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Over the years, my LLC has generated various amounts of income and has made it in many different ways. Although, up until this point, there had not been a need for office space.
Like most small businesses, we travel to to various work sites, leveraging the client’s resources and revolved our business around our computers, smart phones, and Staples.
Many articles online point to the fact that we should be able to continue to operate in this fashion.
Not today. I am going to tell you the significance of owning and operating out of your own work space — and how it immediately impacts all present and future business.
This is not hypothetical conjecture, it’s actual business experience here.
CON: You Need Office Space?
Do you really need all the space you’re paying for? Remember that space costs you more than the rent check; it also costs you in maintenance, repairs, cosmetic updating (new window displays, signage, etc.) utilities, property/liability insurance, etc.
Use the space you’re paying for, or quit paying for it, and save your business much-needed cash. You can switch to telecommuting, rent hotel meeting rooms, use a smaller space, and save money. The costs of running an office are pretty steep.
First there’s the lease, electricity, phone, internet,
Unless, your business is driving some serious revenue, these start-up expenses could be a deal-breaker… and I haven’t even mentioned inventory or employees!
Alternatives:
If you’re looking for alternatives… well, you could always upgrade your home office or find the perfect coffee shop.
Although, not the most cost-friendly option, co-working space and business centers are starting to catch on.
PRO: You Need Office Space!
No sooner that I escaped the “home-office” (A.K.A — the basement) and established a physical location, did I see an overnight difference!
1) Separation of Home & Work — Face it, when never really segregated from what’s going in the house. Kids are coming home early from school, some solicitor is ringing the doorbell, or your wife “volunteers” you to take her mother to the grocery store in the middle of the day.Plus, if I’m in the basement, more often than not, I am doing loads of laundry too! Argh!
2) Credibility/Respect/Professionalism —
a) Job-Seekers — No more meeting interviewees at coffee shops or borrowing the conference room of other friends’ businesses. “Yes, you would be working here if we extended you an offer!”
b) Networking — The mystery is over. Who is this guy? What was the name of his company? — Really want to know more? Here’s my business address, come see for yourself!
c) Business Owners / Insurance Brokers — No more dealing with fly-by-night insurance agents on your account. This guy is fully invested in establishing a long-term relationship with you.
d) Business Liaison from the Local Bank — “Nice. You seem to be on your way. Great space!” Would you mind if I used your space for Chamber of Commerce networking functions?
3) Management & Supervision —This is a results-driven business. You want me to motivate and encourage you to succeed. So, stop playing and let me show you about time management and directing your efforts toward revenue-generating activities. I see you.
In Closing
Those business cards with the P.O. Box? Trashed!
Networking and owning a 1000 sq. ft. office space in a beautiful area of town has led to other like-minded, entrepreneurs to gravitate to me as a viable resource for them. Why? Because I was just like them. I was laid-off too and struggled to make ends meet consulting, taking on tasks businesses have outsourced… and just “hustling”.
I never get complacent or afraid to extend my core business to get involved in a new business opportunity. Only a fool keeps his/her eggs in one basket.
Sure, I still work from home. Someone has to keep up with the laundry! 
2 Comments
Great Posting … You would not believe how many people I still encounter that have a PO box address on their cards…. more people need to read blogs like yours and learn how to look more professional at the fraction of the cost for office space.
As a photographer I was so used to working from home, but then I started doing more corporate photography and realized I needed a downtown Toronto office space. I wanted to be able to meet with clients and have a professional atmosphere. I started out with a virtual office solutin and eventually rented a shared office from a business office centre called Telsec.
Having a commercial space can make work seem more like “real work”, especially if you work on a schedule. I’ve found that it’s easier to slack off and goof around when you are working from. It’s not necessary to lease a super large office when you’re first starting out; all that you need is just a few work stations and you can save money by sharing a space with other businesses with a partition or divider in between. It’s also easier to hire employees if you are a space. Some neighborhoods may have zoning laws that prevent you from running a business from home.