- May 10, 2019
- Posted by: Asheesh Sinha
- Category: Business plans
Operating space for your business is probably one of its major costs. The need for office space will remain constant during a company’s development, but the type that you need will vary depending on your growth and production needs. Here are some office spaces to consider as you build a new business.
Working from Home
When launching a startup, the entrepreneur often has limited funds for operating their business. Sometimes, the company gets started in a basement corner or extra bedroom. For early-stage startups, a remote office in the home can be perfect, providing needed space and privacy for conducting business transactions. Often, just a desk, chair, phone, and computer are needed to get started. As profits increase, additional equipment and office supplies can be purchased to facilitate operations. Accounting, transcription, and other services can be outsourced to avoid the cost of housing them on company premises.
Renting an Office or Facility
As the business grows, additional space may be needed to accommodate an extra employee or two, physical storage space, and possibly an office area in which to meet with clients. At this stage, it may be expedient to move the company from your home to a virtual office, or a leased or rented office if your budget can accommodate this expense. Virtual offices are rentable, temporary offices or suites. Usually they also have a receptionist, mailing system, and a professional physical address which all make virtual offices a great option for those in transitionary periods of their business. Settling into a public business location helps to make the company look more professional to both the owner and customers. Advertising and marketing materials can boast of a new location that prospective clients will be eager to visit. Your business could also share an office with another similarly sized company, which could offset costs and support both businesses.
Buying Office Space
As your company continues to grow and prosper, you may begin to achieve profitability at a level where you can buy an office building. The structure can also contribute to business income if you lease other units in the building to interested companies, which will help to cover the monthly mortgage payment and utilities. Keep in mind that as the owner, you will be responsible for certain aspects of property maintenance, which includes scheduling HVAC repairs, cleaning the interiors, and maintaining the exterior pavement. However, owning the building comes with certain benefits. Purchasing office space may result in higher tax deductions. A privately owned company building can also provide the means to expand your products and services along with the requisite office space needed for the business’ infrastructure. You might even decide to sell the building for profit after it accrues equity over time.
Watching your company grow through its various locations and home offices is almost as exciting as operating the business. Explore office-space options for your startup to determine the best location for each phase of your business’ development.
If you’re just beginning your company formation process, and are getting off the ground, you’re probably going to need some help if you want to do it right. Let Plan Thy Business help you!