Initially, finding a location is one of the most difficult tasks for new businesses. The fact that this type of organization may have to move quite frequently is also worth mentioning. The most successful start-ups perceive the possibility of attracting a large number of investors, which requires extensive recruitment. As the size of the company increases, it is necessary to invest in larger offices.
A company’s choice of office space is crucial, and price is not the only factor to consider.
In addition to these two factors, the success of your startup will be determined by two other factors. First, size. Because of the low rental price, don’t accept a space that is too small. If you don’t want to pay for a new place to work, it’s best to think ahead and plan for possible expansion.
On the other hand, renting office space that is disproportionate to your needs will result in irrational costs.
It is also important to consider the accessibility and beauty of the location you are considering.
A short walk to a train, bus or subway station and a fair commute time will be greatly appreciated by your employees. The attractiveness of the neighborhood is also an asset. The presence of a few small restaurants, cafes and stores nearby is very motivating for staff.
There is a problem with the commercial lease
It seems that the commercial lease, commonly known as the “3,6,9 lease”, is not adapted to the framework in which start-ups develop. For a business with an unclear future, three years seems like a long time. To sign a long-term lease of this type, you’ll need to have a strong backbone, significant cash flow and a host of other collateral, not to mention move-in costs and real estate fees. Even if your business is expanding rapidly, standard office leases may prevent you from being able to “grow the walls.” While some businesses grow from 50 square feet to over 100 square feet in a single year, it’s not uncommon for this growth to occur.
Even with this caveat, growing firms with strong investors can benefit from subleasing their unused space under a lease like this.
At home, what are the first steps?
Working from home is the first thing that comes to mind when talking about a small startup that is just getting off the ground. When launching a new business, a “home office” is the most cost-effective option. A home office is a great way to get started, as it eliminates additional rent costs, transportation expenses, and time spent traveling. Although, this can last indefinitely due to clutter, mixing and lack of space when the company hires more workers. To further legitimize its image and reputation, a company worth its salt needs to have a dedicated office or space within weeks.
Yes, incubators are a great way to get started
If you think of incubators as just office space, you’re missing the point. For young entrepreneurs, they are a convenient and cost-effective option that can help them get their business off the ground. Entrepreneurs can use business incubators to test their ideas for a year and get help in various ways. On the other side, incubators frequently rely on public organizations or organizations associated with major schools for support. They are passionate about digital ventures, and they provide an ideal setting for a startup. That said, these arrangements may not be attractive to all entrepreneurs, especially those with a clear vision of their business who are simply looking for a place to work.
Places where people can come together to work
This is an office model that has taken off in the last decade or so. In the past, the idea of working with another company’s staff seemed far-fetched, but now it’s becoming more and more popular among new entrepreneurs. A coworking space is a great option for small teams who care about their work environment and professional atmosphere. In fact, many offices stand out for the variety of amenities they offer, such as coffee, a gym, a play space, etc. To be honest, if you have more than two or three employees, this style of “office” may not be ideal.
Buying your own workplace is something you should consider
Many young startup owners don’t consider this option because of the high cost of real estate in Luxembourg’s major cities and the fact that this type of business often has very high growth targets, which means they may need to double or more their workspace. If you want to buy a home in Luxembourg that can be expanded, you’ll have to look elsewhere.