Every large city has an abundance of office space, and San Diego is no exception. Anyone who is planning to open a business here will first need to know how to shop for San Diego office furniture. One of the biggest traps that new companies encounter - especially if they are not yet well capitalized - is that they spend a huge portion of their budget on decorating their office or offices with furniture.
They might, for instance, invest in an expensive conference table with matching chairs or an executive suite complete with a credenza, bookshelves, and leather upholstered chairs. But unless the company is turning a profit those expenses for furniture that simply sits there and collects dust can be costly.
Because most small businesses use a bank loan, credit card, or line of credit in order to fund their initial expenses, buying furniture right away can mean paying much more for it than it is actually worth. Before accepting furniture store credit and financing or charging that new desk to a convenient credit card, first sit down and calculate how much interest you will be paying on the debt before you manage to pay the whole thing off free and clear.
Let's take an example of a $300 chair. If you buy it for cash, it will cost $300 plus sales tax. If you are making a 20 percent profit on the goods and services that you sell, that means that you will need to make at least $1,500 in gross sales to raise the $300 in net profits to pay for it. Add sales tax and then tack on a high interest rate from your credit card or business loan, and the total could go much higher. Soon you are over your head because of a simple chair.
A better and smarter approach is to buy used, good quality furniture at first. Or buy mediocre quality furniture and paint or refinish it inexpensively to make it look like new. Use that - at very little cost to your business - until you make enough sales to justify investing in better office furniture. The decision to start slowly and shop for bargains instead of blowing your whole budget before you even launch the business could mean the difference between profitable success and a fast bankruptcy, especially in today's economy.
About the Author:
Vernon Haynes makes custom furniture in
San Diego. Office furniture and cubicles are most popular among his Southern California clients.
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185
Date Published :
Apr 7 2009