There are many firms coming up everyday due to the efforts of high and
able entrepreneurs. The scenario in business is undergoing a rapid
change. Various companies are investing in new offices in other cities and
thus diversifying or expanding their businesses. Large scale and medium
scale multinational and national level firms too are seeking expansion.
There are various real estate builders lining up to offer these
companies easy office spaces due to the lure of earning steady income through
lease and rentals.
Risk factor
There may be certain jeopardizing factors approaching these firms. As a
business man looking for expansion or diversification or a new opening,
there are certain risk factors that are involved. The person making the
investment may not have the necessary knowledge and time to look into
these risks. What can be the possible risks?
-The person needs to introspect at first, the real estate requirements
and specifications for his company in the small, medium and long run.
Do I actually know them?
-Do I have any idea of the base of foundation specifications that I
will want before as a final point before moving into the office?
-Are there any chances of any legal problems in purchasing an office
space? If yes, what can be the possible ones that have not struck me?
Usual problems
-The space that the person has bought may be too small. It means that
the proprietor made a wrong estimate of the office requirements at the
start of the buy out.
-These problems of space create an unhealthy atmosphere and don’t allow
people to work at the level of their personal space. It may also create
congestion and inefficiencies.
-The human resource department may also face troubles in coordinating
with the other departments. The business may thus suffer.
Tackling these problems in advance
-Professional help may be needed from architects and project managers
who make exact calculations and thus come up with the right size needed.
-You must analyze the requirements for your firm in the coming years or
on the basis of a long term, medium term and short term criteria.
-Foresight is an important need and the space available per head needs
to be analyzed.
-The firm needs to look at various other perspectives such as nearness
to the potential patrons, the competing business houses, the suppliers
and the various stakeholders of the business.
-Air condition, 24x7 electricity and water supply, broadband
connection, telecom facilities, parking slots required, etc. are the various
vital and prime things to be looked into, well in advance.
-Office rent, maintenance charges, parking rentals, Tiffin rentals,
electricity billings in the particular area and other potential unforeseen
costs must be well calculated.
-Approach consultants and other experienced business houses or partners
and prepare a check list of the various things to be kept in mind.
- The best option can be to outsource the responsibility to someone who
is a professional in this area. A short term investment can lead to a
long term gain.
Written by Will Smithston. Team Wealth Builder Forums, an online
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