Many begin the dream of becoming an entrepreneur by running their business out of their home. Reason can range from saving on expenses, or they simply do not need a lot of space to run their business. For Jennifer Manriquez of the Bilingual Fun Co., she found working from home provided a perfect balance between family and career. “At the moment, the home-based setup is the right balance for me. With my young children’s busy schedules and daily lives, the flexibility it provides me is definitely worthwhile.”The reality of a home based business owner is facing the day they outgrow their home office. Unfortunately for some, that day arrives much faster than expected. Therefore, it is important to remain sensitive to the signs that your home is no longer the place for an office. Have a plan in place to identify the warning signs so that you can be prepared.Product based businesses can easily expand beyond the walls of a home. When the dining room table and/or family room have become your warehouse, this may be a sign you need a separate warehouse or possibly expand to a store front.The flow of customers and vendors through your front door may also be an indication that an alternate location may be needed. The increased traffic may be an issue for your family, but many neighborhoods and homeowners associations do not permit this type of traffic. It can also be an issue with your business and/or homeowners insurance and the amount of liability coverage for which you are protected.An outside office may be more conducive if you struggle separating yourself from your work. If you find you are sneaking into your office after dinner to catch up on a few things or you spend a few hours here and there on weekends working on projects. For some, it is easier to have a defined separation between work and home locations.As your business grows, there may come a point that you need to add staff. A home-based business can pose many challenges if you need your employees to work in close proximity to yourself. As Jennifer Manriquez sees in her plans, “I envision more space for additional employees one day. I have found that I am more productive if I am able to delegate some of the tasks that are very time consuming. I would like to have an office space specifically for my own staff so that they have the resources, materials, and space for completing the necessary work”. Again, your homeowner’s policy may not cover liability exposures for your employee’s, therefore; you will need to have a separate work location once you bring employees onboard.When you get to the point of exploring possible locations, assess what type of an office you need. Look down the road for future needs to prevent frequent moves. Will you be adding staff within the next year or two? Will you need additional space for additional equipment as your business grows? If so, keep that in mind so you have a location for expansion, otherwise, you will incur additional costs and headaches in moving.Consulting with a commercial real estate agent will provide you with the expertise to find a location to suit your needs and help negotiate the best cost per square foot. They will also help navigate the many contractual agreements to consider in a lease, such as, build-out expenses, utilities, security, maintenance, and rate increases. Successfully choosing your new location for your business will help your business become more successful.
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