38 . Glasgow Business January/February 2013


SUCCESS STORIES


FAMOUS GARAGE STARTUPS


1


Amazon Jeff Bezos founded Amazon. com in 1994 as an online


bookstore, running it out of his garage in Washington. He sold his first book in July 1995 and today it’s the world’s largest online retailer.


2


Apple Steve Jobs, 21, and Steve Wozniak, 26, started Apple


Computers in 1976 by hand-building 50 Apple I Computers in Wozniak’s garage in California for a local retailer – the rest is history.


3


Google Stanford students Larry Page and Sergey Brin started what’s


now known as Google from a friend’s garage in 1998. As the project was interfering with their studies, the pair offered it to Excite for $1 million. Excite rejected the offer and now Google is the most trafficked site in the world.


4


Harley Davidson In 1901, 21-year-old William Harley and his friend, Arthur


Davidson, started to develop a small engine to power a bicycle out of their friend’s small wooden shed in Milwaukee, Wisconsin. They officially founded Harley-Davidson in 1903 and it’s arguably the most famous motorcycle brand in the world.


5


Mattel Global toy-maker Mattel originally started out as


picture frame company in 1945 out of a garage in Southern California. So as to not waste materials, founders Harold “Matt” Matson and Elliot Handler started using wooden off cuts to create dollhouses – and they sold better than their frames to they decided to focus on toys.


6


Yankee Candle Company Michael Kittredge, 16, made his first scented candle out


of melted crayons as a gift for his mother in 1969. His neighbours liked his candles and he started producing them from his parents’ garage. He called his company the Yankee Candle Company and four years later outgrew the garage and moved to an old mill in Holyoke, Massachusetts. Today, it’s the largest manufacturer of scented candles in the US.


of office space, some companies have reduced their needs to about 70-80 square feet per person. But there are extra


“Alternatively,


costs to consider on top of the square foot rental, such as ‘service costs’, particularly in multi-tenant properties to cover lighting, cleaning, security, insurance and repair work – you don’t want to move in and be suddenly stung for a shared bill for a new roof, so a property survey may be called for if you suspect that the fabric of the building is not in a good condition. Over the last few years leases have become


“Over the past years leases have become more small-business friendly, introducing more flexibility”


tenants could shop around and use the comparison of what is out in the market to renegotiate a new deal with their existing landlord. Tis could mean a reduced rent, a


rent-free period or other agreements such as a capped service charge to reduce the cost of occupancy. “What’s happening today is that a large


more small-business friendly, introducing more flexibility such as shorter lease terms, around 10 years, and offering five or three-year break options, subject to due notice being served by the tenant. Ewan Cameron, Glasgow Regional


Managing Partner of commercial property consultants Ryden, believes it’s a good time to look for deals on office space, even with your existing landlord if you already have a lease on office space. He explained: “In the current climate, many


landlords have been siting on property that has been empty for some time so they are keen to offer atractive deals – so it’s a very good time for a tenant to be thinking of trading up to a higher quality property.


number of tenants are effectively window shopping – maybe deciding to move to higher quality premises – but a lot are ultimately deciding to stay where they are and renegotiate the rent with their landlords.” Tis is a sensible position to take, as there


are costs to moving, such as relocation expenses, exit costs from the leases, such as repairing the property to its original condition, as well as general disruption to the business. “If you have other property options then


this gives you or your property consultant more bargaining power when achieving the best deal from the landlord – a cocktail of rental level and incentives, the extent of which will vary dependent on the flexibility in the lease,” added Ewan. It’s a good investment in time and effort, as


every pound saved on your property costs goes straight to your botom line.


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