Startups are companies that are designed to grow fast, which is why most successful businesses double or triple their workforce in first couple of years. For this reason entrepreneurs need to think about their possibilities when it comes to office space in early phases of company’s growth. They definitely shouldn’t wait until their current offices become too tight, because finding a property for short term stay can be both costly and tiresome. One of the main questions that should concern them is: Whether they should lease or build their company offices? The answer is not simple, and it mainly depends on the current stage company’s in and the amount of revenue it produces each month.
Home or workhub offices
Most entrepreneurs start doing business from their own home or a workhub office. Both of these places come with their own benefits and disadvantages. You don’t need to pay any rent for home office, but if you live with your family, partner or roommates, you will definitely face a lot of distractions, while working. Workhub is great because it is much cheaper than leasing an independent office space and it also hosts several other companies or individuals, which means it provides great atmosphere for idea development and establishing valuable contacts. On the other hand the presence of other people and companies may also cause distraction as well as inability to keep company secrets.
Leasing office space
There are not many benefits of leasing office space. This phase usually comes company has too many employees to work from home or a workhub, and it is still not profitable enough, for entrepreneurs to buy their own space. This engagement comes with many disadvantages. Leasers can easily increase the rent, forbid office branding or find another tenant who pays more, in which case company might get evicted, which leads to large business decline.
Benefit of a doubt is probably the most important one, when it comes to office leasing. Although entrepreneurs are optimistic and willing to take certain business risks, most of them are very doubtful when it comes to buying or building their own office space. They are not sure whether their company will grow fast enough, and earn enough revenue to cover this big investment. That is why office space building or purchase is usually delayed until the sum paid for months or even years of rent catches up with prices of moderate office buildings.
Building office space
Entrepreneurs who are brave enough to start building their own company offices can save a lot of money on rent. Although most people think that building any kind of business structure requires large investments, today there are plenty of affordable and innovative ways to plan and build office space.
When thinking about building costs, entrepreneurs should take in consideration wide array of affordable construction possibilities that are available in the modern world. Some of these are:
- Modular office buildings – These homes are built indoors, and assembled at the office location. Modular homes industry is well developed and now there are hundreds, if not thousands of different modular home designs.
- Manufactured office buildings -These are even less expensive than modular office buildings and the main difference between these two is that manufactured structures are not placed on permanent foundations, which in some cases means that they can be easily moved from one place to the other.
- Shipping container structures – Shipping containers are widely used for office buildings’ construction.
- Different eco-friendly office building designs – Have you ever heard about straw bale construction or earth houses? These eco-friendly constructions are both cheap and energy-efficient and are great for branding.
Tearing the old and building the new
Why is tearing down the old building and building the new one a good option? Mainly because older buildings are much less expensive than the new ones, and even if you decide to buy relatively new office space, you will need to invest at least some funds in its renovation. Since office space is often more expensive than regular homes, sometimes buying an old house in the suburbs can pay off big time. Some of these homes can’t be adapted for business purposes, and then you need to tear them down and build brand new office space on its foundation.
Using the same foundation will save you a lot of money, plus you already have gas, electric and water connections from the previous home, say highly-rated demolition contractors. Make sure you find the right company for this job, one who will complete all work professionally and fast, acquiring all necessary demolition permits, so you don’t need to lose yourself in complicated bureaucratic maze.
The decision on this matter mainly depends on entrepreneur’s belief in success of startup he/she is running. Entrepreneurs who have second thoughts about their business enterprises, shouldn’t run them in the first place. On the other hand those who believe in their startup’s success, should start thinking about buying or building their own premises, because constant search for bigger office space is a huge waste of time and funds.