This is a real estate term, however it can be applied to any
business or nonprofit to save or generate revenue. It can be applied to running a business on a shoe string budget, use of space by nonprofits, or to larger businesses with a big heart for the community.
Several years ago a member of our team observed six
businesses operating comfortably out of a 14x30 foot space. They offered
compatible services; therefore they were not competing for the same customers.
By sharing space, they cut their operational expenses substantially. Another example of highest and best is wise allocation of existing space. If your business or organziation has rentable space, consider reconfiguring use of space to make best use of resources.
Two members of our team observed an free standing building suitable for community groups to rent. The space is currently used by two or three groups, a maximum of eight hours a week. The nonprofit makes an office space available for a 1 or 2 person organization. To obtain highest and best use of this resource, it would be wise for them to move the office space into their main building. This would allow them great flexiblility in renting the free standing space for additional revenue.
Highest and best use does not have to be motivated by revenue. One local business man had 14,000 square feet sitting empty. He asked God what he should do with it. The space is now home to over 30 nonprofit organizations who could not afford to pay for office space. He charges $1.00 a year for rent. Not only has he reconfigured space, he has continued to allocate more space. He provides conference rooms, a shared reception area, a recording studio, cafeteria, exercise gym and more all at no cost. The business side had fourished, and the nonprofit side is an incredible resource for the community. This post completes our series on financial concepts. Our next post will address trigger point finance.
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