Right-size your space.
Occupancy costs are a major expense. In a buyer’s market, now is the perfect time to review your business location. Perhaps you can buy a building and pay less each month than your current rent. You will need to factor in taxes, maintenance, and the other expenses of building ownership, but this could be a profitable deal, especially if you can rent out part of the new building.
Be sure to run the numbers with vacancy rates of zero to 100 percent to make sure you aren’t putting yourself in a worse position should tenants leave and the units remain empty for a while.
If you already have a mortgage, talk to your bank about refinancing, especially if you borrowed when rates were higher. If you are renting, look at space usage to see how much you actually need. Can you downsize by putting seldom-used items in storage?
Maybe some employees can telecommute or share cubicles while on site. Check current rental rates in your area to see if you have any leverage with your landlord for a rent reduction. Even if you have a long-term lease, your landlord would rather have the space filled than lose you because your business folds. If you are scheduled to move, then you may be able to obtain better space for the same or fewer dollars now.
Davis & Hodgdon Associates has been assisting businesses in the Burlington Vermont Metro area for more than 20 years. Our entrepreneurial advisory services include assistance with budgeting and reviewing overhead costs. With the right tools and a dedication to using them you are armed for sustained success. This is just one in a unique brand of services focused squarely on the needs of growing businesses. For more information please call 802.878.1963 or email [email protected].