When it comes to moving into a new office space, one of the most important things to consider is your budget. While it’s easy to get excited about having more space and a fresh new location, you’ll have to stay focused on how much can you afford to spend on rent, furniture, and other expenses involving the move. Here are a few tips on how to calculate your budget for your new office space:
Monthly Outlay
Office expenses come in a few forms: regular monthly expenses, one-time move-in expenses, and occasional expenses. To get a realistic sense of what you’ll be spending each month, start by creating a list of all your monthly office-related expenses. These could include:
- Rent
- Utilities (electricity, water, gas)
- Furniture and decor
- Telephone
Then consider your one-time moving expenses. These will include the costs of actually physically moving your office, like hiring a moving company or renting a truck. Other one-time expenses might include:
- Lease deposit
- New keys or access cards
- Commercial contractor
- Signage for your office
- Cleaning services to prep the new space
You should also factor in occasional expenses, like repairs or renovations. These costs will vary from month to month. They can also come in the form of sports team sponsorships, replacing or upgrading equipment, or an occasional out-of-town business conference.
Crunching the Numbers
Now that you have an idea of your monthly and one-time expenses, you can start to calculate your budget. To do this, you’ll need to consider two things: your monthly income and your operating expenses. Having a clear idea of what is coming and going each month will help you make informed decisions about your spending.
Your monthly income is, of course, the money that comes into your business each month. This could be from sales, investments, or other sources. To get a realistic sense of your monthly income, take a look at your financial records from the past year and calculate an average.
Your operating expenses are all the costs associated with running your business, including your office expenses. To get a realistic sense of your monthly operating expenses, again take a look at your financial records from the past year and calculate an average.
What Can You Spend?
Once you have your monthly income and operating expenses, you can start to calculate your budget. To do this, simply subtract your operating expenses from your monthly income. The result is your monthly budget. For example, let’s say your monthly income is $10,000 and your operating expenses are $5,000. This means you have a monthly budget of $5,000.
Now that you know how to calculate your budget, you can start looking for your perfect office space! Keep in mind that your budget may change over time, so be sure to revisit it often and make adjustments as necessary. Happy hunting!
