5 Unforeseen Costs of Growing a Small Business

Your lease period versus the potential growth of your small business.

Some companies seem to grow quickly overnight while others thrive for decades with slow expansion. Consider your anticipated rate of growth when you sign-up for a lease and negotiate potential out-clauses, protections to maintain the space, or expansion options into the same or neighboring locations for the future.

Whether utility and maintenance costs are included in your lease.

From electricity to ceiling repairs, or property taxes to HVAC units, costs and maintenance responsibilities included in leases can vary. This also means that your energy costs will vary from month to month! As a tenant operating a small business, it’s good to know if your landlord is using a variable-rate or a fixed-rate energy plan. If your landlord has a fixed-rate plan, you’ll have a better understanding of and ability to budget for your monthly expenses.

For a better understanding of leases and what each business owner has to pay for under each, including energy costs, here is a list of common leases:

Which costs are the responsibility of the small business owner for each lease type?