Page 115 - Cityview_May_June_2014

Office Space,

Furnishings,

and Equipment

A

sk any business consul- To minimize your burn-rate denomina-

tant why so many start- tor and keep your business afloat as long
ups fail, and he or she as you can without another infusion of

will tell you that it’s most often because cash, do your cost-cutting homework

of under-capitalization: the entrepre- and research before you take that en-
neur does not realize how much money trepreneurial leap. The less you spend

operating the business will take before it securing space and buying furnishings
begins to show a profit.
and equipment, the longer it will take to

exhaust your initial funding.
The other side of the under-capital- If you’ve read
Part One
ization coin is failing to control costs. Aleen Swofford, President of Swofford
of Cityview’s guide for the
Monthly overhead—including your financial, says, “Someone comes to me
lease—is known as your burn rate. Any and wants that space at Turkey Creek. Small Business Creator
(November/December 2013),
financial projection should look at how And they’re ready to sign an expensive,
long your business can last at its current extended lease to get it. I ask them, ‘Do you know that you need to do
financial planning, form a busi-
burn rate before you must receive addi- you have deep pockets?’ Because even if ness plan, and decide how to

tional financing or revenue. Ideally you you have a great idea, the revenue is not structure your company before
should begin with a year or more of cash going arrive soon enough to meet your the business can start running.

reserves, but for some ventures you may financial commitments.”
need more than that. Jerry Christenson, But now that you’ve officially

president and owner of Transworld Finding a Space—As with many facets
formed your business, signed

Business Advisors of East Tennessee, of starting a business, the ideal space your partnership agreements,
tells clients he advises two years of depends on the nature of your enterprise. and planned for the future, are

working capital in their business plan: for some, the location can be the biggest you really ready to go? Actually,
“Inevitably, startup costs will be higher factor in whether the new business suc- there are a few more tasks you

than you expect.”
ceeds or fails.
should take care of before you
open your doors. first, you’ll

need some actual doors to open!

Every business has to operate
somewhere, so read on for tips

and advice on how to find the
best space for your business—

and find all the furnishings and

equipment you’ll need to keep
the business running smoothly.

Next, you’ll need to take steps

to protect yourself—not just

physically, but also intellectually.
Make sure you obtain the proper

patents, trademarks, and more to
ensure that your great ideas can

start making you money—instead
of your competition.

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