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Starting a business is challenging and takes a lot of courage. As business owners, you have to wear multiple hats. You might not be an expert, but everything from building the team to managing the finances falls on your shoulders in the initial phase.
Having a nice workspace might not be a necessity starting out, but it sure boosts the morale of the employees to be working in a pleasant environment. This might be incentive enough for young entrepreneurs. However, there are numerous financial benefits of having your office space, such as tax rebates.
This article discusses the different money-saving hacks startups can employ to get the best space without shelling out all their money. Let us begin.
Negotiate
This may seem evident because you may assume that negotiations take place before drafting any lease. However, the first draft of the contract may not be everything you are looking for. Therefore, read the document properly and negotiate the terms according to your requirements.
Also, the first draft of any lease is usually in favour of the landlord and not the tenants. This rule applies to commercial contracts as well. Make sure you at least reach a neutral ground through your rental.
A common mistake that most landlords make (usually in their favour) and businesses ignore is the calculation of the rent-able area. An easy solution to this is to allocate a reasonable amount of time to go through the fine print if you are renting a small space. It’s best to hire a professional if you are renting a spacious office.
Research
The prices for commercial spaces within a block can vary immensely. Therefore, researching not just the prices but also the amenities and additional costs that are associated. Researching all these minute details will help you make an informed decision and prepare you while negotiating the prices as well.
Time is money for budding entrepreneurs, therefore researching options will also equip you to walk away from a negotiation that is not going anywhere without having to start back at square one.
Another advantage of researching beforehand would allow you to understand the tax you might have to pay on your property. Reading up on gst online regarding your property would be a great starting point for businesses.
Reach Out To The Landlord Directly
This is a tough nut to crack. Landlords of commercial spaces do not always like to engage with tenants because most of them do not want to participate directly in negotiations or are too big to pay heed to it. However, getting past the brokers and negotiating directly with the landlords will help you save up on the brokerage fee and get certain favourable terms in your lease.
Reuse
Most commercial spaces usually have an existing structure either set up by the previous tenants or provided by the landlord. You might be tempted to refurbish the entire area to transform it into your dream office; however, that will only end up hurting your savings. A smart choice is to remodel your ideas according to the existing structure.
Repurposing your office is essential because any expenditure beyond the tenant improvement allowance specified in the lease will have to come from your own pocket. Although you may convince your landlord to provide a favourable allowance, it will not cover the entire renovation cost. Therefore, reuse.
Verify
Verifying details such as tax rates, special economic zones, and so on could prove advantageous for startups and small businesses. Through gst gov, the process of verification as well as knowing about useful schemes has become extremely simple. Individuals can head to the official website for guidance through the process.
Furthermore, prospective tenants should also verify the standard area maintenance charges before signing the lease. These are usually under the complete control of landlords can surprise you. Therefore, checking the tax rebates as well as hidden fees is essential.
Takeaway
The Indian government has been stressing a lot on the power of startups to reform the Indian economy. Various schemes have been introduced to empower the SMEs. However, owners of small enterprises are usually unaware of such plans and are often deceived by landlords and brokers.
Most startup owners juggle too many responsibilities and are likely to overlook many important aspects when leasing a commercial space. By following these tips, startup owners can stay on top of things and get a good deal for their office.
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