2torial #0924:
Learn2 Rent Commercial Space (continued)

Know what you can afford

What is the biggest danger entrepreneurs face when renting commercial property? Choosing a space they can't afford. Young businesses are generally the most vulnerable, but a long lease on expensive office space can spell cash-flow disaster for any promising venture.

To avoid this problem, come up with realistic business projections, and then calculate the maximum you can afford to spend on office space. Many people assume that a fancy office is somehow going to help generate business, and thus pay for itself. Maybe--but don't count on it.

On the other hand, if you plan on receiving clients on-site, you should consider their convenience and comfort, and remember that a professional image is essential. However, that doesn't mean you need to rent in a building with marble floors and spectacular views. Perhaps you should invest in "dressing up" a more modest site with furniture or landscaping instead.