Cities like New York can be very expensive places to start a business. It’s hard to grow your startup if you have to worry about money all the time. I’ve lived in major hubs like San Francisco, Los Angeles, and New York. While startup founders will tell you that hustling is the most important part of your success, this isn’t always feasible when trying to find affordable working spaces.
Here are a few tactics the founders of successful startups in New York City consider important to find affordable working spaces. You may have heard it said that if your idea isn’t going to be the next Facebook, you shouldn’t start a business. While that might sound like discouraging news, especially for budding entrepreneurs in New York City, let me tell you what I think: If you can make it there (and still use your money to create your idea/business), you can make it anywhere.
In this article, I’ll share some of the methods that startups use to get around the sky-high cost of living in New York City. There are plenty of high-growth startups in New York that have made it with only a few thousand dollars a month in expenses. If you decide to join the coworking revolution, sharedeasy.club provides coliving spaces in New York.
Factors that Impact the Cost of a New York Office for Startups
Determining the Space Needed
Office space is expensive. Before you sign a lease, calculate the total floor area you’ll need to accommodate your startup team members and equipment. Use this figure to determine how many square feet of office space you can afford at your current budget. If necessary, consider budgeting for more space down the road, once you’ve grown into your current location.
Let’s say that your startup is growing at a relatively fast rate and you plan to be in the space for about 18 months. You’ll want to be in the range of 175 sq / ft per employee, which will give you enough room to allow for growth. If your startup is growing slowly or you plan to be in your space for longer than 18 months, you can reduce your headcount forecast accordingly.
The Hidden Occupancies Costs
When you move into a new office, the last thing you want to deal with is hidden fees and unknown expenses. However, certain costs can be expected when leasing an office space for your business.
The first step is to make sure you understand exactly what your occupancy costs will be. Ask for a utility report before putting up a down payment on your ideal office space. Then, use our office lease calculator to determine what those hidden expenses will come out to every month. That way, you can budget appropriately and avoid making any unnecessary payments.
It’s also important to know what those expenses cover. For example, if your lease agreement includes a provision for heating and cooling, ask yourself whether the landlord or building will be responsible for maintenance and repairs of those systems. A poorly maintained HVAC system could cost more money in the long run than a higher monthly payment would have been on its own.
Interiors and Exteriors
Make a list of all the items you need to furnish your office with. Include everything from furniture and storage options to cleaning supplies and decorations. Be sure to make a list of how much each item costs, as well as its measurements if necessary, before going out shopping. This will help you stay within budget while still making sure you get what you need.
A great way to save money on office furniture is buying used items from Craigslist or an online marketplace like eBay or VarageSale. You can find all kinds of great deals on lightly used items that are still in good condition.
If you’re looking for startup office space in New York City, you might be looking at a major investment. Most of the time, your landlord or property manager will take care of the building’s exterior, but if you want to change the facade and make it more modern and welcoming, that will come out of your pocket.
Choosing the Proper Location
In New York City, there is a lot to consider when choosing a neighborhood for your startup office space. The most important thing to know is that you don’t have to limit yourself to one or two neighborhoods in NYC. Most businesses that are just starting will find that it makes the most sense for their business to occupy several different areas of New York City.
Locations in Downtown Manhattan and Midtown Manhattan are both great choices for startups because they offer many different options for growth and expansion.
Midtown Manhattan offers great access to transportation, shopping, dining, and nightlife options. While it may seem like a no-brainer choice, there are some things to consider when choosing this neighborhood. Midtown is home to many large corporations, so finding small startup office space can be challenging.
There are also strict building rules within Midtown which can make remodeling or expanding more difficult than in other parts of New York City. For example, you cannot build more than 49% of the lot size if you own an apartment building in Midtown Manhattan; this means that your company could potentially be limited in terms of its growth potential by the amount of space offered by the apartment building you choose.
It is undeniable that startups and freelancers need to work in a decent and well-designed space. Finding that perfect office or coworking space requires a great deal of consideration. You would want the space to match the productivity of your business, create a good impression for clients, and provide you with enough indoor comfortability.
If you want to keep your business in New York City, you don’t have to abandon your search for office space. Think creatively and be prepared to move quickly when you do find a place that meets your needs and is within your budget. The more solid your business plan and the more clearly you communicate with potential landlords and tenants, the easier it will be to convince someone to rent or lease space in your startup company’s name.
New York City is a great city to launch a startup in. But if you’re looking for startup office space, it can be hard to come by.