Photo by Paige Cody on Unsplash
When you are starting your own business, sticking to an expenditure budget is often key to getting your enterprise off the ground. 69% of new businesses start at home, which saves a massive part of the startup budget when you don’t have to spend money on an office. But as your business grows and expands, you might start to consider whether you should start working in an office. If you are looking to take on employees, it may not be possible to accommodate them at home. It helps to weigh up the pros and cons before deciding whether to make the change:
1. The cost of an office
Renting an office for your business can be a large part of your budget if you are just starting out. However many entrepreneurs choose to because they are considering taking on employees. As a rough guideline, it may cost up to $1,000 per month per employee to rent office space, depending on the type of space that you rent and the location. Obviously the more prominent your office, the more you can look to spend. Compare this to the cost of working from home. At home you are paying out purely for rent or a mortgage. Your office space is covered in this and in fact you may also be able to claim part of this and a portion of your household electricity bill against your business profits for the year.
2. Setting up an office
If you are running an office space, then you will need to purchase fixtures and fittings, such as desks, chairs, printers, stationery computers and phones. Then let us consider filing cabinets, bookshelves, a water cooler and basic kitchen appliances like a microwave and a kettle. You will need to budget around $5,000 to make sure that your office is fully equipped and functional before you start working there.
3. Maintaining an office space
You should budget at least $80 a month per person for office supplies, which includes items like ink, stationery, kitchen supplies and even toilet tissue. You should also consider that offices need regular cleaning – you may need to hire professional services for this. Dirt and bacteria build up quickly, particularly if you have a lot of electrical equipment running. You need to make sure that your office is clean and hygienic for everyone working there. If you are working at home, you probably won’t have to consider this expense.
4. Boost your public persona
Although working from home costs less, one of the big benefits to having an office space, particularly in a town that has plenty of people going through, is the boost to your business profile. This can have a direct impact on your profits. Aside from the fact that you may pick up passing trade, it is also an excellent way of boosting your brand image by showing that you are running a professional and successful company.
5. Work-life balance
When you are working from home, it can sometimes feel like you don’t get a break. Working in the spare room or on a laptop from the kitchen table is not ideal. Often, you may find yourself working unsocial hours or never really getting a break. One of the benefits of having an office is that you will tend to work more formal 9-5 hours. It separates work life from your home life, allowing you to get a better balance. You will also find that it is far easier to communicate directly with other staff in the office, sharing advice and expertise.
Having an office is a big step for a small business to take. Weighing up the pros and cons can help you decide when to make the move.
