Why Your Startup Should Think Twice Before Spending Money on an Office
What could be better than having your own office? In the eyes of some businesses, absolutely nothing. Many startups have spent a considerable amount of time and effort preparing their business plans and working out what they are going to spend their budget on. But one area where your budget should never be spent on is on an office. It’s one of the most frivolous expenses available. But why should you avoid tying yourself into an office contract? It’s Expensive If you decide to rent an office to yourself, you will find that it quickly becomes your biggest expense. This is money that could be better spent elsewhere, such as on marketing and product development. Consider the fact that startups already have huge problems raising the necessary capital to function and it shouldn’t take long to discover that a few extra dollars a month in expenses is a bad idea. The Long Contract You may not want to think about it, but your business may last only a few months. It’s more common than you think in the startup world and you have to give real consideration as to whether this may happen. A lot of office spaces demand that you sign up for a contract for a certain length of time. Even if your business goes south during this time, you will still have to fulfill the contract. This could leave you thousands of dollars in the hole, especially if you happen to fold during the early weeks of a new contract. There are offices with flexible contracts, but they are an unnecessary shadow over your business. You Don’t Actually Need an Office A lot of new companies look at the costs of an office and decide to rent it out anyway because they believe they need an office. Many of these reasons are no longer applicable to the modern world of business, though. These are some of the key reasons why you don’t need an office:
- You no longer need it to welcome clients in most industries. The majority of business is done in an online capacity.
- Many employees prefer to work remotely from home.
- Practically every business task can be outsourced at a cheaper rate than doing it in-house.