One of the largest costs a given business is going to absorb will pertain to operational space. Whether you rent or own, you’re going to end up “paying the piper”, as the saying goes, one way or another. Look at the numbers to get an idea. If you’re only paying $1k/month for office space, that’s $12k/year. Five years brings that to $60k.
You can keep adjusting this figure as time goes by. When you’re paying rent, you’ve got to remember that the costs of rental are going to expand continuously over time, and at a “predictable” rate that parallels the stock market in the same way an outward moving ripple reflects the rock thrown in the pond’s center.
$1k/month is really a dream when you get down to it; you’ll probably be looking at $2k minimum or more, realistically; which makes yearly costs $24k. In five years, you’re out $120k. Now what if you could drastically diminish those expenses with a property on land that you own?
This becomes possible through prefabricated building arrangements, which average between $10 and $20 per square foot depending on where you buy and whether or not you use a contracting crew to help you in construction.
Finding Cost-Effective Building Solutions
You can opt for aircraft buildings such as those from AmericanSteelSpan.com, who offer solutions that are easy to install. In fact, as the site points out, “a team of four people can complete construction in three days without special tools.”
You don’t have to use an aircraft “hangar” for aircraft. Get some friends together and install your startup’s new office. This is definitely “out-of-the-box” thinking, but it’s the kind that could make or break your business.
Starting out, you can’t afford to spend $60k to $120k unnecessarily in the first five years. Especially not if you can cut that expense down substantially while getting more from your money at the same time. Entrepreneur.com comes right out and says it: one of the best ways for startups to save initially is to “skimp on infrastructure”.
Other ways to save money include home-office solutions and cloud computing. Apply a cloud-computing solution to a prefabricated structure, you can save on building and even managerial infrastructure.
These days it’s possible to conduct your entire operation remotely, depending on the needs thereof. You can outsource managerial/secretarial infrastructure to employees who work from home at an hourly rate (or at a predictable schedule) that you work out with them beforehand. This is only possible with the cloud.
The Bigger Picture
If you build a 1,000 square foot structure at an average of $15 per square foot (the mean of the $10 and $20/square foot statistic alluded to earlier), you’re looking at $15k. If the land you build on cost you $5k, you’re looking at $20k before interior decoration.
Add in solar and wind power, outfit the inside nice, and decorate the thing, it’s conceivable that for $40k you can own your home base and the land it sits on. If you do this rather than renting at $1k a month, over five years you’ve saved $20k—likely more, when you factor in natural inflation costs.
Take it further: if you were paying $2k for rental a month, then over five years you’ve saved $80k. That money can be devoted into future expansion, or the streamlining of existing production/service techniques; whatever it would be best to spend it on. There are many possibilities here.
You can contact this West Virginia steel contractor for more information pertaining to prefabricated metal structures if you find yourself interested in these possibilities. Modern construction and architecture have modern technology behind them today, and proper application of these solutions stands to make your launch more secure.