Should Your Startup Rent An Office Or Not?
Almost every startup faces this question in the beginning: “Should we rent an office or not?” Then there comes the question “What kind of an office do we need?”
The answer depends mainly on the resources you have available and the number of team members.
For really small teams of up to 3-4 people there is no point in getting a separate office at all. The cheapest opportunity is that all just work from home. The problem here is that many people cannot be productive at home and need the feeling of being at work to get them in the right mood for business. Another not so expensive opportunity for those people are the so called “coworking spaces”.
Coworking has been very popular in the recent years. It is a new style of organizing work in a big office, but what is specific is that people there are usually not employed by the same company and are just renting a whole room, a desk or just one spot.
Coworking spaces around the world are very suitable for startups that cannot afford their own office as well as for freelancers that work alone.
Some benefits of choosing a coworking space for your company:
You can meet potential clients or partners there
Because of the fact that there are all kinds of different people and teams in a single office, you need to keep in mind that some of them could be your potential clients or partners. Coworking spaces are great for networking and you need to take of advantages of every opportunity to get to know the other teams.
You can invite clients or partners
Coworking spaces usually provide a meeting room that can be used by the teams. That is the place where you can conduct meetings with clients or partners. When working at home you cannot enjoy such benefits.
You can learn something new and become part of the community
Usually coworking spaces organize and host all kind of different events. That is a great way for entrepreneurs to learn something new and become part of a community.
Decreased feeling of isolation
Freelancers and really small teams can often feel kind of isolated when working alone. When you are in a coworking space you often meet lots of new people and you are never alone.
Office materials are provided
You do not need to worry about printers, papers, pens all other kind of office materials. Most coworking spaces provide them for their customers.
Costs of coworking spaces vary depending on the country you are in. The average cost in the USA is about $200 per month. In Europe the average price is a little bit higher – $281 per month. It also depends whether you rent a whole desk, just a single working space or a separate room.
If you want to feel even more inspired for choosing a coworking space, you can check out this selection of cool places by Road Warrior Voices.
If your team is bigger – more than 5 members, you can choose to rent an office. Offices are always the most expensive option and prices are way different in different regions, but for a bigger company it’s a must to have your own space.
And how to understand you need one?
Your team has at least 5 members and you expect to grow sooner
You need to often invite clients and partners
Your business depends on smooth collaboration and it cannot be executed from distance
Laws require you to conduct your business from a non-residential address
And as renting your own office is expensive, it is better to go for that option only after you have the necessary resource. That means you need to ensure that you have enough revenue or funding to afford an office.
To sum it up, having your own office really depends on your needs. If you are a small team, there are plenty of better options. Go for an office only when you revenue is big enough that you can afford to pay your rent without getting into financial trouble.
