If you are thinking about leasing a space for your business, there are certain factors to consider before doing so.
And in this article, I will try to show you certain things to look out for and some questions to bring to mind before signing any of those documents.
Factors to consider before leasing a space for your business.
Below are the basic factors to consider before leasing a space for your business:
- Your amount of space
- Don’t build on leased land.
- Do you have a parking space?
- Are there restrictions in the lease?
- Who are your neighbors?
- Are there penalties for breaking the lease.
1. Your amount of space
Make sure you do not rent more than the space you will need when leasing a space for your business.
Decide on the amount of space you will require for your business operation.
Most business owners make the mistake of leasing additional space, all because they hope to use it real soon for another business.
But unless you have the capital on the ground for that other business, never dump the money you should use to expand this particular business on a space you might not need soon.
2. Don’t build on leased land.
I’ve seen many people make the mistake of building on leased land.
They think that because their rent will be deducted from their expenditure, it’s the same as if they used the money to lease a building.
But be aware of the fact that before you finish the structure it might run to 10 years or more lease.
Then why not lease a shop for 2 years and use the 8 years lease to invest more before the 10 years gap you might just be an owner of a business place.
3. Do you have a parking space?
This factor depends on your kind of business, that is to say, if your business will attract many employees and customers who will be coming with their cars.
If your business requires such, check to see if there will be enough parking space for both your employees and customers.
4. Are there restrictions in the lease?
Check to see if there are parts of your space that belong to someone else who might restrict your trespassing.
5. Who are your neighbors?
The neighbors you are going to look out for here are going to be your competitors.
This goes to say you should check to see if you have someone close by already selling your kind of products or offering your kind of service.
My advice here is that you try to either minimize your competition or completely keep your competitors out.
6. Are there penalties for breaking the lease?
Try to find out if there are any penalties for breaking the lease, and if they are too high, consider looking elsewhere.
Before you finally sign the agreement, ensure you have your lawyer and or witnesses get their parts sealed.