How to Choose the Right Facility for Your Growing Business
Your business is expanding, and suddenly your current space feels like a straitjacket. You need room to breathe, grow, and operate efficiently. It’s time to move to a bigger space, but where do you even start? Do you rent or build? How much space do you actually need? What will happen to your operating costs?
We are here to answer those questions and more. Read on to learn how to choose the right facility for your growing business.
Start With Your Actual Space Needs
Many business owners guess at their square footage requirements and end up regretting it. Don’t be that person. Instead, follow these steps:
- Calculate your current inventory storage needs.
- Project your growth over the next three to five years.
- Account for employee workspace and common areas.
- Factor in specialized zones like loading docks or conference rooms.
Once you address these things, you know what type of space will sustain your current operations and provide plenty of room to grow into.
Location Matters More Than You Think
The cheapest facility in town might cost you more in the long run if it’s in the wrong spot. Consider these critical factors:
- proximity to your customer base and major transportation routes
- access to qualified labor in the surrounding area
- local zoning regulations and future development plans
- quality of infrastructure like roads, utilities, and Internet connectivity
A facility that’s 20 percent more expensive but cuts your logistics costs in half makes smarter financial sense.
Weigh the Rent vs. Build Decision
This choice shapes your financial future, so think it through carefully. Renting offers flexibility, requires less upfront capital, shifts maintenance responsibilities to the landlord, and lets you test a location before committing long-term. Conversely, building gives you complete control over design, creates a valuable asset on your balance sheet, allows customization for your specific operations, and eliminates rent increases over time. Plus, since commercial steel buildings are versatile and affordable to build, paying for construction doesn’t have to put a huge dent in your finances.
Don’t Overlook Operating Costs
Once you move into your space, whether you rent or own, you must account for operating costs. These include the following and more:
- utilities
- maintenance requirements
- property taxes (if applicable)
- insurance premiums
Think About Scalability
Your space needs have already changed, and they will change again. Plan accordingly. Does the facility you want allow room for expansion on the same property? If renting, can you sublease excess space if you overestimate initially? Will the infrastructure support additional equipment or staff? These questions matter when you’re planning three years ahead.
The Bottom Line
Learning how to choose the right facility for your growing business requires balancing immediate needs against future growth. Take your time, run the numbers thoroughly, and visit multiple options before deciding. The right facility is a competitive advantage that fuels your growth for years to come.
