For many small businesses, office rent and inventory storage costs are viewed as a fixed cost. They are fixed right? Wrong. These expenses are not truly inflexible. They can be altered with a little effort and ingenuity. Because rent and storage costs often constitute a significant portion of a firm’s total expense budge, creative owners find ways to minimize those costs and in the end may reap substantial rewards. You have a lot of options to consider here in Boulder County. Consider the following:
Rent-is it negotiable? Your landlord prefers monthly lease payments for that dormant space and no income. So look around and see what you can find. Check out the office spaces on Main St. in Longmont and then check other offices around town. If you need parking for your customers, look for offices with good parking because Longmont has some really good places with parking and some places with restricted parking. If your business is located in an area with unoccupied office buildings, you can take advantage of a strong bargaining position. Open up negotiations, especially if you’re nearing the end of a lease term. If your company is struggling, then consider letting your landlord read your firm’s financial statements, making it clear that a reduction in rent would enable your business to survive and prosper. A renegotiated lease agreement might also provide for a temporary rent reduction in exchange for increased payments when sales start climbing. Everything in life is negotiable, so start asking.
Moving- is it an option? Just because you settled in this location years ago doesn’t mean that you should stay put. You might get better lease rates across town, be closer to your customer base or suppliers. Some parts of Longmont have really grown, while other areas seem destitute. You could always pick up your bags and take your business back home. Working out of your garage or spare bedroom until sales revenues pick up may prove to be a wise business move. It would enable you to recapture more of the profits and reduce your expenses.
Subletting space- should you become a landlord? If your current landlord agrees and your lease terms allow, you may be able to generate additional cash buy setting aside space for rent-paying partner or another company. But be sure to consider the possible ramifications. Confirm that you would need the space in the near term, and don’t forget to specify conditions under which the location can be reoccupied or the lease terminated. For example Circle of Health in Longmont did this and made a really cool business. They made an awesome business by bringing in other health providers into their office. Make sure that when you consider subletting space, you consider bringing in people who compliment your business. This will help you bring in more customers without spending a fortune on advertising.
Inventory control- can you minimize storage costs? If those goods have been sitting on your shelves for too long, it may be time to sell, donate, or otherwise dispose of them. Insurance, spoilage, interest, and taxes- all these costs are associated with storing unused or obsolete inventory. It can eat up your budget in a hurry. If storage capacity is limited, disposing of obsolete stock may also free up space for saleable items and fresh materials. Let’s face it old products don’t sell no matter what you do. Take quick action to get rid of it. You could donate it to a local charity such as Mountain States Children’s Home Thrift Shop or to the Humane Society Thrift Shop. Donating to local organizations help our community, so pick one.
There are many options available to you these days. There are offices available from Longmont, Lyons, Boulder, and beyond. With all of these locations nearby, there is a really good chance of you finding the right space for the right money. Not to mention there is a huge boom in the real estate market, which will help you bring in new business. This area is great for building your business, don’t let your fixed costs put you out of business. Be the savvy business owner that we know you are and make wise decisions to help you grow your business.