It's comparison time. Home offices are straightforward to start with. It's the low cost alternative. But it is certainly not free. There are extra charges start ups often don't consider, for example adding a telephone line or upgrading Net access.
Then there are the less obvious ones, such as the time, energy and price of meeting folks away from home. If you're like most startups, you just meet at a coffee bar. You need to factor in the costs (mileage, coffee for one or two, round-trip travel time, etc.) linked with the 10 to 15 trips you make each month. You might simply spend $100 a month on conferences that could be held at your office, if you had one.
Next, account for the chance of sending a bad message to a possible business customer who calls your business and the phone line is answered by a 2-year-old. Or the dog starts barking in the background while you try to work the deal. How do you factor the monetary cost of lost business because a prospect gets a unflattering impression about your business activities?
Bear in mind that first impressions are everything. By not having a business space to meet and work from, you could be sending mixed messages about your capabilities. Most individuals I meet that are coming from a home-based office let me know the same thing; it is so hard to telecommute due to the various distractions. Also consider that meeting at cafe's could be just as bad. While being a low cost option, cafe's are often pretty tiny and when filled to capacity have a large amount of background chatter that may be very distracting.
The base line idea is that it makes more sense to spend $300 per month on a tiny office, than to try to save the money by remaining at home and working from coffee and tea shops. You will likely find that after you factor the costs and time associated with commuting to meeting places, you will probably save more money and time by renting out a one individual office space. This way you can stay put saving on gas and the costs of coffee for one or two. You will also avoid commuting which is time that could be spent doing income-producing work.
We have been helping businesses in the Minneapolis Commercial Real Estate market for a few years now, and in my experience step one to a thriving business is getting out of the nest and surrounding yourself in a formal and upscale business environment. Obtaining office space is the first and most important part of this process.
Then there are the less obvious ones, such as the time, energy and price of meeting folks away from home. If you're like most startups, you just meet at a coffee bar. You need to factor in the costs (mileage, coffee for one or two, round-trip travel time, etc.) linked with the 10 to 15 trips you make each month. You might simply spend $100 a month on conferences that could be held at your office, if you had one.
Next, account for the chance of sending a bad message to a possible business customer who calls your business and the phone line is answered by a 2-year-old. Or the dog starts barking in the background while you try to work the deal. How do you factor the monetary cost of lost business because a prospect gets a unflattering impression about your business activities?
Bear in mind that first impressions are everything. By not having a business space to meet and work from, you could be sending mixed messages about your capabilities. Most individuals I meet that are coming from a home-based office let me know the same thing; it is so hard to telecommute due to the various distractions. Also consider that meeting at cafe's could be just as bad. While being a low cost option, cafe's are often pretty tiny and when filled to capacity have a large amount of background chatter that may be very distracting.
The base line idea is that it makes more sense to spend $300 per month on a tiny office, than to try to save the money by remaining at home and working from coffee and tea shops. You will likely find that after you factor the costs and time associated with commuting to meeting places, you will probably save more money and time by renting out a one individual office space. This way you can stay put saving on gas and the costs of coffee for one or two. You will also avoid commuting which is time that could be spent doing income-producing work.
We have been helping businesses in the Minneapolis Commercial Real Estate market for a few years now, and in my experience step one to a thriving business is getting out of the nest and surrounding yourself in a formal and upscale business environment. Obtaining office space is the first and most important part of this process.
About the Author:
Elias J. Russell is a leasing agent and partner with JGM Properties in Bloomington MN. JGM Properties has 200 lessees from 150 Sq feet to 30,000 Sq in 10 office properties with over 1 million square feet. The buildings are in Bloomington, Brooklyn Center, Eagan, Eden Prairie, New Hope, Plymouth, Woodbury and Waseca MN. For more info about common questions in reference to office, warehouse, and retail space for rent, check out our FAQ page. If you would like further info our web site has plenty of info regarding the Minneapolis Office Space market.
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