Should My Startup Invest in Office Space?

There comes a time when every entrepreneur considers upscaling to a real office space. After a while, the spare bedroom simply isn’t going to function as a makeshift office anymore! But, it’s a big decision, especially considering the costs involved. You’ll instantly increase your overheads with rent, energy costs, and staffing.

However, you’ll give yourself the platform to earn a lot more money, and take your business to the next level. It’s also worth noting that you can take small steps here. You don’t necessarily need a fully equipped downtown space. You could start with a virtual office or hire meeting rooms to begin the growth. You can also use modular buildings to make that first step. Eventually, you’ll make the move to a bigger office space. If you’re thinking about making that first move, here are the best reasons to do so.

You need your home back!

Running a business from your home is a great way to get started. There are minimal costs and overheads, and you can be flexible with your work hours. However, the family will slowly get fed up of the papers, clutter, and wires building up in the spare bedroom! You begin to blur the lines between personal and work life, which is damaging to the family. Eventually, you’ll need to graduate out, and expand into a real office. Decide which is the best office space for you, and start planning the big move.

You’re taking on more staff

If you’re thinking about adding staff to the roster, then it’s time to consider new office space. Of course, it is possible to work with remote staff. Skype, email, and instant messaging makes it easy to telecommute. However, nothing beats getting in a room together and discussing ideas. Even if your employees telecommute three or four days a week, it’s always good to get together in between.

You need to impress clients and investors

As you take on bigger clients, you need a professional space to conduct business. Imagine showing a potential investor around your kitchen! Not exactly the right look, is it? Even a small office space will impress investors and prove to clients that you’re serious. More importantly, it proves that there’s money coming into the company, and you’re spending it professionally. Consider whether your client base is expecting to see a professional premises.

Legal issues

It is legal to work from your house, but only for a certain amount of time. If you’re hitting a particular threshold of income, and hiring employees, it may be illegal to work from home. Your business needs a registered address to legally qualify for tax registration. As soon as those lined become blurred, you’re in trouble. If there are any questions of legality, it’s time to move on to bigger office space!

Resources and IT

Lastly, consider how much IT and resources you’re currently consuming. As your business grows, you need to improve your broadband speed, and ensure 100% uptime for your website. Can you really keep relying on your home broadband? You need a space that can offer a business solution. Make sure your company is running at full speed.

If your business is growing quickly, it might be time to move into a bigger office space!

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