Bloomberg advises growing tech firms to under-lease office space

In a TechCrunch Web series discussing the founding of his eponymous company, Mayor Michael Bloomberg reminisced on his own office leasing strategy and dished out advice to growing tech companies on how to figure out how much office space to take.

Bloomberg acknowledged that many growing firms have a tough time striking the balance between taking enough space for the company to expand without overspending on rent.

“My advice to an entrepreneur is don’t overextend,” Bloomberg said. “Not having enough space is a nice problem to have — it’s a very bad problem to have too much.”

As the founder of Bloomberg LP, the mayor said he always erred on the side of too little office space. When he started out on two-thirds of a floor in a Park Avenue office building, Bloomberg found a creative way to expand within the space. When the team became to big for the space, Bloomberg went into the offices one Saturday and used a saw to shorten existing desks, allowing room for several more.

Meanwhile, Bloomberg said the government’s strategy to land more tech companies and encourage startup growth within the city is to focus on drawing the “intellectual capital” tech firms rely upon.

“The business strategy,” he said, “is to invest in parks and cultural institutions and better public schools and lower crime to get the best and brightest to want to live here.” [TechCrunch]