One of the important questions you must ask yourself when forming a startup is where you’re going to operate. There are many factors to consider, such as how many people you’ll be hiring and what equipment you’ll need. Many startups start small with just a few employees, making it easy to work out of a house or garage. Naturally, larger operations will need to supply their employees with equipment and more space.
The kind of business you’re running also makes a difference. For example, a manufacturing company would need much larger premises to handle their operations. On the other hand, those starting a one-man consultancy firm can easily manage it from home. All kinds of businesses will need some form of office, so it’s worth considering whether getting a commercial property will help.
Many companies start out from home and move into an office building as they expand. After all, being able to hire more staff and handle more work improves their profits. The question is where should you work in the early stages. There are many considerations to make before deciding on one or the other. Here are some of the factors that go into deciding on whether your business should operate from home or an external office.
Finances
The first and most obvious factor you’ll have to face is the amount of money you’ll have to spend. If business owners are able to work out of their home, they often do this to save money. Renting or buying an office can take a lot out of a company’s funds, especially when you’re unsure of how much you’ll make.
If you’re considering using a commercial property, keep in mind there are many costs to cover. As well as the purchase or monthly rent, you’ll also need to worry about utilities, maintenance, and equipment costs.
Keep in mind that sometimes you can get an office for relatively cheap. Some buildings rent out cheap office units to various companies. If you only need a small amount of space to house your employees, this can be perfect.
Working from home is, of course, cheaper, but you’ll still have to cover some costs such as equipment and supplies. While you’ll have to pay more to move into an office, it can often be a worthy investment. It can help your company be more productive and handle more work, leading to increased profits.
If money is the issue, don’t forget there are various ways to raise money for your business. You may wish to use your funds on office space, as it can often pay off through the increased productivity. Of course, working from home can be cheaper, but consider how much more you’ll be able to do from an office.
Security
It’s likely that you’ll be keeping a lot of sensitive business documents and expensive equipment in your workplace. If you’re working from home, you’re going to be there much more often. Offices are often left unoccupied at night, leaving them more prone to burglaries.
If you decide to work from an office, make sure it’s well secured. The last person to leave should always lock up the premises. You may also want security staff. The most effective way to stay protected is to fit security alarms and camera. There are companies which supply quality camera systems and other security equipment for businesses.
Of course, your home isn’t invulnerable to burglary. If you decide to work from home, you’ll still have to improve your security to protect your business belongings. Whether you work from home or an office building, it’s worth getting property insurance to cover your contents as well as your building.
Employees
A big consideration to make is just how many people you’re planning to hire. When you’re working from home, you’ll most likely only be able to accommodate a small amount of staff. Bringing workers into your house can also be inconvenient for you and your family.
If you’re starting a one-man business, then operating from home might be the best option. This doesn’t mean you can only do one thing. There are services available to handle various business activities for your company. You can also make use of computer software that helps you handle business tasks. Some startup owners outsource some jobs and handle the rest themselves.
However, if you’re planning on bringing in more people, you’re going to need an office. With ample for business operations, you can start building a great team to improve your business. You’ll first want workers who can handle your primary business operations. As you grow, you may also want departments for things like finance, law, and advertising. You have much more room to expand your team when working from an office.
Productivity
The most important thing that should go into your decision is where you’ll be more productive. Getting the most work done is what will drive your business forward. Most people would likely assume an office is the best place for productivity, but this may not always be the case.
A study by a travel company made some of their workers work from home over nine months. They found that the employees who worked from home made an average of 13.5% more calls a week. They consistently outperformed workers in the office over this period. The results suggest working from home may be more productive. More information on the study can be found at Forbes.com. You can handle a lot of individual operations from home, so some people may prefer to work out of their house.
But this doesn’t necessarily apply to all businesses. A different study found that working from home can make businesses suffer. Some companies rely on cooperation and collaboration between workers. If staff need to communicate to get their jobs done, office working is a much better option.
Some companies bridge the gap by allowing office workers more flexibility. Offering flextime means office workers work the same amount of hours each week but on their own schedule. This way, all their work gets done, but they can do it when they feel most productive.
There are also many ways to increase productivity in an office environment. Companies with employees who work from home may find it much harder to motivate them. Still, if more work gets done, it shouldn’t be an issue.
Equipment And Facilities
One of the major benefits of having a commercial property to work out of is how much you can fit into it. As well as having plenty of workspace for more employees, you can also add equipment and facilities you may not be able to have at home.
For instance, you can set up meeting rooms. These can be great for giving presentations, meeting with clients, and also for co-workers to plan projects together. You could also add a breakroom. Giving a space for employees to relax can keep them satisfied.
If you have the money and space, you may even want to add facilities like a cafeteria and a gym. Having excellent office facilities can help you attract the most valuable employees. If you’ve created a great working environment, they’re likely to choose you over competitors.
You can also store plenty of equipment and supplies. You can deck the office out with desks and computers for employees to get their work done. You’ll also have storage space for any office supplies you need.
Some equipment can even help with your daily business tasks. Some companies rely on things like industrial photocopiers and scanners to get work done efficiently. At home, you’re much more limited in the kind of things you can store to improve your operations.
Appearance
Working out of an office improves your company’s appearance. Having a professional business location gives the impression that your business is successful. Your target clientele will also be much more likely to use your services if you have a physical location. It also lets consumers know they’ll be able to visit you face-to-face during office hours if need be.
The actual appearance of your office can also help. You can design your workplace to reflect your core values to let employees and visitors know what you’re about. If you use your office to meet with clients, then an attractive office may make them more likely to do business with you.
Practicality
In many ways, working from home can be more practical. Buying or renting an office means you’ll have to pay for it on top of what you’re already paying for your house. Living and working at home is much more cost efficient in this sense.
It can also be time efficient. You can get straight out of bed and get to work. You don’t have to spend extra time on commuting, opening up, or closing down at the end of the day. It’s much quicker to manage only one building.
Working from home becomes less practical as your business grows. As you need to expand your operations, moving into an office building is a must. Every successful business will need to transition to a bigger building at some point. But startups often find it more practical to begin from home.
