For a long time, many entrepreneurs believed they needed a physical piece of corporate real estate before they were a real business owner.
It was common to believe that unless you were spending cash on an office, a warehouse, or a store, you were just a freelancer, or someone with a side gig. That’s not the case today.
The reality is that around 69% of US entrepreneurs start their companies from home.
When you’re launching your company for the first time, and you’re low on budget, working from your spare bedroom or garage makes a lot of sense. It’s cheaper, more convenient (you don’t have to drive anywhere), and comfortable too.
But working from home also means you’re dealing with things like poor work life balance, distractions, and an inability to “switch off”.
Do you really need a business office?
The Benefits of Having an Office
Owning your own piece of corporate real-estate does have its benefits.
First, it looks good. If you need to meet with another professional or client about something, there’s nothing quite like having your own branded space.
Secondly, your office is a place where you and your colleagues can get together without video conferencing.
Some of the major benefits of having an office include:
1. Professional image. You can design the office according to your brand and use it to show people in your industry that you really mean business. A quality office is great for making a lasting impression, and it means that you’ll always have a space available for meetings.
2. Designated workspace. It’s hard to separate work from the rest of your life when you’re working from home. A designated office can help you to find the line between what you do at work and at home.
3. Room for growth. An office makes it easy to bring in new staff members and expand your company. As you evolve, you can interact with other professionals without having to get together over a video chat or do everything over the phone.
4. Fewer distractions. As comfortable as it is to work from home, you’re also dealing with things like the dog barking in the background or your kids running around after school. In your own office, you have absolutely nothing to take your attention away from work – except maybe social media.
5. In-person collaboration. These days, you don’t need an office to collaborate, thanks to cloud applications and video conferencing, but it can help to get together in person when working on complex projects.
The Downside to Having Your Own Office
The biggest downside anyone will give to buying an office space is the expense. Even if you don’t buy the building outright, you’re going to pay a small fortune to rent a piece of real estate. Some offices cost around $3,000 per month for just an office suite.
Compare that to the cost of having a virtual office, which is anywhere up to $100 per month, and it’s easy to see why so many people work from home these days.
There are even a ton of successful companies, like GitHub, who have absolutely no physical office.
So, is having an office worth it? Here are some of the downsides:
1. The expense. Aside from the cost of renting your office, you’ll also have other expenses to think about, such as the furniture costs, gas and electricity, water costs, and even cleaning expenses to keep your office in good condition.
2. The commute. Driving to work each day takes time, and it costs money. Depending on where your office is located, you may need to drive a fair distance before your workday is over.
3. Staffing limitations. If you want people to come and work in your office with you, then you’re going to be limited to people in your own locale. That means that you can’t access some of the best talent from all around the world. You could hire remote staff, but then your office basically becomes obsolete.
4. Maintenance. You have to constantly work on keeping your office in good condition, ensuring that it looks good for client meetings and updating the décor. You’re also responsible for keeping it secure, safe, and insured.
5. Environmental impact. The cost of getting to work, running an entire office, and asking all your employees to commute to the same space does have a negative impact on the environment, no matter how green your office design might be.
6. More risk. Your entire business could come grinding to a halt if you’re no longer able to attend your office due to a fire, natural disaster, or pandemic.
So, do you need an office? It all comes down to you and your own preferences. Consider these pros and cons and then make the decision that’s right for you.
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