When it comes to budgeting for a commercial property, many new business owners think they only need to account for rent and staffing. This is a common misconception that could leave a ‘black hole’ in the books for your accountant to deal with. There are many more costs associated with renting premises than just what you can see. Of course, office space is essential for many companies to operate, so going without is simply not an option. Before you make a final decision on your premises, take these hidden costs into account. Make sure you can afford the upkeep of your commercial property, or it could come back to haunt you later.
Many people overlook the need to source a cleaner when they’re adding up the costs of their business. Keeping your premises clean is absolutely necessary in order to comply with health and safety standards. Some companies, depending on their size, may only need a cleaner to come in weekly, while others will need daily maintenance. It’s more cost-effective to have your cleaner come in after hours or at weekends, so as not to disrupt productivity during office hours. Most businesses choose to outsource their cleaning staff. This is how most external commercial cleaning companies operate.
Along with cleaning, don’t forget that you’ll need to keep on top of any repairs. Depending on the severity of the damage, it could cause disruption to your work schedule. And if your staff are unable to work, you’re not making money. It isn’t financially viable to employ a dedicated handyman unless you’re a corporate giant. So, make sure you have a few reliable maintenance workers on speed dial that specialise in most areas of repair. If problems arise, you need to get them dealt with as quickly as possible.
Especially if you operate a warehouse, you’ll need high-tech security. Finding yourself the victim of theft is a sure fire way to put a massive dent in your profit margins. You probably won’t need to bother with the traditional security guard and vicious dog combination. For the most part, commercial security has moved with the times. However, a high-end plan will see you paying out a monthly fee to keep your premises safe, so add that to your growing list of expenditures.
Perhaps the most obvious outgoings are business electricity rates. Just like at home, you need to keep your bills paid. It’s surprisingly easy to forget the cost of actually running your office space when budgeting for your premises. Obviously, the bigger your operation, the more you’ll have to pay each month. Utility providers for businesses operate in a different way than those that provide domestically. You should be shopping around for the best deal you can find for the services you’ll need.
If you’ve found yourself in a position where you can’t afford to maintain your premises, try not to panic. Check out our smart guide to saving money on your business premises for tips on cutting costs and balancing the books.