One idea. And a considerable amount of capital.
That’s all it takes to start a multi-million dollar business. True?
For setting up a business is beyond mind and money. You need to lay the foundation for your business backed by an idea that’s a step ahead of sensational.While burning the night lamp is a necessity for any business to shine, you do not need to burn a hole in your pocket. A big one at that!
While you are wading in so many aspects of building a business, you might have forgotten one thing that actually has the power to make or break your dream.
Budgeting, that is.
When it comes to established giants that have been dominating the industry for long, Capital & Budgeting is one aspect they don’t pay much heed to. However, for smaller businesses, especially start-ups, CAPITAL is everything. Many businesses, in their eagerness to build an empire don’t give the required importance to budgeting. Hence closing the gates even before they opened.
Reflecting upon this, here is a tip which is probably one of the most important, yet easiest forms of budgeting that every business should consider. Renting an office space instead of buying. And that’s not the only tip we are giving.
Here are a few things you should consider:
The Hindu, a dominant newspaper of India states that, India is the largest startup nation with nearly 80,000 jobs created in 2015, making it the biggest year for Indian startups (The Hindu, 2016). While this surely favours the Indian market, this also means major hike in real estate demand. Because of this, it can be difficult for you to find a good office space in a prime location, causing serious hurdles in your path to success. After all, location is everything. Even if you do manage to find a good spot, with such high demand, the cost is surely going to be something unimaginable. On the other hand, renting a workspace gives you more locations to choose from, that too, at an affordable rate. Especially in metropolitan cities like Mumbai or Chennai. For example, if you choose to rent a serviced office in Chennai, you can pick a spot not only in a location you want, but also avail all the amenities without extra costs.
“According to our policy, we do not provide advance. You will be paid once the task in completed.”
How many times have you heard this one dreaded line?
For a small scale industry, especially a startup, cash flow is probably one of the most important aspects. After all, client is king. And, the king is always right. In such circumstances, it is very important for a company to have funds that will help them keep afloat. When you choose to rent a space, you are not only saving funds, simultaneously you are also ensuring that you have a steady cash flow for dire situations.
Your business is successful. You have your own office. There is an overflow of clients. It’s time to expand! Your dream has come true. But, how? Do you have sufficient funds to buy a new place?
On the other hand, if you choose to rent, leases can be renewed, spaces can be expanded, the possibilities are endless. After all, success should never be a barrier for the growth of your company.
An office space plays a lead role when it comes to branding a business. Based on the place where you work, your business will be positioned.