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For some entrepreneurs, working without office space is unthinkable. And that’s understandable because for them, an office space is synonymous with work – and it can increase their productivity too.
Today, the strange office advantages — ranging from gyms to restaurants — are the norm, and a desire to adapt to changing times influences some entrepreneurs in obtaining office space they don’t need. Peer pressure aside, some may feel they aren’t really running a business if they don’t have a physical office. Is that the case? Of course not.
If you are about to rent office space, here are the reasons why you can reconsider such plans.
1. Remote work is also fashionable.
While the office benefits mentioned earlier (and more) are trending in the startup space, remote work, a viable alternative to renting an office, is in vogue too. According to a Gallup poll, the number of people working four or five days a week rose from 24 percent in 2012 to 31 percent in 2016. Gallup’s State of the American Workplace Report also shows that 43 percent of Americans spent at least some time working remotely in 2016, a four percent increase from 2012.
Related: How start-ups enable women to work from home
Keeping up with the crowd isn’t always the best idea, so forget for a moment the numbers about how popular remote work has become. Remote work also has several benefits, including increased productivity, increased efficiency, reduced operating costs (such as office rent costs) and improved engagement Employees.
In addition, allowing remote work gives you access to talent from around the world, talents you wouldn’t otherwise get, and sometimes at lower rates. One area that can benefit is the Blockchain technology sector, where local professionals can be difficult to find or overpriced, and companies often have to look abroad for talent.
The sighted office benefits are fresh and fashionable. But the same goes for remote work. And the latter could be exactly what you need.
2. You’re in debt.
According to a study by the National Association of Realtors, student loan debt prevents 40 percent of people from even starting a business. For others who are in debt but manage to start a low-cost business, they need to constantly monitor their expenses so that they can avoid getting more debt or quickly paying off old debts.
If you are in debt, a physical office is certainly an unnecessary expense. Your goal should first be to pay off your debt. This is necessary because we will deal with it, not all entrepreneurs is great at managing money. And when you’re in debt, spending money on a desk is frivolous.
3. Costs can weigh on your budget.
Attractive office benefits aren’t the only extras you’ll spend money on if you plan to rent a new office space.
First, you need to remember that there are several types of offices, from the full office where everything you will need to run your business is included, to an office where you will buy your own furniture and pay for other utilities. Obviously, the first one is usually more expensive, but you will probably spend more on the second depending on what you need to set up your office.
Yet, apart from the costs based on the type of office you rent, there is the cost of decorating for maximum productivity. Psychologists believe that the colors used to decorate offices trigger different moods among employees. The ultimate goal is that your office shouldn’t be too dull to inspire you or your employees creatively. Because there is a thin line between an office that inspires work and an office too distracting to allow any kind of concentration.
Nevertheless, even without all these extras, renting an office can already be too expensive for you. Money can be better used to solve other problems in your business.
Related: A co-working space vs. a private office: How do you choose?
4. Outsourcing is an option.
I spoke about it briefly earlier, but it deserves its own text. Outsourcing offers many benefits, including, but not limited to, saving office space, greater efficiency, access to skilled workers and lower overhead costs.
Nevertheless, you will need to weigh this carefully.
Are the transactions you are considering outsourcing an essential part of your product or service offering? Will additional equipment be required before it is successfully done? What is the cost implication of having someone do it internally versus outsourcing?
As you consider the potential benefits, consider the disadvantages side by side. Issues such as disclosure of confidential information about your business, loss of control in company procedures or communication problems can back their ugly heads when you outsource the work. Can you face such difficulties? Is the stress of getting and setting up an office greater than the stress of dealing with or managing outsourced workers?
The size of the global outsourcing industry is huge at $88.9 billion, but it may not be the solution to your office space needs. Or it could be. You’ll decide.
5. There are other alternatives.
If you’re already working from home and considering getting office space, there are other options you probably haven’t looked at.
Related: Where are you going to work today? The death of the 8 o’clock office.
Co-working spaces can eliminate the need for a traditional office. They are affordable and you pay a monthly membership fee to use them. Depending on the amount you pay or the offices available in your area, you can also have access to a conference room if you are building your business and need to meet regularly with your employees.
If you operate your business in an area where there are small business incubators, you can apply for it to allow you to set up offices for your start-up at a discounted rate. Cons here include the limited or no availability of incubators in your area, undergoing a tedious application process to be accepted in an incubator and the restriction of incubators available to certain industries. In addition, while leasing agreements with small business incubators are not as expensive as obtaining office space, they are often more expensive than membership fees for a co-working space.
After all considerations, if you finally decide that you need office space, you are not limited to a traditional office, but can benefit from the use of a co-working space or rental of a small incubator. lower-priced businesses.
There are substitutes for office space.
Don’t spend a fortune renting an office when you can do without it for at least a while or maybe until you are more profitable. And if you’re profitable, you can still save money by looking at other alternatives discussed here. Whatever your final decision, choose an option that meets your needs or the needs of your business.