20 Central Florida Lifestyle | September 2013 By Kenneth Koch, Emerson International Hardworking people master their field or expertise and start thinking to themselves, “I need to stop padding the pockets of someone else and start working for myself.” This is understandable, but starting a company can be a daunting experience. When starting a business from the ground up, you are no longer just focused on one facet of your industry/profession as you may be accustomed to when working for another person or company. You are instantly involved in every small detail that comes along with running a business from accounting, budgeting, human resources, marketing, and financial health, all the way up to the larger decisions that will ultimately set the course for the business.
A well thought out business plan is a must when starting a new business, as this should be the framework of the company and guide the path for the future of the business. My expertise is in finding a home for companies of all sizes and sophistication within a portfolio of properties across the greater Orlando area. I see everything from a startup business looking for 100 SF to large corporations looking to find space for hundreds of employees. Some of the things landlords look at when leasing office space to a company is the financial history for the past few years, credit references, and the strength of their industry; in other words, the projected longevity of the business.
If there isn’t a track record documented for a new company, the landlord will have to consider other ways to evaluate the risk of leasing to a new business. For example, personal finances of the company’s owners may be reviewed, a personal guarantee may be required, or a large deposit may be requested in order to protect the landlord from a potential loss. The landlord may also offer the space in “as is” condition, rather than injecting a lot of capital into the deal to build out the space in order to reduce the risk. In this circumstance, the company can decide if they would rather spend their own funds on construction.
The advice I would offer new companies would be to stay grounded and realistic. You may like the way a brand new class A office building looks, but you would probably be better off signing a short-term lease in a less expensive building until the company has positive cash flow. This way you ensure stability and the short-term lease will more readily allow for expansion or contraction as needed. Finding a Location for a New Business Your company’s location is important to the success of the business.