How to Lower Costs of Rent as a Small Business Owner

How to Lower Costs of Rent as a Small Business Owner

When it comes to small businesses, the most challenging part of it all is to push through until everything starts paying off. And since that is the biggest struggle, many small businesses, almost 8 out of ten, tend to close since the costs of staying open are just too much. There are many ways to prevent this from happening. One of the easiest and most practical ones is that you cut your expenses – and what better way to get started than the rent. 

All of that said – in this article, we are going to show you a couple of practical tips and tricks that are going to help you to lower the costs of rent if you are an owner of a small business.

Negotiate with Your Landlord

Now, there are definitely ways to lower your rent by different actions after you have already settled for the place you are renting. Still, the importance of thinking about proactively renting can’t be disregarded! That said, you shouldn’t be afraid of a little negotiation before closing the deal. Instead, it’s highly suggested to do so. So, be sure to try and work out a better deal, but how can you do this?

Use Your Experience to Your Advantage

Well, the best way to start is to write a respectful letter that details your understanding of the current average rents in your area, just in case you think that the rent is too high. Also, be sure to emphasize your excellent record when it comes to being a tenant. Property owners are willing to negotiate rent prices with tenants since it is pretty difficult to find new tenants in today’s market.

Think About Alternatives

Many business owners tend to make the mistake of overlooking the possible alternatives to where they can do their business. And to avoid overpaying for something that you really don’t need if you own a small business, instead of settling for a costly downtown office space, consider something different, so commercial shed options, industrial areas that are a bit away from the downtown area, and similar. Even though they may seem like they don’t fit your small business since they aren’t “fancy” enough, consider, well, firstly the financial aspect, but also how much more freedom and customization you have when you opt for an alternative option. Make these things your advantages!

Be Flexible

This is extremely important! If you are a small business owner and are looking for ways to cut down your expenses – being picky really isn’t a way to go. Sure, you might not find a place to run your business that is your dream space. Still, you can most definitely adapt and make something out of it that will only push your boundaries of creativity and adaptability – and save money while doing so.

Does Your Rent Cover your Energy, Water, and Heating Expenses?

If you have already closed a deal with a landlord, and it just so happens that your rent depends on how you use your appliances, heating, and water – you have a lot of different ways to lower the costs of renting the place! Doing so comes down to being smart about utilizing everything that you need and assessing what you really don’t need. So, let’s talk about that in more detail.

Turn to the Usage of a Smart Thermostat 

Programmable and smart thermostats are a great way for you to reduce costs without compromising comfort – we all understand the importance of comfort regarding employee’s productivity and your customer’s satisfaction. So, if you opt for a programmable thermostat, you aren’t going to need to waste your money on heating the entire place throughout the whole day for no reason. Instead, you will be able to customize your facility’s climate control schedule in such a manner that it suits your needs.

Power Down Nonessential Equipment

This is also very important, even though you might think that everything you are using is essential and can’t be compromised. We assure you – there are always things that you don’t need, especially when it comes to reducing electricity costs. For instance, personal computer workstations comprise the single biggest nonessential energy suck, so make sure everyone powers theirs down before heading out, as well as during the breaks and in similar situations. 

Shut off overhead and desk lights too, and try not to turn them on during daylight. When the shift is off, be sure to leave clear instructions for building cleaning crews to do so when they’re done. Things like these make a huge difference. Once you and your team get in the habit of following through the new regime, it’s painfully easy to save up money this way.

How to Lower Costs of Rent as a Small Business Owner

To Wrap Things Up

In the end – it all comes down to sustainability and taking time for careful organization of how you approach different expenses that someone would otherwise not even think about. These are the variables that can greatly help you in order to tackle the hardships of the first year as a small business owner, so buckle up, be sure to approach all your expenses carefully, and you will pull through! Good luck!