In the past, businesses required an office space to operate. With the technology available today, however, some entrepreneurs no longer need a physical office to run a business.
Do you need a physical office for your business? Here are some questions to ask yourself to help you decide:
Is remote work feasible?
If the members of your team can be as efficient when they work remotely as when they work in an office, you have the option not to rent a physical office. You may opt for a virtual office instead.
A virtual workspace usually includes vital business solutions such as a physical mailing address, but sans the overhead costs involved with a long lease. Some companies such as Quest Workspaces offer virtual offices that allow businesses access to features such as a local phone number, a receptionist, and a physical space for meetings. Some offices even let the team enjoy perks such as complimentary coffee.
Will rental costs sink your business?
Renting an office, particularly a large one in a premier location, can cost a lot of money and eat up a huge chunk of your operational budget.
When calculating monthly rental costs, factor in the other potential expenses you may incur when you operate in a traditional office setting. The property owner, for example, may require a security deposit equivalent to one to six months of rent. You may also need to pay for utilities like phone and Internet access.
The costs of renting a physical space may adversely affect startups or small businesses that operate on a lean budget and entrepreneurs who are in debt. Focus first on establishing a solid foundation for the business or on paying off the debt. In the meantime, find alternatives for a commercial space. You can convert an extra room in your house or a portion of your garage into an office.
An office space is essential, but it is not an option for every business. If you can operate remotely and there is no room for rental and maintenance costs in your operational budget just yet, think twice before you sign the lease.