• Marketplace
  • Resources
  • Business Directory
  • Events
  • Advertise
  • Brand Pulse
  • Publish a Press Release
  • Get the Newsletter
  • Contact
  • About Us
The FUTURE OF WORK® since 2003
Allwork.Space
No Result
View All Result
Subscribe
  • More
    • Columnists
      • Dr. Gleb Tsipursky – The Office Whisperer
      • Nirit Cohen – WorkFutures
      • Angela Howard – Culture Expert
      • Drew Jones – Design & Innovation
      • Jonathan Price – CRE & Flex Expert
    • Get the Newsletter
    • Events
    • Advertise With Us
    • Publish a Press Release
    • Brand PulseNew
    • Partner Portal
  • Latest News
  • Business
  • Leadership
  • Work-life
  • Career Growth
  • Tech
  • Design
  • Workforce
  • Coworking
  • CRE
  • Podcast
  • More
    • Columnists
      • Dr. Gleb Tsipursky – The Office Whisperer
      • Nirit Cohen – WorkFutures
      • Angela Howard – Culture Expert
      • Drew Jones – Design & Innovation
      • Jonathan Price – CRE & Flex Expert
    • Get the Newsletter
    • Events
    • Advertise With Us
    • Publish a Press Release
    • Brand PulseNew
    • Partner Portal
  • Latest News
  • Business
  • Leadership
  • Work-life
  • Career Growth
  • Tech
  • Design
  • Workforce
  • Coworking
  • CRE
  • Podcast
No Result
View All Result
Subscribe
Allwork.Space
No Result
View All Result
Advertisements
Kube Suite - TL
Home Business

Premier Business Centers’ Jeff Reinstein Shares Insights on How To Best Raise Capital

Cecilia Amador de San JosébyCecilia Amador de San José
January 25, 2017
in Business
Reading Time: 3 mins read
A A
workspace raise capital

More stories for you

Protected: Product Roundup PREVIEW

3 hours ago
Why the Best Future-of-Work Strategy Is a Product Strategy

Why The Best Future-of-Work Strategy Is A Product Strategy

11 hours ago
Indeed Executive Says This Is What Your Future Workforce Will Really Look Like

Indeed Executive Says This Is What Your Future Workforce Will Really Look Like

12 hours ago
Microsoft Laying Off Around 3% Of Workforce To Funnel More Money Into AI

Microsoft Laying Off Around 3% Of Workforce To Funnel More Money Into AI

21 hours ago

Jeff Reinstein, CEO of Premier Business Centers and Finance Expert, shares tips on how flexible workspace operators can raise capital, and which method he prefers best and why.

This article is part of our best practices series.

Advertisements
Nexudus - Tech Stack Lovers

In your experience, how should workspace operators start the process of raising capital?

If an operator is looking to acquire an existing business centre or flexible workspace, I would ask the sellers if they are willing to carry back a note. This will usually result in a good interest rate for the seller on the sale price, while also allowing the buyer to avoid the hassle of raising money. This approach also generally means a lower interest rate than the buyer would have to pay if they were to borrow money.

In terms of opening a new location, typically now landlords will provide most of the start-up capital for a new workspace center other than working capital.

Advertisements
Maximize Flexible Space Revenue

How often should workspace operators seek to obtain external capital?

I think that the best time to try and raise money is when you don’t need it. I aim to always keep my eyes open for potential investors or opportunities to raise capital. However, I also would recommend to workspace operators to work with their bank to obtain a line of credit. Here’s how I would do it: I would obtain the line of credit, then I would borrow that money and pay it back several times during the year to prove to the bank that you are, indeed, ‘creditworthy’.

The more time you borrow the money and pay it back, the easier it gets to increase your credit line and  borrow money when you need it.

How can workspace operators focus on raising capital internally?

At Premier, we set aside a portion of our cash flow for acquisitions. This allows us to take advantage of opportunities without having to raise capital.

What are some rules of thumb to follow when raising capital?

The two main ways to raise money are either through debt or equity.

Advertisements
Nexudus - Tech Stack Lovers

Debt generally has a lower interest rate, but it will usually require that you make a minimum monthly payment. During difficult times, it might not be possible for operators to make the payment, which could result in losing your workspace business or at least losing control of it.

If you sell an equity stake for your business in order to raise capital, there may be a preferred return that either needs to be paid or accrues, and must be paid when there is excess cash flow. Equity is considered to be a more expensive alternative to debt, given that one needs to give up part of the ownership and the possibility to fully control the business.

Additionally, there are some hybrid options that include a combination of debt and equity.

Which method would you recommend?

I am personally very debt averse since my experience has been that during difficult times companies that are saddled with too much debt generally fail. As a result, we at Premier do not have any third party debt.

What are some ways to minimize the risk associated with raising capital?

For this, I would recommend workspace operators hire someone that they can trust to help them navigate through the different options. It’s important for operators to understand the pros, the cons, and the potential risks associated with each alternative.

Advertisements
Subscribe to the Future of Work Newsletter
Share5Tweet3Share1
Cecilia Amador de San José

Cecilia Amador de San José

Cecilia is an experienced writer and editor with a background in strategic communications. She has written articles for Allwork.Space on several topics, including the future of work, flexible workspaces, employee wellness., and more.

Other Stories Recommended For You

Contributions

Protected: Product Roundup PREVIEW

byAllwork.Space Staff
3 hours ago

Summary bullet point Summary bullet point Summary bullet point Roundup Introduction This section will serve as an SEO-optimized introduction to...

Read more
Why the Best Future-of-Work Strategy Is a Product Strategy

Why The Best Future-of-Work Strategy Is A Product Strategy

11 hours ago
Indeed Executive Says This Is What Your Future Workforce Will Really Look Like

Indeed Executive Says This Is What Your Future Workforce Will Really Look Like

12 hours ago
Microsoft Laying Off Around 3% Of Workforce To Funnel More Money Into AI

Microsoft Laying Off Around 3% Of Workforce To Funnel More Money Into AI

21 hours ago
Advertisements
Envoy - Workplace ROI
Advertisements
Nexudus - Tech Stack Lovers

Unlock your competitive edge in tomorrow's workplace.

Join a community of forward-thinking professionals who get exclusive access to the latest news, trends, and innovations that are shaping the future of work.

©2024 Allwork.Space News Corporation. All Rights Reserved.

Exploring the Future Of Work® since 2003.

Advertise   Newsletters   Privacy Policy   Terms Of Use   About Us   Contact   Submit a Press Release   Brand Pulse   Podcast   Events   

No Result
View All Result
  • Home
  • Latest News
  • Topics
    • Business
    • Leadership
    • Work-life
    • Workforce
    • Career Growth
    • Design
    • Tech
    • Coworking
    • Marketing
    • CRE
  • Podcast
  • Events
  • About Us
  • Solutions
    • Advertise | Media Kit
    • Publish a Press Release
    • Brand Pulse
Subscribe

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00