As the global economy has grown, so has the need for commercial spaces. Commercial real estate is one of the most in-demand commodities in today’s market and it can be easy to make mistakes when looking to expand your business.
Whether you are an entrepreneur or a company with multiple locations, there are common mistakes that should be avoided at all costs if you want to avoid potential pitfalls. Here are five financial errors that will cost you big time if you’re not careful:
Mistake #1 Don’t be afraid to negotiate
One of the easiest ways to save money when looking to expand is to negotiate. By negotiating with professional self-performing contractors, you can save yourself thousands of dollars on your project.
While this may seem counterintuitive considering that contractors are already established in their field, these professionals are usually looking for ways to make sure they get work now more than they are looking to close a deal.
This is especially true when you consider the fact that many contractors operate with minimal overhead and can perform your project from their existing workforce. Plus, they’re looking for people to refer them out to, which means you’ll be marketing their business through word-of-mouth if they get the job done right.
Mistake #2 Don’t forget to consult with an accountant
A big part of growing your business is hiring new employees. While this can be a great way to expand, you should never neglect to consult with an accountant about how new employees can be beneficial to your business.
For example, hiring more staff members means that they will need more pay which is not only a good thing for your business, but is also beneficial to the economy and can be a boost to local businesses.
So, don’t make the mistake of overlooking the potential benefits of hiring new employees. Besides, asking your accountant for their insight can help you avoid making a costly mistake down the road, which is why consulting with them is especially helpful.
Mistake #3 Consider the long-term effects of your decisions
As you begin to look at commercial space options for your business, you must consider the long-term effects of leasing. For example, leasing a retail property means you can’t sell it if your business isn’t doing well and it also means you don’t have a place to call your own.
On the other hand, a property that you purchase will give your business a sense of permanence and it will also help you bolster your credit. Consequently, you must consider all the pros and cons before signing a lease contract.
This is a big mistake to make since the economy can change drastically over time. Also, it’s important to keep your options open when looking to expand your business. If you are looking to sell your business in the future, make sure you keep this in mind when looking at new space.
Mistake #4 Make sure you have a solid business plan
You can’t expect to grow your business overnight and you should never take out a loan that you don’t think you’ll be able to pay back. So, when looking for commercial space to expand your business, make sure you have a solid business plan that will ensure your success.
Whether you are looking for commercial space in your local area or you plan on expanding globally, make sure that this is the right business decision. Even though it can be an exciting time to finally look at commercial properties, make sure you take a step back and consider the long-term effects of leasing or renovating your property.
After all, it’s important to get your business on solid footing before you begin laying down roots so that it can grow with your vision. This means you should know where your business is going and how it will continue to be profitable long after you expand.
Mistake #5 Stay organized and keep track of your expenses
One of the most common financial mistakes that business owners make is forgetting to stay organized and to keep track of their expenses. Whether you are an entrepreneur or you manage a company with multiple locations, make sure you are tracking all of your expenses.
Unfortunately, the last thing business owners want to do is spend time digging through receipts looking for expense information, but this is an important part of the business process. If you are not keeping track of your expenses, then you are just asking for trouble.
So, when you’re expanding your local business, these financial errors can cost you big time. Avoid these mistakes and stay on track to expand your business successfully without sacrificing your financial stability.