Being a parent and an entrepreneur is no easy feat. But you know this already. You’ve done the work and are ready to take the next step: launch your first family business. If successful, this can become your legacy for future generations, so every move has strong implications.

We’re here to support your efforts and provide a few tips and guidance on how to choose the first commercial space for your family business.

Budgeting and Financial Planning

First, you have to figure out the cost per month you can afford. If you’ll rent (which is 90% of the cases), the rent price is only the base. Add to it the operating expenses, which include common area maintenance, property taxes, and insurance (premiums vary depending on the business’s core activity). 

Financial projections must also account for future rent increases. Whether rent will go up is a matter of “when” and not “if,” so it’s best to be prepared. Check your rental contract and your state’s law to get a better understanding of this projection in the long term.

Lastly, add maintenance and cleaning costs, and you should have a pretty good idea of the monthly costs for the commercial space. Now, you can start looking for loans to fund your endeavor. 

When to Consult a Real Estate Lawyer

Before signing anything binding in the long term. 

You need a commercial real estate lawyer to review contracts or letters of intent to ensure they include favorable clauses, such as an adequate due diligence period and confirmation of the landlord’s delivery condition.

They’ll also be able to tell you if a commercial lease is heavily weighted in favor of the landlord (most are) and how to negotiate personal guarantees, relocation clauses, and maintenance responsibilities.

Workspace Design and Functionality

The layout of any commercial space differs from business to business, but one thing is for sure: your space needs will evolve. So, the best thing you can do for your future self is find a property with a flexible layout. 

For example, use non-load-bearing walls for internal offices now. As your business grows, you can remove the walls to create open space.

In the beginning, though, make sure you can segment the space to create clear segregation of duties and environments. If you’ll have children on-site, designate a private, non-commercial area for family needs (a break room, a small office for administrative tasks, or a supervised quiet area) that is separate from customer-facing or high-traffic operational zones.

Operational Efficiency and Location

Location is one of the most important factors for your future business. You want the space to be easy to reach for your family, but also in the middle of an area with heavy foot traffic (if you’re opening a brick-and-mortar type of business). 

Ensure the property has adequate, accessible parking for employees, customers, and family members. If you deal with inventory, confirm that the loading docks, drive-in doors, and receiving areas can accommodate your operational needs efficiently without compromising safety.

Before signing, confirm the property’s zoning permits your specific business. Never assume a use is permitted; get written confirmation from the landlord and/or municipality.

Wrap Up

Be patient and never settle. This space may become the original location of a thriving brand that will span generations. Make sure it checks all the right boxes, so you and the ones working here after you will be proud to call it “my family’s business.”