Not all businesses require a storefront but every business does require an office, even those run by one or two people who conduct the majority of their business either online or at customers locations. While there are many arguments made in favor of renting an office space, usually by real estate agents handling the rent, they often ignore the three main reasons that renting an office space is a bad idea.
First of all is the cost. An office in the home can be carved out of your current digs and except perhaps the cost of an extra phone or fax line, you already have the space available. Second is the need to travel to work everyday. While a home office can be stingy with space, there is no daily commute. Lastly, when you are out visiting customers, potential business will not be turned away when they arrive at your rented office and find no one there.
Unless your business requires a showroom or is retail based, you probably have no real reason when starting out to consider renting office space. Even with a few employees, the work can be done at home through telecommuting and many people enjoy that type of arrangement. The costs of office space goes beyond the monthly rent as you will be paying utilities, liability insurance and security. Moving all of your equipment into the new space will take time and money and then there is the subject of the rental terms.
Few office spaces are rented on a month to month contract and regardless of the condition of your business finances the rent will be due. While it may give your ego a boost to have your own office, it can also put a huge dent in your wallet if the business does not require a separate space. Working from your home has many pitfalls such as constant interruptions by family and friends as well as the need to keep up with the laundry and housework.
It takes a large amount of self discipline to realize you are at work when working in your home office. However, being able to get up in the morning, dress for work and walk across the hall to your home office can save gas and frustration from the daily commute. If all of your work can be done from home, you may even consider whether you really need a vehicle and its monthly payment and insurance costs. If another member of the household has a vehicle you can use when needed, the second car would only be necessary if driving to the rented office space.
When you hang a shingle over a door people assume you are open for business. In the middle of the day if you are unavailable they may assume you went out of business. However, being accessible by phone, fax or email your customers know how to reach you and when you are working.
Smaller businesses or home-based companies can often profit from exclusive office space. The space helps to separate home from professional life and can make the company appear more serious and professional. Some businesses or companies, however, will find that renting office space is very expensive and cannot be justified when compared to the revenue that the company is generating. These companies will find serviced offices as a great alternative to renting conventional office space. A serviced office is office space that is shared by several businesses or professionals. These offices come fully furnished and equipped with business amenities such as telephones and are literally a ready-made solution for saving money and time, especially with start-up businesses. Serviced offices can also provide a marketing solution. By sharing your office space with like-minded and complementary businesses, you can in turn attract clients that may not have heard of you. For example, a freelance writing company may profit from sharing an office with a publishing firm. When searching for a serviced office, keep the location in mind. If your business would benefit from a downtown location, spend the extra money and get an office downtown. If location doesn’t matter to the business, save a little money and get an office in an out-of-the-way area. Also, be sure to review the contract that you sign with the serviced office operator. Most serviced offices offer a minimum three month lease; this is much better than renting office space for a ten year term. Make sure that the contract is helping your business by saving it some money. If you’re not sure where to start when looking for serviced offices, go to Instant Offices’ website. Instant Offices can help you to find the best serviced office anywhere in the world for your business.
Both Obinna Heche & Kausik Dutta are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.