Does Your Startup Really Need A Physical Office? Is It The Right Time For Your Startup To Move Into A Physical Space?
Most businesses nowadays don’t start with a physical office. Entrepreneurs tend to begin this journey by running their businesses online. As businesses continue to grow, so do business needs such as labor, operational needs, and the demand for more goods and services. So, at what point does a business need to decide to relocate into a physical office?
A virtual office can have many cost benefits for a startup. Nonetheless, as a startup continues to grow, the need for physical space becomes inevitable. Time is often wasted once a company doesn’t have a physical office. Lots of miscommunication can happen that can lead to mishaps in service delivery.
A physical office reduces the likelihood of any miscommunications. Ongoing collaboration can be realized through face-to-face communication. Simply put, even online business communication can’t beat classic conversations.
Today, many companies outsource most of their services to independent contractors. Physical office space isn’t a pressing issue for such startups. However, if you will hire local employees, you need to consider getting a place for your employees.
An office is ideal for you if you have local employees. Employee training can be done once you have set up an office. You can carry out executive roles such as employee and stakeholder meetings in a physical office.
As your business continues to grow, so do interactions with your customers. You need to find a physical office for you to meet your customers. This is more so if there’s a high number of face-to-face meetups. It isn’t ideal for you to always meet your customers in coffee shops.
A physical office is more suitable if you want to build a good reputation for your business. Still, remember that moving into a new office comes with its challenges. You should find the most appropriate and strategic place to move to.
You may start by renting a conference room. This may be the office space of another company. Ultimately, you’ll have to get your own office.
Once a startup gets into the retail space, a physical location may be required. Retail possibilities make startups think about getting physical locations for them to offer their products to consumers. Physical space may also be required for packing and shipping purposes.
Retail functions can’t be done from your living room, especially if you are thinking about expansion. An efficient retail business needs to have a physical location for seamless service delivery.
The affordability of any physical space that a startup is eyeing needs to be considered during decision making. Will you meet the rental obligations? Can your startup afford to pay rent? Rent is expensive. Still, amenities and utilities may not be covered.
The right location also needs to be factored in. Prime and strategic locations will bring in more business. Nonetheless, you have to pay more rent for such spaces.
The physical office that you find needs to have room for expansion. You may need to purchase more office furniture as your startup continues to grow. Without such space, you’ll have to find a larger space to move to.
You’ll need to have a budget in place to make sure that monthly overheads such as rent and utilities are met. If you will be in a cash tight position once you get into a physical office, then it is probably not worth it yet.
There are various factors that need to be considered when deciding if it is worth for your startup to move into a physical office. Your finances, your industry, and your particular startup should be factored in. Before making a decision, make sure it is the right choice for your startup.