Workspace by Rockefeller Group Insights – 3 Tips for Choosing a Lean Startup Office Space
With a rise in startups in New York City, we are getting more and more inquiries for office space, especially small one or two person companies. The best advice I can give any company is to choose the right size office space, so you can keep your business lean and efficient. Over many years of working in this industry, I have seen a wide variety of office spaces available in New York City. I’ve seen all kinds of businesses fail or succeed because of their office space decisions. If you’re starting out and considering your need for office space, here are some tips for choosing your lean startup office spaces.
Start small, even if it’s virtual.
So you setup your business, but you don’t have a client yet? Before considering leasing a physical office, or asking for loans to pay your office space, consider a more cost effective and reasonable option: virtual office space. As a matter of fact, virtual office space is one of the best forms of a lean startup office space. When you do have a meeting with a potential client, use day offices to conduct the meeting with them. That way, you will keep the overhead low, while still having the ability build credibility and impress your potential client.
Invest and choose flexibility, not size.
Over the years, I’ve seen many businesses fail due to a long term and expensive commercial lease. These leases can be as long as 5 to 10 years. Signing a lease for such a long period really locks your business model in for what could be much longer that you want. Many businesses fail because they sign the lease thinking there business is going to trend in a particular direction, and it does not. Their requirement could be for less, or even more space. This is why choosing flexibility over size is a great way to run your business lean and efficient. The lean startup office space should always be able to size down or up, according to the needs of your company. Serviced office providers offer this flexibility with shorter commitments and a variety of options.
Choose location strategically.
Location, location, location. It is the mantra of the real estate industry, and for your lean startup office space. But there are so many factors that go into what makes up the best location for you. Transportation for you, your staff, and your clients; proximity to your clients; quality of the address as it reflects upon your corporate image, etc. What starts out as the ideal location, can be negatively impacted by a change in these factors. While locked into a traditional lease for up to 10 year, your premier location could in fact hurt your business if things change for you. By maintaining the flexibility that a serviced office space has to offer, you are free to move your business more conveniently, as things change.
David is the Director for Workspace by Rockefeller Group’s flagship Rockefeller Center workspace. Before joining the team in 2000, he worked for some of the largest hotel operators in the world. As a result, David’s insight into both the management and consumer aspects of the office suites industry is unrivaled. He has developed a strong rapport with the region’s commercial real estate brokers and facility managers, with whom he has interacted productively for many years.