Driven by the return to in-person gatherings, new data shows venture-backed startups are renting more office space.
While legacy companies may stay in a single office building for decades, quick-growing tech startups typically require more flexibility and to be able to change their space as they expand. In the excitement of expansion or relocation, there are logistical pitfalls that many can fall victim to – whether it’s keeping sensitive data safely stored during move, or finding temporary storage if there is a gap in lease terms.
As companies prioritise being nimble, finding a partner that can handle every aspect of logistics and storage during a move can be the difference between a seamless transition or months of stress.
We sat down with FlexSpace Logistics’ business leader Lucas Koren to uncover best practices for tech startups moving into a new workspace or facility.
Can you tell us a little bit about yourself, FlexSpace Logistics, and what you do at the company?
LK: Gladly, my name is Lucas Koren, Business Leader for FlexSpace Logistics. My background is in economics and finance, with much of my professional experience in the startup ecosystem. I have been building FlexSpace as Canada’s leading storage and logistics expert for three years now, alongside some of the storage and logistic industries’ most prominent leaders.
When should tech startups start planning for their move? What are the top 3 considerations?
LK: A startup should start planning their move about six months before they need the facility, whether that is moving to a new office, warehouse, or other space. The three main considerations are:
- Timing: Searching earlier the better, otherwise you hold no leverage, overpaying and over-committing because the options are scarce. This will give you enough time to vet the facilities to make sure they meet your specific needs.
- Cost and Term Length: Explore different options and get multiple rates, having an idea of what the rent in your preferred area is will give you negotiating strength and try to get a location that is flexible on term. At FlexSpace Logistics, we provide our clients with multiple quotes to solutions that meet their needs, allowing them to be in the driver seat and make an informed decision on which solution to choose.
- Location: Location matters. The more sought after an area, the less availability there is and the higher the price. Understanding this will save you a lot of time and help you plan strategy accordingly.
How can a storage company like FlexSpace Logistics help tech startups moving into a new office space or facility?
LK: FlexSpace supports businesses of all sizes, in all industries across Canada. We facilitate moves daily, and have a steady track record of ensuring clients have a reliable, cost-efficient move.
When a business relocates, it requires a deep understanding of both the products being moved and the end location. This includes questions such as, “How products are offloaded at the given facility? How much spaceb is in the parking lot? Which trucks are best for your type of move?” Having expertise saves our clients a lot of trouble down the road, avoiding mistakes.
What specific challenges can tech startups expect when relocating, and how would storage partners like FlexSpace Logistics address them?
LK: Lack of knowledge is a huge risk to making a strategic decision on your move. Storage and logistics is complex, there are a ton of moving parts and things can go wrong at every single stage, sometimes out of your control. Signing leases that are too long in term, paying rates that are well above market rent, an unreliable moving partner, lack of communication are all challenges businesses face.
As FlexSpace has connections to logistics partners and warehouses across the country, by partnering with us, we can work hand-in-hand with the customer to quickly address and solve any unexpected issues.
Could you provide examples of services or solutions that a storage partner might offer to tech startups during relocation?
LK: A tech startup operates a lean business but still has a ton of product – from hardware to furniture – and to move fragile product reliably from one place to the other is difficult. As tech businesses move back to office, we are seeing an increase in our requests to move desktop computers, furniture, hardrives and more, safely to the next destination.
Flexibility is crucial for startups. How flexible are your storage solutions in accommodating the unique needs and timelines of tech startups?
LK: Some of the tech startups we serve use us completely for self-storage or other smaller warehousing types. Through our storage solutions we offer month to month contracts, so if your needs grow or decrease, we can make the adjustments with minimal commitment. Our goal is to serve our clients the right way, at their own speed.
Beyond the physical storage aspect, how does your company support tech startups in terms of logistics and planning during a relocation process?
LK: FlexSpace Logistics will understand the needs of the entire project and manage it from start to finish for you, so all you have to do is explain your goals and we’ll put everything in place to take it from A to B. This is what we do. Our business is also unique in the sense that we have multiple sister companies under the same umbrella through our parent company StorageVault Canada (TSX:SVI) to be able to internally cover all needs for our clients, such as records and data management, portable storage, and moving.
Can you discuss any success stories or notable experiences where FlexSpace Logistics significantly benefited a tech startup during relocation or expansion?
LK: We work with a number of startups in the tech space, whether it be e-commerce brands selling physical products to SaaS companies looking for office space, to apps looking to store their data.
Recently, we worked with a e-commerce clothing brand that was growing rapidly out in Australia and wanted to expand to Canada .We provided options in Vancouver, Calgary and landed on a warehouse we had in Toronto, ON. We moved them over to our facility and integrated their e-commerce site to our Inventory Management System, allowing us to process all of their orders as soon as they came in. This operation was and still is very successful and something we continue to do today. Merging storage and the power of technology is something our business is very proud of managing effectively for our clients.
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