
This is especially important if employees drive to work or if clients come to your office for meetings.
Just about every business relies on fast Internet. While some buildings are pre-wired for high-speed communications and make this service available to tenants, this is not the case in all areas. Speak with local phone and cable service providers or ask other tenants about what service they use for reliable Internet and phone.
Sitting in traffic is a substantial waste of time. If you are considering a building, try driving to it at 9 a.m. or leaving at 5 p.m. This is what it will be like every day for your team and customers.
Are there good restaurants for meetings or luncheons and after-work meetup spots? Are there surrounding buisnesses that will possibly drive traffic to your business?
Issues Often Arise After Choosing the Location
Some of the most common issues occur when negotiating a lease and can be avoided by clearly stating and understanding the terms with your potential landlord. This does not have to be a contentious process. Remember that the landlord is also in this business to make money.
Duration: When Do You Start & End the Lease?
Rent Amount: When Do You Pay & How?
Competition: Can Your Landlord Lease to Your Competitors?
Subletting: Can You Sub-Lease Extra Space?
Physical Condition: Do You Need the Landlord to Make Improvements?
Landlord Reliability: Will They Deliver on Maintenance and Up-Keep?
Improvements: What Changes Can You Make to Customize the Space?
Your commercial lease is important, and this is just a start to the list of things you will want to consider during the process. Take some time to do online research and talk to real estate professionals in your network. Depending on your comfort level with the entire contract process, you may want to have your attorney review the lease before you sign it.
Tips to Meet SBA Loan Qualifications
Texas Gulf Bank has helped many small businesses successfully secure SBA loans. It is best to collect all the documents and information required to apply before visiting with the lender. View the SBA’s loan application checklist HERE.
*All loans subject to credit approval