Why Your Startup Doesn't Need To Pay Office Rent

Posted on 18/12/2018

  Starting a new business can prove difficult for anyone, especially when money is tight. For a start-up, you need a good idea that can translate into a profit. Once you begin your company, you need to promote and market it properly to draw new business. These days, companies open and then close all too quickly due to misspent funds. However, that doesn't mean that you won't succeed as an entrepreneur with a start-up company. You just have to possess business knowhow, such as how and where to spend your money. In particularly, you need to figure out where you will work and whether or not an office fits your needs.

Do You Need an Office to Thrive?

As an entrepreneur, you may wonder if your new company needs its own office space to thrive. A physical address, after all, gives you a certain type of presence and authority that your competitors may already have. All sorts of big name brands own headquarters, sometimes multiple locations spread out across the nation. While you may have similar dreams for your own start-up business, take heed before you begin looking for empty office space in your neighborhood. Truthfully, not every start-up will require an office. You may find that a physical space becomes feasible later on, but in the beginning, you may want to hold off. One factor that dictates the need for an office relates to the type of business that you run. If you produce many physical products, then obviously you will need a place to store these. However, even in that case, you won't need an office. You could rent out storage space or even rent out part of a warehouse to store the extra products until you sell them. You can also keep these products in your own residence if size permits and then sell them right from your company's website. In all of those instances, you would still remain in charge of the entire shipping process. Generally, you will find that in the early stages of your business that an office probably will not suit you. One disadvantage of renting an office relates to the cost. You will pump extra money into an expenditure that doesn't necessarily help your business. In fact, the lost profits could actually harm your start-up. After all, the money that you put into office space could go into marketing, creating new products, hiring new staff members, paying for your website or various other avenues of funding. As mentioned, lack of money often leads to the downfall of a start-up. Your company doesn't have to go this route, but you will need to spend your funds wisely to ensure success.

Other Places to Work in the Early Days of Your Start-up

Instead of an office space, consider Working from home in the beginning of your start-up’s career. You can probably do most of your work remotely through a computer and phone contact with others. Eventually, you will begin to hire staff members to assist you with various jobs. These should include information technology (IT) experts, an accountant, a salesperson, public relations or PR, and maybe an assistant or two. However, just because you have staff doesn't mean that you need a physical office. You can utilize all sorts of virtual meeting spaces and services online that allow you to do your work and correspond with your coworkers without being in the same room or even the same building. You can use teleconferences or video conferencing to communicate with your team as well. Set up individual email addresses for each staff member and volley off messages to each other online. These options may cost you money in some instances, but generally not as much as renting an office will.

Getting Your Mail to You No Matter Where You Work

You don't have to worry about where your mail will go once you do start to receive it. If you do work from home, you can always have any start-up letters and parcels forwarded to your home address. Similarly, you can have this mail sent to a PO Box of your choosing. You can then visit the box whenever you wish and retrieve your mail. Naturally, signing up with a PO Box will likely cost you money, so you may want to hold off on this step until your business has more regular income flowing in. Other mail forwarding services will also charge money, but this can be a good investment if you want the authority of a business address. By choosing to get your mail delivered to your home address, you don't have to spend one extra cent.

Choosing the Right Office Space Once You Can Afford It

If you do find that you eventually want an office space, ensure that you can afford the monthly costs that go with it. Before you pick a space, determine if you really do need it. If your business begins to grow and you have more employees, then you should consider an office. If you have achieved success and your company no longer flounders for money, then an office could suit you. Perform research for the most affordable leasing space in your area. Some offices come furnished. These allow you to enjoy amenities like phone service, mail service, high-speed wireless Internet, and conferencing equipment as a part of your monthly bill and not as extra service charges. You will also not have to worry about safety, as security will patrol the building. A kitchen space allows you and your employees to store food and relax during breaks. If you find that an office space doesn't work for your start-up, do not fear. Many of these offices allow for flexible leases that may last for three months at the shortest and 12 months at the longest. If you signed up for a 12-month lease, you can possibly lessen the length to get out of the agreement if it doesn't help your business. However, this may differ depending on the office space that you ultimately decide to work with. Most people who work with and invest in a start-up business do know that the company has just begun and wishes to improve in the future. No one should begrudge you for not having an office. Instead, you should focus on improving your start-up and having solid products that will appeal to customers. You should concern yourself with having an online presence such as your own website and social media. These measures will help further your business.
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