Renting Office Space For Your Business Is A Bad Idea
Copyright © Rahimah Sultan
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Not all businesses require a storefront, however every business and home business requires an office, even those run by one or two people who conduct the majority of their business online or at client locations. Few office spaces are rented on a month-to-month contract and regardless of the condition of your business finances the rent will always come due. While it may give your ego a boost to have your own rented office space, it can also put a huge dent in your wallet.
While there are many points of view in favor of renting office space, usually from real estate agents handling the rent, there are three main reasons why renting office space is a bad idea.
First is the cost. You can easily set up an office in your home, as you already have the available space, and only have to add an extra phone or fax line at minimal cost. Secondly, while a home business office can be small, there is no daily commute. And third, other potential business clients will not be turned away while you’re off the premises taking care of customers, when they arrive at your rented office and find no one there.
You probably have no real reason when starting out to consider renting office space, unless your business requires a showroom or is retail based. Even if you have a few employees, the business can be operated from through telecommuting, and many people enjoy that arrangement.
Remember, the cost of office space goes beyond the monthly rent, as you will be paying utilities, liability insurance and security, and moving all of your equipment into the new space will take time and money. You also have to consider all of the rental terms, the fine print so to speak.
You encounter many pitfalls with a home-based business such as constant interruptions by family and friends as well as the need to keep up with the laundry and housework. It takes a large amount of self-discipline to actually be working in your home office during your scheduled hours. However, being able to get up in the morning, dress for work and walk across the hall to your home business office can save gas and frustration from the daily commute.
Also, if you can perform all of your work at your home business office, you might consider whether or not a second vehicle and its monthly payment and insurance costs are necessary, especially If another member of the household has a vehicle you can use. And, if you have a phone, fax and email you’re totally accessible to you customers.
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Friday, October 19, 2007
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