Start & Run a Graphic Design Business. Michael Huggins

charge more to pay the rent and keep the lights on. Don’t forget to factor in all the hidden fees you’ll have with a new office space — everything from higher gas and automotive maintenance fees, to higher restaurant fees because you’re always on the run and eating out more often as a result.

      It takes commitment: Another downside to renting office space is that it often requires signing a lease. That usually means that you are committing to a set period of time to make lease payments. This means that you can no longer live “by the seat of your pants” when it comes to getting work. You’ll need to take a long-term view of your business and assess if you can continue to raise the funds needed to fuel the cost of running your business from an office. Of course you won’t be able to say for sure what tomorrow will bring, so that in itself takes a leap of faith and a determination to make it work.

      3.3 Finding the best office space

      If you choose to rent office space, you’ll have some important decisions to make. You need to decide on the size and location of the office. You will also have to consider the layout of the office and if the space will be a comfortable and productive space to work. The most important thing to consider is how much it will cost to rent the space.

      Only you can determine what the best office space for you will be. It will be largely based on your values of what a comfortable environment is to you. There is a minimum size that you should consider having. The smallest area you could probably get away with is approximately a 12 feet by 12 feet office area (approximately 140 square feet). Your office space should be clean, inviting, and have a restroom close by. Having a window to the outside world is also something to consider. If you don’t have these basic elements, then you may be looking for a bigger space to accommodate your basic needs.

      There is also the consideration of where this office building will be located. Consider the fact that you’ll probably be able to rent a larger, classier office space located in a small town for the same price that you would pay to rent a small 12 by 12 room in a large city. Another thing to be mindful of is that you will probably pay a little of a premium due to the fact that most offices don’t promote renting such small offices, but rather try to encourage and attract the larger businesses.

      4. Leasing Office Space

      It’s wise to take your time when it comes to signing your lease. As you can see there is a lot to consider when renting office space. Although renting space will be new to you, it probably won’t be to your landlord. Take some much needed time to review your lease agreement carefully. Don’t take anything for granted. A lease is among one of the biggest legal documents you will sign and commit to in your business. Most leases include all your taxes, heating, and hydro plus any maintenance costs associated with running the building. Be extra careful to calculate all your costs against the advantages the new space will bring you.

      You’ll be able to get better rates in leasing space when you commit to longer lease times. Your square footage costs could drop dramatically the longer you commit to staying. While this might be tempting (and you may be very optimistic about your business) it’s wise to ease into your leasing agreements. Try for a one-year lease arrangement to get used to your new environment and payment commitments. You can always increase the length of time you lease after a year or two when business is booming and you’re looking to save a few dollars.

      5. Subletting an Office Space

      Another approach you can take as a design business owner is to share office space with another designer or creative professional such as a writer or illustrator. Often two people don’t require twice the space when it comes to sharing an office, so your fees for renting will actually be reduced.

      This can also be an excellent opportunity to rent an even larger space complete with a small meeting room that you mutually share to meet your own individual clients. To find a suitable “partner” to rent with try asking your colleagues to see if they are interested or if they know of anyone who is interested.

      6. Making Your New Space Pay You

      As with any new place there will be costs involved with moving and furnishing your new space. Moving into a new office space can bring about all sorts of surprise costs, such as redecorating, furnishing, security systems, and possibly upgraded phone lines or Internet services.

      Be sure to calculate your cost to move and outfit your office effectively. Ensure that you’ll be able to cover the costs for your move within about a year, either through increased efficiency or by bringing on more work. Be careful not to base renting your new digs on speculative work. Economic downturns can happen quickly and have been the cause of many

      design firms going under. You want to make sure that your office space is an investment that pays back what you put into it. Some experts say that you should expect a two-to-one payback from your office space.

      For more information about office supplies and software, see the Appendix “Outfitting Your Office."

      Part III

      MARKETING YOUR BUSINESS