March 9, 2006
the 1990’s
Thanks to Fred Wilson for the inspiration:
So forgive me if I flip out the next time I see a company bring a huge long term lease to the Board for approval. It’s not a good thing to be in the bricks and mortar business. Keep your rents low. Sign short term leases and get clauses that let you out. Don’t let your leases bring you down. It’s happened to many people, don’t let it happen to you.
Yep. A lot of people don’t think a business is ‘Real’ till they start owing serious money to the real estate boys etc.
You won’t believe how many online businesses I know spend more on offline efforts than online efforts. It’s ridiculous.
Isn’t it the sad lure of “prestige”? I think Paul Graham said a few sharp words on that one.
In the San Francisco bay area it’s been damned difficult to find any landlord willing to offer a lease of less than five (or ten) years on any decent commercial space. When I was looking for space in 2001 we had landlords demanding 10 year leases, first year paid in advance, and stock warrants since we were pre-IPO. It’s calmned down a bit since then, but if the landlord suspects you’re going to make serious bank they’re going to try and get a cut.
My suggestion: Leave the bay area — or any overpriced metropolis — before starting your business.
Sounds like good advice to me, Jet…